An Inadvertent Warning From BlackRock – Get Your Money Out Of Mutual Funds ASAP

SITUATION HOPELESS, BUT NOT SERIOUS

Your keepers will not be warning you before the collapse. They will be taking actions behind the scenes to protect their wealth, while throwing you under the bus. Obama and your corrupt congresscritters will demand that you bail out the .1% to preserve your way of life. Will you allow it to happen again? Or will you string up the perpetrators from lampposts? The great reset is coming. Social disorder, chaos and civil strife are just over the horizon. Are you prepared?

 

Via Investment Research Dynamics,

BlackRock Inc. is seeking government clearance to set up an internal program in which mutual funds that get hit with client redemptions could temporarily borrow money from sister funds that are flush with cash.  – Bloomberg News

We may have been early on warning about leaving your savings in the financial system. It’s okay to be too early getting your money out of the system but it’s fatal to be just one second too late.  The gates are already in place in money market funds just waiting for the signal to be lowered

BlackRock’s filing with the SEC to enable “have cash” funds to lend to “heavy redemption” funds should send shivers down the spine of anyone with funds invested in any BlackRock fund.  In fact, it should horrify anyone invested in any mutual fund.

Larry Fink, BlackRock’s chief executive officer, said in December that U.S. bond funds face increased volatility, adding that he expected a “dysfunctional market” lasting days or even weeks within the next two years.   – Bloomberg

I warned last summer when the money market funds received authorization to put redemption gates in place that it was time to remove your money from these instruments.  The only reason a gate would be needed is if the people running the funds believed that there were risk events coming that would necessitate the gates.

BlackRock has already arranged credit lines from banks to cover the possibility of a redemption stampede from its riskier funds.  It’s clear the elitists running BlackRock now foresee events coming that will trigger a redemption run because the fund company is seeking SEC approval for the ability to take cash from funds with cash and lend that cash to funds that will need cash when the redemption rush begins.

Rather than let the market decide the value of the investments in BlackRock’s riskier funds, Larry Fink is going add even more leverage to the equation by enabling riskier funds to take on debt in order to avoid having to sell positions into a market that won’t be able to handle the selling.   This adds yet another layer of fraudulent intervention to a system that is ready to blow up from what’s already been done to it.

And let’s not forget, as I pointed out last summer, that BlackRock funds are already riddled with OTC derivatives, which is why Vice Chairman Barbara Novick has been running around Capitol Hill working to get a bailout mechanism in place for the Depository Trust Company’s derivatives clearing unit.

BlackRock Changes The Rules Of The Game Because Of An Outcome It Fears

This move will, in effect, transfer a portion of the risk of BlackRock’s riskier mutual funds – derivative-laced high yield and equity funds – to its more “conservative” funds, like high grade, short duration fixed income funds.

BlackRock

Anyone who invested in less-risky funds did so with an understanding of the definition and risk parameters of the funds at the time of investment.  But now BlackRock is changing the rules and risk parameters of those funds by exposing them to the counterparty risk of the riskier funds in the BlackRock fund complex which will be able to borrow money from the less risky funds.

This means that the Treasury fund in which your IRA or 401k is invested will now be “invested” in any fund that borrows money from the fund with your money.  The risk profile of your “conservative” fund assumes the risk profile of the riskier fund. Because of this, there is absolutely no reason for anyone to leave any of their money in any of BlackRock’s funds.

The SEC should deny BlackRock’s filing.  But it won’t because Wall Street is the SEC.

This move by BlackRock also signals that the elitists at BlackRock foresee an event that will disrupt the markets and trigger “bank” run on mutual funds.  What or when is anyone’s best guess.  But the fact that Larry Fink has decided to implement internal lending among funds indicates that he and his band of merry criminals believe an event will happen sooner rather than later.

To me, this is the signal that everyone should call up their mutual fund company, financial adviser or 401k administrator and get all of their the money out of any mutual fund.  Larry Fink has done everyone invested in any mutual fund a favor:  he’s unwittingly signaled that it’s time to get out – now.   Anyone who is aware of this and does not take action immediately is either a complete idiot or simply does not care about having their money taken from them by the criminal elite.

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Bea Lever
Bea Lever

And after all of American’s money in mutual funds VAPORIZE, people like Larry Fink will say “We never saw this coming”. If you are not out of the rigged casino……….get the fuck out now.

bb

Situation hopeless , but not Serious.That about sums it up.Scary thing is 90% of the population Will be unprepared.I would like to have more time to buy some other materials for my doom castle.

kokoda
kokoda

Nora…..leave and don’t return.

seth fox
seth fox

Every Mutual Fund is it’s own “Investment Company” and has it’s own prospectus outlining its fiduciary responsibility to its shareholders. In most prospectus’ it is stated that Investment companies can purchase shares in other Investment companies meaning they already have the ability for one fund (flush with cash reserves) to purchase another fund (low on cash in net redemptions). Finally, most funds also have a “redemption in kind” clause stating that if markets are illiquid, they can issue shares of the underlying securities to the redeemer instead of cash. In many ways although it seems contrary, this is a benefit to shareholders versus receiving illiquid valueless shares that they are forced to register, hold, and find a market for.

Also, borrowing money for redemptions is nothing new…this company has been around for a while
http://reflow.com/index.html

Have a look at their prospectus for their “most conservative” funds and I think you will see that they are pretty wide open to invest in basically anything they want.

IMO all this article is discussing is the Funds ability to lend/borrow fund to fund as opposed to Buy/Sell shares fund to fund, and to do so internally versus using a 3rd party such as Reflow.

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