The most recent podcast tackles BlackRock, backdoor bailouts, ETFs and the Fed’s MLF.
Bailing Out Wall Street, Sacrificing Main Street
The bank-owned Federal Reserve has been taking unprecedented actions of late propping up capital markets, corporations and banks in response to the economic impact of the Covid pandemic and the covert collapse of the financial system dating back to mid-2019. Among their recovery mechanisms has been the purchase of grouped market assets called Exchange Traded Funds (ETFs) managed under a no-bid contract with BlackRock, the world’s largest asset manager and ETF manager. Ellen discusses BlackRock’s place in the monetary stratosphere, the glaringly obvious conflict of interest and self-dealing in its arrangement with the Fed, and how this backdoor bailout has served Wall Street at the expense of Main Street. Then she talks with ETF scholar and expert Ryan Clements, who takes us on a deep dive into the mechanics of these super-large and unregulated funds, how they exploded on the scene, and what it means for the real economy. Meanwhile, America’s states and cities are struggling to address significant pandemic-driven budget shortfalls, for which the Fed has not been very helpful. Walt talks with economist Dr. Robert Hockett about how the Fed’s Municipal Liquidity Facility needs to be revised to enable real Main Street financial support.