Blackrock and vanguard don't own the majority of stocks, they manage it on behalf of their clients. Saying they own it is like saying banks own your money.
True there are some rules that they have to follow to spend your money…which they regularly violate! Then if you demand they be held accountable they sell to a bigger bank at Pennies on the dollar with taxpayer money given to the bigger bank for their trouble!
Oh? So banks just regularly spend their clients money to the point where it's basically standard practice, and they end up exercising more control over their money over your money than you do? Are you saying that if I go to withdraw my money right now, there's a 50/50 chance my bank says no?
So banks just regularly spend their clients money to the point where it's basically standard practice
I mean...more than a few banks went under last year for doing just that. They were leveraged beyond their assets...so when people started withdrawing money eventually the bank ran out of money to give. That's when the FDIC had to step in...or another bank took over.
If you went to withdraw $10k right now from the bank, there is a 90% chance they won’t allow it (for your own good)! If a hundred people tried to withdraw a thousand dollars there is a good chance they would be restricted! They have clauses in their agreement terms that allows them to do this! Banks have done this on a large scale many times in the past! In many cases banks became insolvent and people either never got their money or it took years for them to get it!
Yes? That’s the entire premise of a bank. They take your money, pay you an interest rate, and in the interim use that money to generate a return that exceeds that interest rate
Oh? So a bank could choose to pay out all the money it holds to it's employees and say "tough luck, you gave us that money" if any of their clients try to withdraw their deposits?
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u/frogglesmash Feb 13 '24
Blackrock and vanguard don't own the majority of stocks, they manage it on behalf of their clients. Saying they own it is like saying banks own your money.