Laurence Fink is set to speak at the New York Times DealBook “Opportunities for Tomorrow Conference.” The Chairman and C.E.O. of BlackRock Inc. (NYSE:BLK) is expected to talk about the bubble markets that he sees across the financial industry today. The executive thinks that the Federal Reserve QE policy has inflated some of the financial markets and led the world economy to a dangerous place.
Fink has been the CEO at BlackRock Inc. (NYSE:BLK) ever since he helped found the investment firm back in 1988. The company was originally an arm of The Blackstone Group L.P. (NYSE:BX), and separated from the company after an IPO in 1994. Fink has watched the company grow from an internal Blackstone property to the single largest asset manager in the world. The company manages more than $4 trillion.
Laurence Fink Live
Laurence Fink is expected to take the stage, he will be interviewed by Andrew Ross Sorkin.
Fink says that he sees big political risks in emerging markets over the next 2-3 months. He is expecting 12-15% correction in the region as China and Japan slow down. He also says that dysfunctions in Washington have brought instability in the markets.
Regarding Fed’s decision not to taper last Spetemeber, Fink said that it was a mistake. He says the Fed should taper in December. He says that taper will have very little negative effect on U.S economy. He says the prospective Fed chair, Janet Yellen has a great resume and exceptional skillset but will continue to apply the same policies as Ben Bernanke.
On Larry Summers, Fink said that he could have been a better candidate and that in case of another crisis, Summers would have done well than others.
Fink says that the Federal Reserve is not concerned about market volatility and neither should the rest of us. He said the Fed failed to benefit from the free option of tapering QE this time.
On Obamacare, Fink says people talk more about website glitches rather than the economic impact of the Affordable Care Act, even though healthcare accounts for 18% of U.S. economy. He said U.S. needs to focus on deficits and entitlements, including affordable care act and how it impacts consumer behavior
On a question about new investment opportunities, Fink said if he was 22 years old he would move to Mexico. He says the economic reforms have made it a great place for investment.
On Sorkin’s mention that Fink controls $4 trillion, he said that Blackrock is not too big to manage and clients can always redeem their money. He further said that the next crisis is not going to focus on banks, it will be something else. On breaking up big banks, he says that in these times, we need big, global banks to maintain global competition.
Fink says he is a believer in capitalism. Fink disclosed to a surprised audience that he is a registered independent. He went on to say that this government has done more to reach out to businesses than any other in the modern times.