Posted on 06/27/2021 7:26:25 PM PDT by yesthatjallen
Imagine a world in which two asset managers call the shots, in which their wealth exceeds current U.S. GDP and where almost every hedge fund, government and retiree is a customer.
It’s closer than you think. BlackRock Inc. and Vanguard Group — already the world’s largest money managers — are less than a decade from managing a total of US$20 trillion, according to Bloomberg News calculations. Amassing that sum will likely upend the asset management industry, intensify their ownership of the largest U.S. companies and test the twin pillars of market efficiency and corporate governance.
None other than Vanguard founder Jack Bogle, widely regarded as the father of the index fund, is raising the prospect that too much money is in too few hands, with BlackRock, Vanguard and State Street Corp. together owning significant stakes in the biggest U.S. companies.
“That’s about 20 per cent owned by this oligopoly of three,” Bogle said at a Nov. 28 appearance at the Council on Foreign Relations in New York. “It is too bad that there aren’t more people in the index-fund business.”
Vanguard is poised to parlay its US$4.7 trillion of assets into more than US$10 trillion by 2023, while BlackRock may hit that mark two years later, up from almost US$6 trillion today, according to Bloomberg News projections based on the companies’ most recent five-year average annual growth rates in assets. Those gains in part reflect a bull market in stocks that’s driven assets into investment products and may not continue.
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(Excerpt) Read more at financialpost.com ...
Ping.
Are they the people buying up all the houses?
Management of 20T is not the same as 20t in cash, liquidation of that much asset would crash everything.
And then what?
Blackrock, yes. Not sure what Vanguard is doing.
Yes. They envision being the new Feudal lords.
I wouldn’t be surprised if we’re not weeks and months away from a repeat of 2008. I’ve been in the mortgage industry since 1978. I’ve seen home loan interest rates from as little as 2% all the way up to 21%. I’ve seen home prices doubled in value in a matter of years and then fall like a rock in a matter of months.
And everything I’ve seen up to this point does not look good about the market in the coming months. I wouldn’t be surprised if a housing crisis of 2021 is twice as bad as what we saw in 2008.
And Black Rock has former management in the Biden regime.
That is really bad.
EVERYONE will rapidly get priced out of the market.
Not good. Not good at all.
That is really bad.
EVERYONE will rapidly get priced out of the market.
Not good. Not good at all.
'With $20 trillion between them, Blackrock and Vanguard could own almost everything by 2028'
Anything they want.
(oops)
Sorry
I use Vanguard index funds to manage my retirement funds. I don’t view Vanguard as “money managers”. They are just a low-cost way for me to manage my own money.
I have a rental property worth about $150,000. Well that’s what it was worth two years ago. Now it’s worth $200,000.
If they wanna offer me a quarter of a million for it, well I guess I would take it.
They want to be feudal lords.
The Great Reset advocates say “You will own nothing and you will be happy”.
Yeah but this a bubble, clear as can be.
If you want to sell, where will yo go? THAT is also increasing.
Meanwhile, your taxes will (rapidly) go through the roof.
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