Adam Tooze: The rise of asset manager capitalism and the crisis of 2008

[Winehole23]

Super interesting article that explains the how and why of Black Rock winding up managing Trump/Biden's COVID relief, as well as implications for "Environmental Social and Corporate Governance" (universal risk backstop!) and
economic inequality.



Prof Gabor has developed an entire interpretation of the political economy of our current moment in terms of the political economy of “derisking”. Here is an excellent talk she gave around COP26.

8O8cXK0VgsI

In this key slide Daniela summarizes the fundamental different in political economy produced when government conceives its role as being essentially to derisk investment by gigantic private asset managers

https://adamtooze.substack.com/p/chartbook-82-the-rise-of-asset-manager

[SnakeBoy]

muh asset manager capitalism bad

[Winehole23]

muh asset manager capitalism badeconomic systems can be better or worse, the morality of the system more or less gets rationalized after the fact. the systems themselves are amoral.

what's most interesting to me is the nexus of money and power. after 2008, politics backstops the private risk first of the banks, and now of asset managers.

I think there's a legit argument to be made that besides asset managers hijacking the political system, the fees associated with intensive financialization represent a cost inefficiency of the system and jack up prices on everything for everybody. a rentier price premium, if you like.

[Winehole23]

You see this in pension funds and housing costs, to take two prominent examples.

[Winehole23]

muh asset manager capitalism badI gave you my topical take, what's yours?

[Winehole23]

None, as usual.

Shit posting and ankle biting is Snake Boy's deal.

[DMC]

Another snooze thread.

"The Devaluing of The San Juan Rain Forest's Menge Tribe and Their Struggle to Negotiate Fish Prices with the Trump Administration"

[ChumpDumper]

Sure riles you Trumptards poors up though.

[Winehole23]

Sure riles you Trumptards poors up though.DMC and Snake Boy very demonstrative about not caring. Ignoring a thread is my go to for that.

There's nothing inherently boring to me about the USG providing an implicit backstop for finance capital in general (and, as the article suggests, more specifically for private investment in the transition to more sustainable energy) -- the FDIC and pension insurance don't really compare.

Weird how all these cheerleaders of capitalism in the political forum are so incurious about how it works and how it interacts with political power.

[DMC]

DMC and Snake Boy very demonstrative about not caring. Ignoring a thread is my go to for that.

:lol you've never ignored a thread in your life. In fact, there are threads you've created that only you post in, and you argue with yourself there and quote yourself and respond to those quotes.

You're just boring as fuck. No one gives a shit about some obscure financial shit from 2008.

"This is super interesting, this book on the Basal ganglia. For example, did you know ..."

[Winehole23]

The crash of 2008 isn't some obscure, piddly deal, economically or politically. Nor is the the financialization of the US economy. If that doesn't interest you, perhaps that says more about you than me.

You're out of touch, tbh

[SnakeBoy]

muh financialization bad

[DMC]

The crash of 2008 isn't some obscure, piddly deal, economically or politically. Nor is the the financialization of the US economy. If that doesn't interest you, perhaps that says more about you than me.

You're out of touch, tbh


Sorry you're struggling. Maybe you should have put something aside for a rainy day. Take some personal responsibility instead of blaming politicians.

[Winehole23]

Dude, you're all over the place :lol

The intent here is descriptive, not hortatory. It's not like Black Rock being the Fed's administrator for a multi-trillion dollar COVID bailout is some piddly deal either, or a matter of me bucking up and assuming personal responsibility.

[Winehole23]

muh financialization badwhat caused Bear Stearns, AIG, Lehman Bros et al to go tits up and resulted in trillions of bucks in socialized risk? trad capitalism died that day, tbh.

financialization is inefficient -- a drag on productive investment and intrinsically inflationary. it's based on gatekeeping and fees, it crowds out individual investors and occludes risk. in 2008 it rendered US banks insolvent. it took 14 years of ZIRP and QE to prop the banks up and they're still muddling through, tbh.

what's so great about financialization in your opinion?

[Winehole23]

:lol you've never ignored a thread in your life. In fact, there are threads you've created that only you post in, and you argue with yourself there and quote yourself and respond to those quotes.

You're just boring as fuck. No one gives a shit about some obscure financial shit from 2008.

"This is super interesting, this book on the Basal ganglia. For example, did you know ..."the way you keep waving your "I don't care" flag raises questions ostensibly answered by the flag.

lol your grudges

lol you continually straining to put other posters down.

[Winehole23]

totally aside, boring is underrated

[DMC]

OK thanks, good luck getting any discussion from anyone not named Boutons, and even then only Rawstory and OccupyDemocrats vomit.

[Winehole23]

OK thanks, good luck getting any discussion from anyone not named Boutons, and even then only Rawstory and OccupyDemocrats vomit.it's a bulletin board, not the hit parade. if one other person read it, got something from it and posted nothing in reply, I'm totally cool with that.

per contra, if no one read it or got anything from it I'm cool with that too, because I got something from it.

btw, how do you like the taste of my crew socks?

[SnakeBoy]

what caused Bear Stearns, AIG, Lehman Bros et al to go tits up and resulted in trillions of bucks in socialized risk? trad capitalism died that day, tbh.

financialization is inefficient -- a drag on productive investment and intrinsically inflationary. it's based on gatekeeping and fees, it crowds out individual investors and occludes risk. in 2008 it rendered US banks insolvent. it took 14 years of ZIRP and QE to prop the banks up and they're still muddling through, tbh.

what's so great about financialization in your opinion?

Sorry you've been struggling since 2008. Maybe you should have taken advantage of all the opportunity since then. Take some personal responsibility instead of blaming muh financialization.

[Winehole23]

Sorry you've been struggling since 2008. Maybe you should have taken advantage of all the opportunity since then. Take some personal responsibility instead of blaming muh financialization.I'm not struggling at all, too bad you're just another poster who wants to talk about me rather than the topic.

[SnakeBoy]

I'm not struggling at all

I'm glad financialization has been good for you then.

[RedStripe]

:lol you've never ignored a thread in your life. In fact, there are threads you've created that only you post in, and you argue with yourself there and quote yourself and respond to those quotes.
lol

[Winehole23]

I'm glad financialization has been good for you then.I don't rely on investments whatsoever, so I don't know what what you're talking about.

Go ahead, keep talking about me.

[DMC]

I don't rely on investments whatsoever, so I don't know what what you're talking about.

Go ahead, keep talking about me.

shocking

[pgardn]

Keep posting please.

I read the stuff.
Some of it I gotta read more on, some I dont agree with, some I do, and...

Its good stuff imo. Its so easy to make money when you have a job that deals with so much money. Its so easy to hide or just skim a bit here and there. Trumpsters are supposed to interested in the putrid swamp smell that arises from these big financial groups but its too boring. Its not a good old blatant lie that the orange man gave them to relish.

[Winehole23]

Keep posting please.

I read the stuff.
Some of it I gotta read more on, some I dont agree with, some I do, and...

Its good stuff imo. Its so easy to make money when you have a job that deals with so much money. Its so easy to hide or just skim a bit here and there. Trumpsters are supposed to interested in the putrid swamp smell that arises from these big financial groups but its too boring. Its not a good old blatant lie that the orange man gave them to relish.Thanks, man

The 2008-9 stuff fell mainly under Obama, but Republicans voted for the banker/nonbank lender/ market maker/donor class bailout with austerity for everyone else too. Obama also normalized Bush's GWOT and GWOT inspired predations on privacy/enhancements of official secrecy. He promised to nail the telecoms to the wall for illegal domestic surveillance, but then he voted to immunize them. Then he got elected, appointed a lifelong Republican SECDEF, and policed the border like no one before or after him.

Energy independence? Obama shepherded that.

Obama was center right, practically a Tory, a caretaker of the powers that be. Even his signature accomplishment, the ACA, was negotiated BCD to ensure universal access to insurance companies rather than universal health care. Obama greased the skids for an ersatz populist like Trump, tbh.

[SnakeBoy]

Damn WH, that Biden Malaise is hitting you hard

Clinging to your mask and past grievances is an unhealthy way to deal with

[ChumpDumper]

:lol past grievances are the main things that motivate Trumptards

[boutons_deux]

Private capital is buying up nursing placement agencies because traveling nurses or making a ton of money and the agency fees are significant

[Winehole23]

https://pbs.twimg.com/media/FlFMfwpaEAAUaHr?format=jpg&name=medium

[Winehole23]

Ukrainian President Volodymyr Zelenskyy and BlackRock (https://www.cnbc.com/quotes/BLK/) CEO Larry Fink agreed to coordinate investment in rebuilding Ukraine, Kyiv announced Wednesday following a meeting between the two men.


A readout from the Ukrainian president’s official website (https://www.president.gov.ua/en/news/prezident-obgovoriv-z-generalnim-direktorom-blackrock-koordi-80105) said Zelenskyy and Fink had “agreed to focus in the near term on coordinating the efforts of all potential investors and participants in the reconstruction of our country, channelling investment into the most relevant and impactful sectors of the Ukrainian economy.”


BlackRock Financial Markets Advisory and the Ukrainian Ministry of Economy signed a memorandum of understanding in November, after Fink and Zelenskyy met in September (https://www.president.gov.ua/en/news/volodimir-zelenskij-i-golova-blackrock-obgovorili-zaluchenny-77861) to discuss driving public and private investments into Ukraine to rebuild the country after Russia’s highly destructive invasion (https://www.cnbc.com/2022/12/27/russia-lashes-out-at-the-west-warns-ukraine-to-fulfil-its-territorial-demands.html).

https://www.cnbc.com/2022/12/28/zelenskyy-blackrock-ceo-fink-agree-to-coordinate-ukraine-investment.html

[Winehole23]

Ken Paxton and ten other Republican AGS sue BlackRock, Vanguard and State Street over ESG investing


Texas Attorney General Ken Paxton, whose office filed the lawsuit, in a statement accused the defendants of promoting an "illegal weaponization of the financial industry in service of a destructive, politicized 'environmental' agenda."

The lawsuit seeks to block the defendants from using their investments to vote on shareholder resolutions and take other steps that could undermine coal output and limit market competition.


It also seeks civil fines for violating federal antitrust and Texas consumer protection laws.


The case is Texas et al v BlackRock Inc et al, U.S. District Court, Eastern District of Texas, No. 24-00437.

https://www.reuters.com/legal/blackrock-state-street-vanguard-sued-by-republican-states-over-climate-accords-2024-11-27/