1/ Outstanding op-ed by Brett Swanson @entropyecon
A few excerpted zingers in this THREAD…
wsj.com/articles/big-t…
A few excerpted zingers in this THREAD…
wsj.com/articles/big-t…
2/
-“Index funds exist because security prices are nearly impossible to predict. So if expert computer modelers can’t yet predict temperatures in a single complex realm—climate—how can we take seriously BlackRock’s triple extrapolations of the climate, the economy and finance?”
-“Index funds exist because security prices are nearly impossible to predict. So if expert computer modelers can’t yet predict temperatures in a single complex realm—climate—how can we take seriously BlackRock’s triple extrapolations of the climate, the economy and finance?”
3/
“Who wants to bet BlackRock, which just won a first-of-its-kind approval to operate in China, won’t force every Chinese firm to submit to Mr. Fink’s climate vanities in the name of fiduciary risk management, or even saving the planet?”…
“Who wants to bet BlackRock, which just won a first-of-its-kind approval to operate in China, won’t force every Chinese firm to submit to Mr. Fink’s climate vanities in the name of fiduciary risk management, or even saving the planet?”…
4/
“When information is debated and decision-making is dispersed, we get little mistakes and quick error-correction. But when today’s hyper-giants impose single answers that turn out to be wrong the mistakes can be catastrophic. “
“When information is debated and decision-making is dispersed, we get little mistakes and quick error-correction. But when today’s hyper-giants impose single answers that turn out to be wrong the mistakes can be catastrophic. “
5/
“In the past, large firms might have exerted market power. But today, hyperscale digital and financial platforms have access to, and can manipulate, information at governmental scale. They can also impose rules in a broader way than ever before…”
“In the past, large firms might have exerted market power. But today, hyperscale digital and financial platforms have access to, and can manipulate, information at governmental scale. They can also impose rules in a broader way than ever before…”
6/ Consider the world’s largest financial firm, BlackRockIt with $9 trillion under management—mostly in passive index funds. Along 2/ its 2 closest rivals has around 25% voting control over most publicly traded co’s
imposing the climate beliefs of its CEO over much of the economy
imposing the climate beliefs of its CEO over much of the economy
7/ In his 1974 Nobel Prize lecture Hayek explained why this top-down “pretense of knowledge” is so dangerous— information is too voluminous, diffuse and dynamic for central authorities to plan the economy successfully…
8/ Even the world’s smartest people and most competent governments don’t possess enough knowledge to micromanage sprawling complex systems. Instead, a diversity of opinion—in science, business and policy—helps us correct errors and climb the ladder of progress and truth…
9/ Govts were once chief impediments to free speech + free mkts
but huge private co’s may’ve become the greater danger
Who expects politicians to be honest + competent?
That’s what an open society is for
Truth + accountability = responsibility of a free press—and a free internet
but huge private co’s may’ve become the greater danger
Who expects politicians to be honest + competent?
That’s what an open society is for
Truth + accountability = responsibility of a free press—and a free internet
• • •
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