BlackRock: The Conspiracies You Don’t Know

About this Video

• Video Title: BlackRock: The Conspiracies You Don’t Know
• Channel: More Perfect Union
• Speakers: The video features a single, unnamed speaker.
• Duration: 15:13

Introduction

This video investigates BlackRock, a massive asset management firm, examining claims of its influence over global finance and politics. The speaker explores whether BlackRock's actions constitute active control or passive investment, analyzing its practices and the implications for the economy and individuals.

Key Takeaways

• BlackRock's Scale and Reach: BlackRock manages trillions of dollars, holding stakes in a vast majority of Fortune 500 companies and influencing global financial markets. Its influence extends to interactions with the economy at large.
• Passive Investing and Universal Ownership: BlackRock primarily utilizes passive investing strategies (index funds), owning small percentages of numerous companies. This "universal ownership" gives them significant indirect influence over corporate decisions despite not being the majority shareholder in any single company.
• Voting Rights and Corporate Governance: BlackRock's substantial stock holdings translate to significant voting power, and studies suggest they tend to vote with company management, potentially hindering shareholder democracy. This voting power is derived from the pension funds and other institutional investors they manage, effectively representing the investment decisions (and lack of voting rights) of many individuals.
• Political Influence and Regulatory Loopholes: BlackRock maintains strong ties with government officials and international bodies, potentially influencing policy and navigating regulatory oversight. They self-certify their compliance with passive investment regulations.
• Interconnectedness of Asset Managers: BlackRock, Vanguard, and State Street (the "Big Three") are heavily invested in each other, creating a self-reinforcing cycle of influence and control within the financial sector. This structure potentially limits competition and benefits a limited group of investors.