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RE: The Elevator Race to the Bottom

in LeoFinance3 years ago

You can print all the money through taking on debt all you want, but eventually that has to be repaid one way or another

Unless you default on it of course! Then you don't have to pay it :) It is incredibly common in modern times, for individuals, for companies, and for countries!

singling out the two largest managed funds in the world, Blackrock and Vanguard. They are the major investors in Facebook, Twitter, Alphabet, Apple, Microsoft, Amazon...

Those 2 are largest investors in everything :) S&P 500 and all the major global indices. But is that a surprise? :) Who owns Vanguard? I am going to argue that YOU do.

The Vanguard Group, Inc. is an American registered investment advisor based in Malvern, Pennsylvania with about $7 trillion in global assets under management, as of January 13, 2021.

Vanguard is owned by the funds managed by the company and is therefore owned by its customers

Blackrock is a different deal.

If you have 7 trillion dollars to invest, but have very little choice. If have to invest in everything. Vanguard is basically index funds. They MUST invest in indices, meaning, they have to invest in all components of those indicies. It is a chicken-and-egg problem :)

Taraz, as you pointed out that this is a complex subject. This I agree. But I do not agree that the future is bleak. Now of any times, you as an individual can break away from conventional investments that is offered my mutual funds as a part of your retirement plan. You CAN choose not to invest with Vanguard. Look at yourself, you are already doing it. I trust your judgement. And if I do, I can't say that the future is bleak, can I?

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Unless you default on it of course! Then you don't have to pay it :) It is incredibly common in modern times, for individuals, for companies, and for countries!

Yes - it is going to happen more and more too... sounds like a working economy!

Who owns Vanguard? I am going to argue that YOU do.

Very likely somewhere. This is something that a lot of people don't get about the investment funds - we do this to ourselves :) Police, teachers, nurses - complain about the investors, but it is their retirement money that is investing.

And if I do, I can't say that the future is bleak, can I?

The future of the traditional economy is definitely bleak! That is why I am opting out of it where I can :D

The solution as I see it, are new assets and mechanisms that are decentralized and able to be walked away from and unsupported if they become too controlling. One thing Hive has proven is the power of being able to walk away.

Yes, more and more we are developing parallel economies. I know the case of the United States. On one side, the United States (at least certain population) never got out of the recession of 2007-08! While the 'other' population is thriving driving their Teslas! It's bizzare!

The Finnish government for the first time in history, never got back into the black either. It is a bizarre world we have encouraged.