Olivier Perrin – The Brave Little Economist (Switzerland) –
You do not know Larry?
He just made an AMAZING statement.
But before I have to introduce you to Larry.
Larry is the King on Wall Street.
Larry is also the kings maker of just about ALL the biggest companies in the western world.
It’s a lot of power for one man.
I exaggerate? Continue reading.
Those who know him for a long time call him the Wizard of Oz , the one who pulls the strings but who is never seen.
Larry, is not a joker. I am convinced that he is a charming and well-intentioned man, but certainly not a joker.
Thirty years ago, Larry created a boring business, an asset management company: companies, pension funds and individuals entrust their money to make it grow. All these people want to take the least risk possible while hoping for a good return.
For a banker, it is a painful and unrewarding job … They much prefer to be traders , make the merger-acquisition or venture capital . This presents best in dinners.
It must be said that Larry had lost $ 100 million to his bank … It was a kind of punishment.
Except that Larry’s small business was called BlackRock and merger buybacks she became the largest asset manager on the planet.
BlackRock directly manages $ 6 trillion and $ 9 trillion indirectly through their Aladdin management software … In reference to the genius of the 1001-night storytelling lamp .
Yes, Larry explicitly claims witchcraft and the genius of the lamp to which he compares his algorithms used by thousands of managers without knowing what is behind.
In total it’s $ 15 trillion under the direct or indirect supervision of Larry … That’s about as much as US GDP.
Also when the crisis erupted in 2008, it is to Larry that all Wall Street has turned. He was the only one with the Fed to control enough money to be able to save the system. He financed the purchase of Bear Stearns by JP Morgan. It was he who orchestrated the rescue of Fannie Mae and Freddie Mac, two old mammoths of insurance. He bailed out Citigroup, the first American bank of the time … up to 45 billion.
This gives you an idea of the kind of power this man has.
But that’s not all.
With all its money under management, BlackRock is one of the biggest shareholders of almost all major Western groups:
Facebook , JP Morgan , Microsoft , Berkshire Hathaway , the legendary company of Warren Buffet, Amazon , Apple , Alphabet , the parent company of Google, ExxonMobil , the oil giant, Procter & Gamble , Citigroup …
In the United States, BlackRock holds 20% of the technology sector , that is, ALL listed companies in the technology sector … but also 13% of the health sector , 11% of the industry and 20% of the financial sector .
In France, BlackRock is the largest shareholder of Total , Unibail , Vinci , Schneider , Air Liquide , Valeo …
Clearly, Larry Fink can name the CEOs of most of the companies listed above.
It is a phenomenal power … And moreover it probably exercises it in your name.
Indeed, when you subscribe to a life insurance fund or management with your bank, it is quite possible that all or part of the management of this fund is delegated to BlackRock (if you see the names BlackRock or iShares in the allocation of the fund, it is they).
Of course, Larry does not personally own all these shares, he owns them for millions of investors, private, public, big and small who have entrusted their money … And Larry can not do what he wants with.
Last Monday, Larry wrote to all the CEOs of the companies in which BlackRock has invested.
This letter is from the best of intentions. Larry certainly wants to make the world a better place and that’s exactly what he’s asking his CEOs:
“Every company must show how it makes a positive contribution to society”
“Every company has to show how it helps make the world a better place”
Larry expects companies around the world to embark on a great drive towards a better world.
I almost took out my handkerchief before changing my mind.
Tell me Larry, what is a better world?
What place will it make to artificial intelligence ? And the robots ? Is it the end of work ? What will be the roles of States and Nations in the future? How will we reinvent our freedoms and our solidarities
By the way, does Larry really help make the world a better place with the hundreds of thousands of jobs they destroy? And Apple makes us dependent on their devices to sleep no more at night? All the oil that Total exploits, is it good or bad?
I do not pretend to have the answer to all these questions … But you, what if?
And Larry, do you really think that only one of the CEOs to whom you wrote your beautiful letter full of good feelings is so Machiavellian that you do not already work to make the world a better place?
You know, however, that a company by definition is committed to making the world a better place and must even include it in its statutes.
Larry This letter is frightening because it sum all CEOs of large groups of the planet to contribute to a better world by TA vision.
All these CEOs know that you have the right to life and death over them. Your desires for them are orders.
What responsibility, Larry!
Are you sure you will not go wrong?
Once in your youth, you lost $ 100 million to your employer . It was huge. And a good lesson.
Now that your employer is the whole planet … What will be the price of your mistakes?
Is it really serious that you take on your shoulders the future of the world so talented and well-intentioned are you?
Are you the man of ALL situations?
Are you God?
How else to limit the irreparable damage that your decisions can inflict on the world … which will sooner or later inflict all your glory and all your successes do not prevent you from being as fragile as each of us.
Really Larry, more than any other person I wish you a good fortune … For all your genius will not suffice.