Yoda’s secret to relaxation during the Greek Tragedy Crisis!
Yoda says: “What, me worry?”
CIGA Dr. Dave.
This is really big. If this doesn’t add fuel to the fire of liquidations, I don’t know what will. Not because of the threat of an equity market meltdown, but because people now no longer know what they purchased!
When you put your money in "safe haven" funds like short term debt, you never in a million years expect to be exposed to equities and more importantly, derivatives!
"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.’
‘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."
There’s not even fine print to mislead you, much less outright disclosure.
Perhaps this 4th of July will provide a different kind of fireworks.
CIGA Wolfgang Rech
An Inadvertent Warning From BlackRock – Get Your Money Out Of Mutual Funds ASAP
Submitted by Tyler Durden on 06/29/2015 11:00 -0400
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
Negative systemic crisis usually blindsides most people. This time is no different.
Who could’ve guessed? Dollar hammered on global flight to safety?
My oh my. This ought to change the thinking of many.
CIGA Wolfgang Rech
You know that things are bad behind the scenes when China comes to the rescue of the West.
The only thing I can think of that China fears most is a $1.4 quadrillion derivative meltdown taking down the entire global financial system.
If you think otherwise, I would love to hear it.
CIGA Wolfgang R.
Nobody, China included, wants to see a full meltdown here.
China says wants Greece in euro zone, pledges EU infrastructure investment
Mon, Jun 29, 2015, 11:32AM EDT
BRUSSELS (Reuters) – China’s Premier Li Keqiang said on Monday he wants to see Greece remain in the euro zone and promised that Beijing would make investments in the European Union’s new infrastructure fund.
"It is in China’s interest. We would like to see Greece staying in the euro zone and we urge the international creditors to reach an agreement with the Greek side," Li told business leaders at a conference in Brussels before an EU-China summit.
He also pledged Chinese investment in the EU’s new 315 billion euro infrastructure plan launched by European Commission President Jean-Claude Juncker, as well as saying Beijing would buy European Investment Bank bonds.