Fund managers such as BlackRock, Vanguard, State Street and Fidelity are the new players of the financial world: they are not locusts, instead each one is a Tyrannosaurus Rex. They emerged after the last financial crisis of 2007 and are neither banks nor hedge funds and flourish in a practically regulation free zone. They can also best be described as shadow banks.
They have at their disposal an insurmountable amount of buying power, which they have accrued from a variety of sources and purchase shares in banks, investment funds and Industry. In Europe little is known about their activities. In Argentina, the population is oblivious to their machinations. There they can cast an eager look at anything above or below the soil. The country seems to be an experimental laboratory.
As to the reasons, why BlackRock and Templeton helped Macri in May 2018, was not reported in the mainstream media. Obviously this was not a charitable act. It was rather a thank you for the legislative decree no. 29, in which the government assured its creditors, that in the event of a repeated insolvency, not to object to the seizure of natural resources that has been put up as collateral.
The Argentine Left still has no awareness for the modern dinosaur knocking at the door. Their object of hate is the IMF. This is palpable. The previous government had evicted them. Under the present regime, they have opened an office in the central bank in Buenos Aires. From here they give recommendations regarding “fiscal discipline”. Macri has not yet implemented all the imposed austerity measures. After all, there will be elections in October. To date, half of the children live in poverty or extreme poverty. Even the middle class finds it difficult to survive economically.
The new players in the financial markets have taken over monetary policy. No one regulates them, neither national governments nor the Public.