A friend of mine drew a sixteen year sentence in a federal pen for allegedly moving investment funds from a less risky to a more risky asset category. He is appealing, from prison, his conviction.
Now comes Wall Street:
Easy come, easy go. If you lose money in the next crash, it is because you did not care. But even then, just as they are as this story outlines, the rules get changed in the middle of the game, as when Chris Cox at the SEC outlawed shorting financials just before and short-sellers could realize a gain. The heart of the USA economy is profoundly corrupt. When you lose, do not join the masses trying to recover equity. You should be busy with your own business.
Now comes Wall Street:
Anyone who invested in less-risky funds did so with an understanding of the definition and risk parameters of the funds at the time of investment. But now BlackRock is changing the rules and risk parameters of those funds by exposing them to the counterparty risk of the riskier funds in the BlackRock fund complex which will be able to borrow money from the less risky funds.
This means that the Treasury fund in which your IRA or 401k is invested will now be “invested” in any fund that borrows money from the fund with your money. The risk profile of your “conservative” fund assumes the risk profile of the riskier fund. Because of this, there is absolutely no reason for anyone to leave any of their money in any of BlackRock’s funds.
Easy come, easy go. If you lose money in the next crash, it is because you did not care. But even then, just as they are as this story outlines, the rules get changed in the middle of the game, as when Chris Cox at the SEC outlawed shorting financials just before and short-sellers could realize a gain. The heart of the USA economy is profoundly corrupt. When you lose, do not join the masses trying to recover equity. You should be busy with your own business.
To me, this is the signal that everyone should call up their mutual fund company, financial adviser or 401k administrator and get all of their the money out of any mutual fund. Larry Fink has done everyone invested in any mutual fund a favor: he’s unwittingly signaled that it’s time to get out – now. Anyone who is aware of this and does not take action immediately is either a complete idiot or simply does not care about having their money taken from them by the criminal elite.Feel free to forward this by email to three of your friends.
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