There is an interesting article by the usually not to be admired (I find) Merryn Somerset Webb, in the FT.
Black Rock has, it seems, urged the European Central Bank to stimulate the eurozone economy by printing money and using it to buy equities.
Global elites have a full-on meltdown every time the UK opposition leader Jeremy Corbyn suggests some kind of “people’s QE” or nationalising a couple of utility companies. Yet when BlackRock says this no one blinks.
So far, so true.
But her conclusion:
Public equity purchases distort pricing signals; they are anti-free markets; they will be almost impossible to unwind; and think of the governance issues.
is typical of the financial services sector.
In fact the overall conclusion we should be drawing is surely that this is another of the the most glaring examples of so-called corporate welfare (or state benefits) for the rich. In order to save Black Rock’s ‘growth’ it needs the state owned bank to help bump up the value of its investments.
And this is a full decade after the original financial crisis during which the poor have been told, in Europe at least, that there is no welfare money for them.