BlackRock's Fink Prefers U.S. Dollar for Protection of Wealth
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I wonder if he prefers drinking water from a lake thats next to a nuclear power plant for health.
BlackRockâs Fink Says Dollar Still Best for Long Term (Update1)
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http://www.bloomberg.com/apps/news?pid=20601087&sid=aLZMqIMQ2Ys0
By Erik Schatzker and Caroline Salas
Sept. 17 (Bloomberg) -- Laurence Fink, chairman and chief executive officer of BlackRock Inc., said the U.S. dollar remains the best currency for investors seeking to protect wealth.
âI still believe it is the best place to be if you have a large pool of money,â Fink, who is poised to head the worldâs biggest money manager when BlackRock completes its purchase of Barclays Global Investors this year, said today in an interview. Compared with the euro, Japanese yen and U.K. sterling, âI choose the dollar.â
The credit crisis and concern the U.S. is borrowing too much to end it have eroded confidence in the dollar and reduced demand for the relative safety of U.S. assets. China, India, Brazil and Russia this year called for a replacement to the dollar as the main reserve currency after the collapse of the U.S. mortgage market triggered to the worst global recession since World War II.
The Dollar Index, which tracks the U.S. currency against the euro, yen, pound, Canadian dollar, franc and Swedish krona, sank as low as 76.010 today, the weakest level since Sept. 22, 2008. The gauge dropped about 15 percent from its 2009 high of 89.624 reached in March as investors sought refuge from the financial crisis in the worldâs main reserve currency.
If the U.S. does not âtackle our deficits, if we donât tackle our economic situations in a comprehensive way,â someday âthere might be other reserve currencies they will use,â Fink said. Still, a weaker dollar will help the U.S. economyâs âhealing processâ by boosting exports, he said.
âI think exports will drive a lot more of this economy, and through that weâre going to see sustainable growth,â Fink said.
To contact the reporters on this story: Erik Schatzker in New York at eschatzker@bloomberg.net; Caroline Salas in New York at csalas1@bloomberg.net
Last Updated: September 17, 2009 13:09 EDT
Share | Email | Print | A A A
http://www.bloomberg.com/apps/news?pid=20601087&sid=aLZMqIMQ2Ys0
By Erik Schatzker and Caroline Salas
Sept. 17 (Bloomberg) -- Laurence Fink, chairman and chief executive officer of BlackRock Inc., said the U.S. dollar remains the best currency for investors seeking to protect wealth.
âI still believe it is the best place to be if you have a large pool of money,â Fink, who is poised to head the worldâs biggest money manager when BlackRock completes its purchase of Barclays Global Investors this year, said today in an interview. Compared with the euro, Japanese yen and U.K. sterling, âI choose the dollar.â
The credit crisis and concern the U.S. is borrowing too much to end it have eroded confidence in the dollar and reduced demand for the relative safety of U.S. assets. China, India, Brazil and Russia this year called for a replacement to the dollar as the main reserve currency after the collapse of the U.S. mortgage market triggered to the worst global recession since World War II.
The Dollar Index, which tracks the U.S. currency against the euro, yen, pound, Canadian dollar, franc and Swedish krona, sank as low as 76.010 today, the weakest level since Sept. 22, 2008. The gauge dropped about 15 percent from its 2009 high of 89.624 reached in March as investors sought refuge from the financial crisis in the worldâs main reserve currency.
If the U.S. does not âtackle our deficits, if we donât tackle our economic situations in a comprehensive way,â someday âthere might be other reserve currencies they will use,â Fink said. Still, a weaker dollar will help the U.S. economyâs âhealing processâ by boosting exports, he said.
âI think exports will drive a lot more of this economy, and through that weâre going to see sustainable growth,â Fink said.
To contact the reporters on this story: Erik Schatzker in New York at eschatzker@bloomberg.net; Caroline Salas in New York at csalas1@bloomberg.net
Last Updated: September 17, 2009 13:09 EDT
I wonder why he says the dollar is best for wealth protection
http://www.pionline.com/apps/pbcs.dll/article?AID=/20090330/REG/903309997/1009&template=printart
I guess when you are "DC's go-to guy on Wall Street" as the article says, you do alot of back scratching for each other.
http://www.pionline.com/apps/pbcs.dll/article?AID=/20090330/REG/903309997/1009&template=printart
I guess when you are "DC's go-to guy on Wall Street" as the article says, you do alot of back scratching for each other.
Hum. I disagree 100 %.
What is very disturbing is that firms such as BlackRock
.....ie today CEO Fink on Bloomberg was discussing his
importance of not utilizing public means to
discover prices on an exchange as such....particularly
fixed income securities....
Fink did not seem to have a clue ....as his firm
manages over $2 Trillion...that he is really asking
the SEC if it is ok to "privatize" price discovery
of public securities....
This is an incredible violation of what a public
exchange and its securities is all about....
All in the open....first come....first served....
low cost direct access exchange ....which all but
eliminates additional middlemen pricing....
BlackRock has a problem...its size....it has to buy
so much of a security that it is almost impossible to
buy or sell it without dramatically affecting its
price...
Well...hello...who said BlackRock should be able to discover prices in its own house....?
This privatizing public products...
Whereas Fink's real problem is making the fixed income
side transparent....
All that needs to happen is for the exchanges to
be de-fragmented....and have the BATS business model
implemented as the proper public exchange....
All securities would have to go through price discovery
via BATS....which in turn would be very low cost....
Perhaps 20 cents per 100 units....
An exchange is just software that changes the name
of ownership electronically by time stamp....
One of the few high markup products left for
brokerages is esoteric fixed income....the
problem being that prices are not properly
discovered on a BATS type exchange....
The solution is simple....
A first come....first served direct access electronic
exchange whereby all buyers and sellers of
public securities discover public prices....
No internal matching...no dark pools....
One venue for all public securities...
The BATS model....
Which would de-fragment all exchanges....and
offer a true venue for public products....
Firms such as BlackRock should have to go through
price discovery as anyone else....
For brokerage firms the game has forever changed
via direct access electronic exchanges....
Brokerages need to focus on management....and IB's need
to focus on making private companies public....
The highest performances will be given by small not large pools....because the price that they currently see
will be the one they get....
Another issue for the large pools is paying on
performance prior to full liquidation....
Stocks could go up or down big.....whereby the
performance fees paid could be far off the mark.
.....ie today CEO Fink on Bloomberg was discussing his
importance of not utilizing public means to
discover prices on an exchange as such....particularly
fixed income securities....
Fink did not seem to have a clue ....as his firm
manages over $2 Trillion...that he is really asking
the SEC if it is ok to "privatize" price discovery
of public securities....
This is an incredible violation of what a public
exchange and its securities is all about....
All in the open....first come....first served....
low cost direct access exchange ....which all but
eliminates additional middlemen pricing....
BlackRock has a problem...its size....it has to buy
so much of a security that it is almost impossible to
buy or sell it without dramatically affecting its
price...
Well...hello...who said BlackRock should be able to discover prices in its own house....?
This privatizing public products...
Whereas Fink's real problem is making the fixed income
side transparent....
All that needs to happen is for the exchanges to
be de-fragmented....and have the BATS business model
implemented as the proper public exchange....
All securities would have to go through price discovery
via BATS....which in turn would be very low cost....
Perhaps 20 cents per 100 units....
An exchange is just software that changes the name
of ownership electronically by time stamp....
One of the few high markup products left for
brokerages is esoteric fixed income....the
problem being that prices are not properly
discovered on a BATS type exchange....
The solution is simple....
A first come....first served direct access electronic
exchange whereby all buyers and sellers of
public securities discover public prices....
No internal matching...no dark pools....
One venue for all public securities...
The BATS model....
Which would de-fragment all exchanges....and
offer a true venue for public products....
Firms such as BlackRock should have to go through
price discovery as anyone else....
For brokerage firms the game has forever changed
via direct access electronic exchanges....
Brokerages need to focus on management....and IB's need
to focus on making private companies public....
The highest performances will be given by small not large pools....because the price that they currently see
will be the one they get....
Another issue for the large pools is paying on
performance prior to full liquidation....
Stocks could go up or down big.....whereby the
performance fees paid could be far off the mark.