Tag Archives: markets

BlackRock Misses Again

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The Woke BlackRock, and especially its CEO Larry Fink, are not just wide of the mark, they’ve missed the target altogether. Not only does the company push its intrinsically racist and sexist “diversity, equity, inclusion” ideology onto those companies in which it invests—often for the sole purpose of the push; investment quality being irrelevant—now it’s been caught out applying its racism and sexism in its internal hiring practices.

America First Legal Foundation sent a letter Tuesday to the New York District Office of the Equal Employment Opportunity Commission to demand an investigation into the asset management giant for allegedly “engaging in unlawful employment practices in violation of Title VII of the Civil Rights Act of 1964.”
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“This program is just one piece of a long-term practice of BlackRock to use unlawful discriminatory employment practices to build its workforce,” the complaint stated. “Indeed, BlackRock has affirmatively and repeatedly represented to its shareholders, to its investors, and to the Securities and Exchange Commission, that its employment practices are infused with facially unlawful considerations of race, color, sex, and/or national origin.”

AFL added in a separate communication,

The odious and illegal practice of hiring based on immutable characteristics like race is a flagrant attack on civil rights that harms all Americans[.]

I’ll go further: it’s an insult to those minorities and women; BlackRock and Fink are saying that minorities and women are intrinsically inferior, inherently too stupid, to be able to compete without the special treatment and coddling that is preferential, DEI-based hiring.

There’s no doubt that there remains a disparity, especially in STEM environments, between white hiring into good-paying jobs and minority and women hiring into those jobs. But that disparity won’t be cured by preferentially hiring minorities and women; they still too often aren’t qualified for the positions, so they fail and set the program, and the hiring company, back.

The correction for the disparity lies in a factor that’s at the foundation of our nation: equal opportunity. That equality of opportunity doesn’t currently exist in our education system (among other milieus); see for a canonical example, the Baltimore, MD, school system’s failure and subsequent coverup by those responsible.

If BlackRock and similar entities put the money and energy they’re currently committing to push wokeness into improving our educational system (without the Woke…foolishness) and getting our children taught—from pre-K through high school—science, technology, engineering, and math, along with American history, Civics (and more of this than a single semester in junior high), Western Civilization, logic, and literature, with equal emphasis on inner city schools and wealthy district schools, those disparities would disappear in a generation.

 

The letter itself can be read at the first link above.

Ignore Them

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The People’s Republic of China’s latest weapon in its economic war against the West, and against the United States in particular, is to slow-walk merger approvals on anti-trust grounds when either party to the merger, or its result, does or would do business within the PRC.

As preconditions for approving some of the transactions, the people said, officials at the State Administration for Market Regulation, China’s antitrust regulator known as SAMR, have asked companies to make available in China products they sell in other countries—an attempt to counter the US’s increased export controls targeting China.
The Chinese demands could put US companies in an impossible position as Washington has enacted legislation restricting American companies’ ability to sell to China and expanding certain types of production there.

And this, especially [emphasis added]:

For multinationals, it doesn’t take much for a merger to trigger a Chinese antitrust review. For instance, if two companies in a deal have revenue of more than $117 million a year from China, the merger needs Beijing to sign off.

This is an easy enough conundrum to solve. The two companies, along with the merged result, could simply stop doing business within the PRC and with businesses domiciled within the PRC, rendering that nation’s slow-walk irrelevant from the PRC’s lack of standing to object.

Companies should already be stopping doing business inside the PRC or with businesses domiciled in the PRC, so a merger agreement that asserts “no business to be done in the PRC” seems completely straightforward.

Studying for the Test

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Instead of studying the material. In a Monday Wall Street Journal op-ed, Michael Faulkender and Tyler Goodspeed, University of Maryland Finance Professor and Fellow at Stanford University’s Hoover Institution, respectively, wrote about bank stress tests and their resulting uniformity of banks’ risk management techniques. Citing a Boston Federal Reserve study, they noted that

banks that performed poorly on the mandated Dodd-Frank stress tests subsequently adjusted their portfolios such that they more closely resembled the portfolios of banks that performed well. The average institution’s portfolio is more diversified, but the system is more uniform. By requiring all of the biggest financial institutions to adhere to the same measures, pass the same tests, and follow the same practices, America has lost diversification in the entire banking sector.

Dodd-Frank, in essence, required individual banks to do better at diversifying their individual portfolios. But that business of all of them having to pass the same test means that all the banks have much the same portfolios, diversified over much the same instruments.

This is the complement of teaching the test rather than teaching the material and then testing that knowledge. Banks are (regulatorily pushed into) learning the test rather than learning the material and then acing the test.

Uniformity is dangerous for species in a biological ecology, and uniformity is dangerous for categories of businesses in an economical ecology.

Mistake

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Treasury Secretary Janet Yellen wants to extend the Federal government’s intrusion into our banking system.

Our intervention was necessary to protect the broader US banking system. And similar actions could be warranted if smaller institutions suffer deposit runs that pose the risk of contagion[.]

No, it wasn’t. No, it would not be.

Businesses thrive or fail on their managers’—individual Americans acting in concert with other individual Americans—performance or failure to perform. We individual Americans thrive, or not, on our own decisions, made out of our own obligations and determination to get ahead.

It isn’t government’s job to inure us individual Americans or our businesses from the vagaries of the marketplace or—especially—from our own poor decision-making. It’s government’s job to create and enforce a framework within which our free market can operate freely, and within which personal responsibility, whether as individuals or as business managers, can operate freely.

If our decisions are without consequence, we are neither operating freely nor in accordance the requirements of our personal responsibility.

Balancing Act

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That’s what conventional “wisdom” says confronts the government of Australia as it contemplates buying nuclear-powered submarines from the US. The buy is part of AUKUS’ combined effort to counter the People’s Republic of China’s military buildup and its continued strengthening of the PLA in the PRC’s occupation of the South China Sea.

Australia is trying to strike a balance between its close relationship with the US and its ties to China, which buys much of its valuable iron ore and is its largest trading partner.

There’s nothing to balance here. There are lots of nations, all over the world, with an interest in buying Australian iron ore, Australia’s iron processed from that ore, such steel as Australia chooses to produce. There is a wide world of existing and potential trading partners for Australia’s other goods and services. Shipping need not be that expensive, either: the nations metaphorically next door that rim the South China Sea, the Republic of China, the Republic of Korea, and Japan all have need of iron ore and iron and are interested in the plethora of additional goods and services that Australia might sell.

Australia has no need of the PRC’s market, and the sooner it divests itself, the sooner it will shake its dependency on and pressure from the PRC.