Politics vs Economics: What Politicians Misunderstand About Markets
Many Happy Returns
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The Misunderstanding of Asset Managers
I'm not even sure they are making hay. They're probably looking down the line and thinking, hmm, the housing market looks wobbly. We could be on the hook for some big losses here if people start defaulting. So ideally, we don't want to get to that point by forcing them there. But I think there's also a misunderstanding from politicians about what it is that asset managers do. Just three Wall Street firms, BlackRock, Vanguard and State Street, manage $22 trillion of assets. These three firms are major shareholders in more than 96% of S&P 500 companies. It's obscene.
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