re: BlackRock suffered $1.6 trillion in losses in 6 months

It’s not hard to understand if you know how the equity markets are structured. There’s no liquidity because there is inelastic demand for shares that are increasingly scarce. Mostly due to retirement flows and buybacks creating a self feedback loop that shits down active funds for passive funds. Vanguard did a rebalance in their largest retirement target date fund in 2014 out of US equities and into EM equities. Wall Street woke up to blue chip equities trading at $0 because there was no market for that many shares at once. There are other examples including in Shanghai when their “markets” were limit up for weeks every single day and then it crashed to $0 all at once when the first person hits sell.

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Wall Street woke up to blue chip equities trading at $0 because there was no market for that many shares at once.

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just no

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There’s no liquidity because there is inelastic demand for shares that are increasingly scarce.

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I agree that equity markets are thinner and more brittle than we used to be used to.

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Wall Street woke up to blue chip equities trading at $0 because there was no market for that many shares at once.

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Sorry, but no. "Blue chip" names did not trade from tens/hundreds of billions of market cap to 0. Ever.

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ETA- even Southern Company has a higher score than Tesla, and they literally burn coal for a living.

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THEY HAVE BOUGHT UP PARTS IF NOT ALL OF SUBDIVISIONS IN MAJOR CITIES TO RENT TO FAMILIES WHO WILL LOSE THEIR HOUSES IN COMING RECESSION....

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WTF does that even mean? Lose their houses to...rental landlords?

Also, BlackRock owns about 80K homes in total - out of like 120 million or more.

Just take this conspiracy nonsense and move it on down the line.

Other shareholders who believed the market price at $0 was below the intrinsic value of the shares

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Other shareholders who believed the market price at $0 was below the intrinsic value of the shares

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I see what you are saying. And agree. I think the others are forgetting shareholders are the last to get paid. (book value != market cap). And they are looking for a $0 trade on the ticker history.


EDIT: There it is!

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Please link to any news from 2014 reporting this "zero" event of yours.

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WSJ - Storytelling of a Flash Crash

Sorry my beez. I'm conflating the german bund crash related to Citadel trading derivatives. You're entire melt has been extremely delicious because of 1) how unfounded it is in the facts of the modern day structure of the markets from a supply and demand perspective and 2) It takes 0 intellectual capacity to understand as this phenomena has happened in HY and IG bonds and treasuries all within the past 2 years setting off the largest stimulus package in human history to stop the daisy chain from unwinding. All 10 years after doing the same thing and regulating away the same risks

If you want another example of the logical conclusion without government intervention look up the unwinding of XIV.

To NC and TA thank you for just asking questions like normal people instead of calling me crazy

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There are other examples including in Shanghai when their “markets” were limit up for weeks every single day and then it crashed to $0 all at once when the first person hits sell

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Why don't we get a link to this made-up event also, while you're at it?

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The flash crash is one example of a blue chip having no bid. Continue melting it’s delicious.

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You can make up all the fake news you want, but blue chip stocks literally never traded at $0.