BlackRock Faced with Catastrophic Loss Worth 100's of Billions, Smashes Industry Records

[Hoodat]

They lust after the short-term financial gains of doing stuff like setting up factories in China to manufacture GM automatic transmissions because they see a quick percentage gain in profits due to the lower labor costs,but seem to have given no thought at all what will happen to them once the Chinese steal their designs and then refuse to sell them transmissions at a discount. Hell,they even sent GM engineers to live in China for a couple of years to help the Chinese work all the bugs out.

Same thing with other industries,too. I know of one Smithfield meat packing plant that shut down,sold out,and moved all their production to China. Hundreds of people out of work now forever in that small town/rural area so that Smithfield could save a few bucks on labor until the Chinese get on their feet well enough to void the contracts and raise the wholesale prices.

You should do some research on BlackRock then.  They are one of the absolute worst.


BlackRock investments in China: Consumers' Research warning consumers, governments

[Hoodat]

https://twitter.com/ConsumersFirst/status/1453319387449024518

[Smokin Joe]

@corbe

What happened then is child's play compared to what is coming. The board is completely out of touch with the wishes of the stockholders,and just don't give a damn. They lust after the short-term financial gains of doing stuff like setting up factories in China to manufacture GM automatic transmissions because they see a quick percentage gain in profits due to the lower labor costs,but seem to have given no thought at all what will happen to them once the Chinese steal their designs and then refuse to sell them transmissions at a discount. Hell,they even sent GM engineers to live in China for a couple of years to help the Chinese work all the bugs out.

Same thing with other industries,too. I know of one Smithfield meat packing plant that shut down,sold out,and moved all their production to China. Hundreds of people out of work now forever in that small town/rural area so that Smithfield could save a few bucks on labor until the Chinese get on their feet well enough to void the contracts and raise the wholesale prices.

IIRC, the Chinese bought Smithfield. At that point, it was their plant they shipped back. If they like it, they will duplicate it, just like with anyone from here who set up manufacturing there. With no EPA and slave labor, it's easy enough to undercut prices.

[Bigun]

Definition of Slavery:

When someone other than yourself has a priority claim to the fruits of your labor.

We are ALL slaves and have been since 1913.

[IsailedawayfromFR]

No. It's loaned, then paid back to the fund with interest using other borrowed money to keep it nominally solvent.

And we call that gobbly gook, worthy of Algore's infamous lockbox

[IsailedawayfromFR]

Ever since I got an engineering job, I have put as much as I could into a 401(k).  This is going to be the only retirement money I have.  It's mine.  I invested it.  And I chose where to invest it.  And if the market tanks, it is on me and me alone.  Government won't owe me a dime, because I refuse to be dependent on them, whether it is Social Security or some government pension.  It has nothing to do with you.

The fallacy here is that it remains within a 401k.

At some point, the government will actually be in such a poor position that it will be seeking funds to prop itself up (or should I say prop up the wasteful welfare spending which keeps them in power) and eye those many trillions within IRAs AND 401ks that do not belong to it but to people like you.

Biden's WH has already made motions that there must be some effort made to obtain those funds as, in their eyes, it is really not yours but theirs as no taxes have been paid and the government has a 'claim' on them.

So look forward to the time when you will have some or all confiscated and IOUs issued to you for increased SS funds or something to the like.

Me, I recognize that to distance oneself from this takeover is to reduce the amount within my IRAs to the extent I can; hence, beginning when I retired 8 years ago I have been steadily withdrawing from them and taking the hit and paying taxes, all for the effort to minimize the amount I will have confiscated.

Due to the tax cuts by Trump, we only have a couple of years until tax rates go up, and my focus has been to maximize the amount taken out to reduce my own exposure.

[Hoodat]

The fallacy here is that it remains within a 401k.

At some point, the government will actually be in such a poor position that it will be seeking funds to prop itself up (or should I say prop up the wasteful welfare spending which keeps them in power) and eye those many trillions within IRAs AND 401ks that do not belong to it but to people like you.

This is certainly true.  But we have not reached that point yet.

And if it does happen, the value of that 401(k) will drop like Enron since no sane person will be buying another share of stock ever again.

[Hoodat]

Due to the tax cuts by Trump, we only have a couple of years until tax rates go up, and my focus has been to maximize the amount taken out to reduce my own exposure.

I am looking to transfer it gradually from a pre-tax 401(k) to a Roth 401(k).  But the timing for this is not right for my family at preset.  If things go south and either I or my spouse become unemployed, at that point will I make a move.  And I will be making a Roth investment at a time when stock prices are low.

[IsailedawayfromFR]

I am looking to transfer it gradually from a pre-tax 401(k) to a Roth 401(k).  But the timing for this is not right for my family at preset.  If things go south and either I or my spouse become unemployed, at that point will I make a move.  And I will be making a Roth investment at a time when stock prices are low.

Understood.

I have also shied away from Roths as, once again, they make sense only when one depends upon the government to honor its promise that it remains tax-free.

There are demons within our government who would without qualm break that promise and have us pay taxes twice similar to what was done with Social Security decades ago.

[IsailedawayfromFR]

This is certainly true.  But we have not reached that point yet.

And if it does happen, the value of that 401(k) will drop like Enron since no sane person will be buying another share of stock ever again.

Buying the stock remains a viable option outside the IRA/401k.

[catfish1957]

Buying the stock remains a viable option outside the IRA/401k.

I agree.  Even when the SHTF, there will be a bottom.  I'll be watching.

But, I'll grant it won't be anything Fink is involved with.

[berdie]

The fallacy here is that it remains within a 401k.

At some point, the government will actually be in such a poor position that it will be seeking funds to prop itself up (or should I say prop up the wasteful welfare spending which keeps them in power) and eye those many trillions within IRAs AND 401ks that do not belong to it but to people like you.

Biden's WH has already made motions that there must be some effort made to obtain those funds as, in their eyes, it is really not yours but theirs as no taxes have been paid and the government has a 'claim' on them.

So look forward to the time when you will have some or all confiscated and IOUs issued to you for increased SS funds or something to the like.

Me, I recognize that to distance oneself from this takeover is to reduce the amount within my IRAs to the extent I can; hence, beginning when I retired 8 years ago I have been steadily withdrawing from them and taking the hit and paying taxes, all for the effort to minimize the amount I will have confiscated.

Due to the tax cuts by Trump, we only have a couple of years until tax rates go up, and my focus has been to maximize the amount taken out to reduce my own exposure.

I know everything you say is true. But if the Feds seize IRAs and 401Ks ...not only will it be catastrophic for the economy I truly think it will be a trigger for some kind of insurrection. It's not only us oldsters that would be affected...there are many younger people trying to provide for themselves. I think it would be messy.

[IsailedawayfromFR]

I know everything you say is true. But if the Feds seize IRAs and 401Ks ...not only will it be catastrophic for the economy I truly think it will be a trigger for some kind of insurrection. It's not only us oldsters that would be affected...there are many younger people trying to provide for themselves. I think it would be messy.

This will be as always an incremental thing, like the frog in the pot of boiling water.

Think "we will only make millionaires pay" then they begin whittling it down to where everyone in the middle class has forfeited their savings.

Remember:  The government wants your hard-earned money in order to pay the welfare recipients who will keep them in power.

[catfish1957]

I know everything you say is true. But if the Feds seize IRAs and 401Ks ...not only will it be catastrophic for the economy I truly think it will be a trigger for some kind of insurrection. It's not only us oldsters that would be affected...there are many younger people trying to provide for themselves. I think it would be messy.

I have been saying this since the Obama admin floated this concept back when he first started in '09.  401k/IRA confiscation and adding it into a nation wide social security vehicle would be just what the dims ordered. 

However, under the present political climate and strong wave of anti-government sentiment, I am thinking that they will take a different, though no less sinister approach.  Just recently, I found of the feds are raping us on incremental charges on Medicare premiums of $1000 a month.  Watch for them to also charge an incremental tax for IRA/401k distributuons They'll use thethe same terminology to justify, and  call it IRMAA (Income Related Monthly Adjusted Amount).

Watch for similar actions on said 401ks/IRA's.  And once they get a toe hold, watch for that additional taxation....  On top of existing tax paid.

[IsailedawayfromFR]

I have been saying this since the Obama admin floated this concept back when he first started in '09.  401k/IRA confiscation and adding it into a nation wide social security vehicle would be just what the dims ordered. 

However, under the present political climate and strong wave of anti-government sentiment, I am thinking that they will take a different, though no less sinister approach.  Just recently, I found of the feds are raping us on incremental charges on Medicare premiums of $1000 a month.  Watch for them to also charge an incremental tax for IRA/401k distributuons They'll use thethe same terminology to justify, and  call it IRMAA (Income Related Monthly Adjusted Amount).

Watch for similar actions on said 401ks/IRA's.  And once they get a toe hold, watch for that additional taxation....  On top of existing tax paid.

The sad part is that it will make no difference whether it is Democrats or Republicans in power as it will still happen.

Even Reagan began the assault on us by taxing SS, and endorsed amnesty.

[Free Vulcan]

That's fair. Sadly, brokers and fin. institutions do not warn clients of what I call the intangibles of these large Fund Managers.

In a corporation, at least there is a democratic process of a relatively large board,  12-25 typically who vote for what is best for the company.  Not woke causes.  These large fund managers are ran by 1-5 usually like minded folks who can let the politics seep into the equation.  If you are invested in 50 different companies in a particuar mutual fund, your stake in the overall direction in the company's health is much less.

Then, as you grow out of control, you then weld every "don't give a damn" investor's share for annual company vote.  New board members, policies, etc.  And like in the case of Fink and Blackrock they have welded that power like no one else.  In fact Blackrock and a few other power players are doing more damage forcinig GND shit down our throats than Thunburg, Gore, Kerry, and PIRG all combined.  All via corporate blackmail.

I wish there was a way that local brokers and analyst would and should become more knowledgeable of fund manager's intent, and share that with clients.   But that is a tall order, and really no practical way to implement.

Not to mention, alot of these guys aren't that bright. They don't understand economics, finance, markets, risk assessment, and couldn't trade their way out of a wet paper bag. What intelligence they seem to have is more of the cutthroat, shady and suspicious scam artist or just straight up street thug type.

You can't lose that much money and actually call yourself competent.