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Why Did China Invite Blackrock's Larry Fink For Advice How To Manipulate Its Stock Market?

Tyler Durden's picture




 

While it is already common knowledge that China has thrown virtually everything at the market in order to halt the ongoing market crash, including arresting "malicious sellers", journalists, and suspicious hedge fund managers, blaming HFTs for daring to sell in addition to buy, and even making trading index futures practically impossible, perhaps the most interesting revelation showcasing China's desperation came from CNBC today which reported that the government recently invited none other than Mr. ETF himself, BlackRock CEO Larry Fink to "discuss the market situation there", or said otherwise: how to manipulate the market more effectively.

 

CNBC adds that, as expected, Fink "accepted the offer and traveled to China in the last part of August to meet with officials" and conveniently, if redundantly, reminds us that "the request for Fink's expertise comes amid a prolonged slide in the Chinese stock market that has sent shivers through the U.S. and Europe as well. Many of the Chinese government's efforts to prop up the falling market have been seen as ineffective."

What is not said in the above, but what is abundantly clear, now that the cat of Chinese market manipulation is out of the bag, is that with every other attempt to manipulate the market higher, China felt it incumbent to invite Larry Fink for his expertise.

But expertise in what? Because if the answer is "market manipulation" then it has far more profound consequences not so much for China, where the market is now a global farce (not to mention a tragedy to all those who are hopelessly underwater on their investments having listened to the government's urges, and buying stocks - with margin - on the way up, only to lose everything and more on the way down) but for the US.

Why? Because if Larry Fink has somehow become such a world-renowned authority on "market manipulation" that China feels compelled to ask for his advice, then it has huge implications for the US stock market where his BlackRock, the world's largest asset manager, is by far the most dominant presence thanks to its pervasive ETF products (products, whose fragility was revealed on the August 24 flash crash).

If so, one wonders are ETFs nothing more than "market manipulation" vehicles?

And more to the point, what exactly did Larry Fink tell China is the best way to manipulate its stock market higher, and the immediate follow up to that: how much of whatever it is that Larry told China to do, is BlackRock already doing in the US?

We ask because BlackRock's Rick Rieder, the company's Chief Investment Officer and Co-Head of Americas Fixed Income, just happens to be a member of the New York Fed's Investor Advisory Committee on Financial Markets, also known as the advisors to the NY Fed's Plunge Protection Team.

Which just happens to tie it all together: if BlackRock is advising China how to manipulate markets, it only makes sense that the same company will give comparable advice to the world's biggest hedge fund: the NY Fed.

So, we wonder, just how easy is it to FOIA the transcripts (not doctored minutes) of the last severael years of IACFM meetings where people such as these...

... were present, and discussing how to "boost" the US sttock market?

Finally, since the Fed has made its mission to boost the wealth effect for everyone through the stock market "portfolio channel" shouldn't the Fed just disclose already precisely how the market is being manipulated so that everyone can profit from a rigged stock "market" without risk, instead of just a select few, most-connected hedge managers and billionaires.

 

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Wed, 09/09/2015 - 14:51 | 6527780 Squid Viscous
Squid Viscous's picture

a lesson in Zio-zen?

Wed, 09/09/2015 - 14:51 | 6527789 markmotive
markmotive's picture

China is leading the world into a global recession.

http://www.planbeconomics.com/2015/09/china-could-lead-is-leading-global...

Wed, 09/09/2015 - 14:52 | 6527796 Squid Viscous
Squid Viscous's picture

no shit, sherlock!

Wed, 09/09/2015 - 14:55 | 6527810 Divided States ...
Divided States of America's picture

Stupid chinese, asking a jew for advice. Sum ting wee lee wong.

Wed, 09/09/2015 - 15:06 | 6527865 general ambivalent
general ambivalent's picture

The jew cries out in pain as he gives you bad stock advice.

Wed, 09/09/2015 - 15:08 | 6527875 Ms No
Ms No's picture

Speaking of which, we have a September 11th style freeway shooter operating in the Phoenix area now.  Here is the propaganda version..

http://www.msn.com/en-us/news/us/arizona-authorities-investigate-9-freeway-shootings/ar-AAe6apy?ocid=ASUDHP

Wed, 09/09/2015 - 15:36 | 6527958 Bokkenrijder
Bokkenrijder's picture

Another hole in the "China-will-introduce-a-gold-backed-Yuan" theory...

Keep on dreaming bitchezzz...

See also this video with Jim Rickards, fast forward to 14:40, and more specifically FF to 18:40 with Jim talking about the Chinese buying gold. https://www.youtube.com/watch?v=aJ8qPaRp8Ek

To sum it up here's a quote from Jim: "...people who naively think China is trying to help out gold investors. China is there to help China." (from 19:26)

China loves the fiat currency game as much as anyone else because faking things (Louis Vuitton bags, DVD's or running a printing press) and gambling is in their blood.

Wed, 09/09/2015 - 15:42 | 6528069 Consuelo
Consuelo's picture

 

 

Sprinkle some truths along the path of lies to keep your prey interested.   Jim Rickards does his intelligence agency master's proud...

Wed, 09/09/2015 - 16:56 | 6528483 ZerOhead
ZerOhead's picture

Yup... I was a little more heartbroken with Snowden and a little less heartbroken with Assange.

When it comes to the CIA there simply is no such thing as "former"...

Wed, 09/09/2015 - 15:13 | 6527895 38BWD22
38BWD22's picture

 

 

Perhaps BlackRock and China have more invested in each other than is well-known?

*   *   *

Agree, markmotive , China looks like the source of a lot of problems.  South America is taking a big hit from lower exports to China.

Wed, 09/09/2015 - 15:03 | 6527828 yrad
yrad's picture

It appears to me that there is simply a lack of Jewish-Chinese people. Am I right, or am I right?

Wed, 09/09/2015 - 15:38 | 6528041 Consuelo
Consuelo's picture

+1M

 

What happened to the legacy of Sun Tzu...?

Wed, 09/09/2015 - 14:51 | 6527790 KnuckleDragger-X
KnuckleDragger-X's picture

Sometimes you need a real pro........

Wed, 09/09/2015 - 14:57 | 6527826 NoDebt
NoDebt's picture

Yeah, pretty much thinking this is along the lines of the answer to the question "why is divorce so expensive?"

Because it's worth it.

Wed, 09/09/2015 - 15:15 | 6527911 negative rates
negative rates's picture

Funny thing about marriage, there's always something that's not work out. And it's your job to figure out was it is and how to manage it. Prolly why the place is going down the shitter too, no i'm certain of it.

Wed, 09/09/2015 - 14:59 | 6527831 Kayman
Kayman's picture

Wait a minute... wait... yes, here it is, in Mao's little Red book.  Chapter 13, just past Chapter 12 on how to kill your running dog parents. Yes, here it is, always be a glorious buyer, never a malicious seller. 

Wed, 09/09/2015 - 15:14 | 6527900 indygo55
indygo55's picture

I wonder what they paid him. A free penthouse apartment in a brand new city?

Trying to get at least SOMEONE to live there.

 

Wed, 09/09/2015 - 14:53 | 6527801 the grateful un...
the grateful unemployed's picture

the first rule about fight club is you dont talk about fight club

Wed, 09/09/2015 - 14:54 | 6527808 JJdog
JJdog's picture

Chinese don't like anything Black, or anything Rock.  Looks like Fink is a bad luck charm for the Chinese stock market

 

Wed, 09/09/2015 - 14:56 | 6527819 stant
stant's picture

Why? Because the brilliant Larry summers was to negative for them.

Wed, 09/09/2015 - 14:59 | 6527830 Squid Viscous
Squid Viscous's picture

He asked for more shekels than any of the other jew experts...and DEMANDED a private jet

Wed, 09/09/2015 - 15:02 | 6527848 Kayman
Kayman's picture

But did he ask for (another) donation to the Clinton Foundation ?

Wed, 09/09/2015 - 15:02 | 6527849 HeavydutyMexica...
HeavydutyMexicanOfTheNorthernKingdom's picture

Fink went to China and talked his book.  

Wed, 09/09/2015 - 15:06 | 6527866 Squid Viscous
Squid Viscous's picture

exactry, what else would a greedy kike do?

Wed, 09/09/2015 - 15:04 | 6527859 JustObserving
JustObserving's picture

shouldn't the Fed just disclose already precisely how the market is being manipulated so that everyone can profit from a rigged stock "market" without risk, instead of just a select few, most-connected hedge managers and billionaires.

It's a big club and you are too tiny to belong to it.  Keep watching football, serf.  

Wed, 09/09/2015 - 15:11 | 6527887 Keyboard Kommando
Keyboard Kommando's picture

A Jew named Fink, very poetic!

Wed, 09/09/2015 - 15:11 | 6527889 PrimalScream
PrimalScream's picture

HECK ... if all else fails ...

WHY NOT let the Shanghai market trade freely????????

Wake Up, China.  A free market is your best possible choice.

Wed, 09/09/2015 - 15:15 | 6527908 jcdenton
jcdenton's picture

The real question I want to ask, is why not Jack Lew? Is it because they don't want another replay of Paulson?

http://wantarevelations.com/2014/01/wanta-plan-macro-financial-economic-...

 

BTW, Lew was informed:

 

From: Ambassador Lee Emil Wanta

Sent: Sunday, January 26, 2014 4:07 PM

Cc: U.S. SECY TREASURY_JACK LEW

Subject: Austrian Inland Tax Resident_New Republic/USA Financial Group, Ltd. Gesellschaft, Wien, Austria_A-1010

Wed, 09/09/2015 - 15:18 | 6527923 Seasmoke
Seasmoke's picture

Surely they expect him to live up to his Tribe given name. 

Wed, 09/09/2015 - 15:18 | 6527924 vote_libertaria...
vote_libertarian_party's picture

Larry will tell them the junk stocks are like junk MBS.  When you bundle them together, like in an ETF, they become AAA rated.

Wed, 09/09/2015 - 15:20 | 6527937 Downtoolong
Downtoolong's picture

 

Most likely it was some of Black Rock’s ETF’s that were “Shorting The Shit Out Of The SHCOMP”.

 

I’m guessing Larry didn’t discuss that at the meeting.

  

Wed, 09/09/2015 - 15:22 | 6527946 gwar5
gwar5's picture

Why? Because he's a Fink. It's in the name. In Mandarin it's 'FingK'.

Wed, 09/09/2015 - 15:26 | 6527974 10mm
10mm's picture

Rat Fink.

Wed, 09/09/2015 - 15:30 | 6527980 q99x2
q99x2's picture

World Headlines: President Xi Jinping of China surrenders to the NWO and Lloyd Blankfein.

Wed, 09/09/2015 - 15:46 | 6528092 FightingtheFed
FightingtheFed's picture

Call a Jew to teach you how to manipulate the financial markets.. Interesting.

 

They sure have a lot of practice at it.

Wed, 09/09/2015 - 15:46 | 6528095 bilbert
bilbert's picture

Did Larry perchance, swing by Japan yesterday?

 

Nikkei up 1,343??   Are you fucking kidding me??

Wed, 09/09/2015 - 15:47 | 6528101 Kasperfx
Kasperfx's picture

who thinks the EXPLOSIONS had something to do with china's latest moves 

Wed, 09/09/2015 - 15:48 | 6528108 rosiescenario
rosiescenario's picture

China shows its intelligence in drawing from our pool of all star crony capitalists...they might also want to get a few others to chip in....we have more than enough to share with them.

Wed, 09/09/2015 - 15:56 | 6528177 Amish Hacker
Amish Hacker's picture

They love the guy because the Chinese characters for "Larry Fink" also mean, "The fix is in."

Wed, 09/09/2015 - 16:00 | 6528202 richiebaby
richiebaby's picture

"Meestah Phink, wat do you mean we sort ourselves?" 

 

Wed, 09/09/2015 - 16:16 | 6528315 DrNybble
DrNybble's picture

Why does China want to do a better job of manipulating their market???
That's a damn silly question.

Wed, 09/09/2015 - 16:20 | 6528346 skippy9
skippy9's picture

Any asshole that is dumb enough to invest in a country that killed 50 million of its people deserves to lose everything. It doesn't matter because the lunatic running free in our White House has managed to do the same to us via Iran deal supported by 48 scum bags that are scared shitless of the BLACK MENACE in America.

Wed, 09/09/2015 - 16:57 | 6528533 Spungo
Spungo's picture

Nice hair style, cunt.

Wed, 09/09/2015 - 20:23 | 6529278 chinaboy
chinaboy's picture

Part of the cheating game involves top poker faces read each other's cards. I don't have access to the poker faces. what about you? 

Wed, 09/09/2015 - 22:25 | 6529689 bid the soldier...
bid the soldiers shoot's picture

I wasn't at the meeting between Fink and the Chinese, either.  But here's my take.

Everybody knows that in November 2014, the Shanghai Exchange relaxed and let foreign firms (read Goldman Sachs, et alia) buy shares for foreign clients.

The Shanghai index was at about 2300 a post 2008 high at the time.  7 or 8 months later the index hit 5100 and margin debt quadrupled. 

Goldman Sachs make money the Old Fashioned Way

They manipulate it.

 

The Wall Street Journal put out the story that 40,000,000 Chinese farmers moved into the market ON MARGIN.

Goldman et al opened a lot of fictitious accounts and borrowed from Chinese lenders and moved the market up almost 3000 points.  

Then they began to short the stocks in fictional accounts; stocks they had been buying in other fictional accounts.  Then they started to sell their long positions.  

Then the Chinese suspended trading in half the listed stocks

No one, not even Tyler himself, knows how much of Goldman's capital is tied up in Shanghai.  But considering the initial increase in margin debt on Shanghai's exchange, it's probably a very large number.

 

Enter Larry Fink.

Could it be that Fink was invited to Shanghai to carry a message back to Lloyd Blankfein?

"You will agree to getting busted out of the following trades, and we will take the hold off of your yuan."  

Wed, 09/09/2015 - 23:20 | 6529891 StarSoul
StarSoul's picture

The entire chinese story was created by the elites and now they taking it down...for the shadow rulers of this world...bringing the world to destruction is like walk in the park..

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