Is Blackrock Buying the US Equity Market?
by ilene - February 2nd, 2010 2:09 pm
I asked Tyler at Zero Hedge about this and he explained that Blackrock is probably aggregating its ETF exposure by buying iShares which it now owns. In other words, it’s netting out existing (short) ETF exposure and hedging by going long the stocks. Blackrock’s net exposure is likely negligible. - Ilene
Is Blackrock Buying the US Equity Market?
Courtesy of Jesse’s Café Américain
One might conjecture from this enormous number of 13G filings noted below that Blackrock has taken what appears to be new 5+% stakes in over 1,800 US equities.
"We counted over 1,800 13Gs that Blackrock dumped on Friday…For those less familiar with the 13G…it’s a requirement when ownership exceeds 5% of the outstanding shares…these filings represented new positions for Blackrock since we only counted 11 amended 13Gs, which in itself seems very surprising, given the long list of stocks."
Holy guacamole!
Perhaps this is an error, or a misreading of the data. Someone ‘fat-fingered’ the Edgar filing button.
We are incredulous that a private investment firm, no matter how well connected, could have taken 5+% positions in most of the NY listed equity market so quickly. Driven madly bullish, with enormously deep pockets, and an abiding faith in their ability to defy the odds? Facilitating the hostile takeover of the rest of US real economy by a cabal of bonus taking Bonapartes? Starting a new Blackrock 1800 index fund from the bottom up, build it and they will come? LOL
Certainly the SEC will inquire as to their intentions, which is the purpose of such filings, and an explanation to the investment public will be forthcoming.
We suggested the other day that Blackrock and the NY Fed might turn out to be Obama’s Halliburton and KBR – private contractors fulfilling administration policy. NY Fed Conspired to Hide Details of AIG There are repeated rumours of an invisible hand in several markets, as an arm of Washington. But this is a bit much.
The Robert Rubin Rule of Financial Crisis Management was stated in the mid 1990′s. It held that buying SP futures to prop the stock market was cheaper than trying to clean up the mess after a stock market panic. But this was not about actually buying the market; it was about using price to manage perception, in the manner recommended by Edward Bernays.
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