This is the story of ALADDIN, and how it – and BlackRock – took over Wall Street.
BlackRock has a secret weapon that has made it the most powerful company in the world: ALADDIN. If you’re ever wondered how Artificial Intelligence could impact our lives, here’s the answer. ALADDIN is the brainchild of Larry Fink, and it already controls more assets than the GDP than the US. It’s growing by $1 trillion to $2 trillion new assets in its control each year.
What if I told you there is a robot that controls more wealth than any country on earth? A robot so powerful that in the last 10 years it has quietly created the biggest company in the world.
This is the story of a robot called ALADDIN. It’s Wall Street’s best kept secret and it’s gobbling up every asset class across every industry. ALADDIN now controls $21 trillion of our global economy. To put that in perspective, that’s more than the $20 trillion GDP of the US, or the $15 trillion GDP of the entire European Union.
The New Statesman wrote, The total physical cash of all 7 billion people and every company, bank vault, wallet and piggy bank in the world, is around $5 trillion. ALADDIN has grown into a system responsible for more than four times the value of all the money in the world. (( 6 April 2018 The New Statesman – Meet Aladdin, the computer “more powerful than traditional politics” https://www.newstatesman.com/politics/business-and-finance/2018/04/meet-aladdin-computer-more-powerful-traditional-politics “How a single computer system came to influence the value of vast swathes of the world’s financial assets.” ))
This one robot directs the actions of the US Federal Reserve, almost every major bank and investment fund on Wall Street, and over 17,000 traders. It controls half of all ETFs, 17% of the bond market, 10% of the global stock market, and carries out a quarter of a million trades every day and billions of forecasts every week.
Year after year, it hoovers up trillions of data points on every market, every company, every asset and now even each of us, what we buy, sell and say, so that it knows what to buy and what to sell far better than any human being.
Every major bank, company and investment fund has come to rely on ALADDIN, and it’s all powerful AI and algorithms to beat the market. And if they didn’t, they’ve collapsed and failed in ALADDIN’s wake. And you know what the craziest part of this story is? This robot is just getting started, so where did ALADDIN come from and how did it get so powerful? (( 26 June 2023 The New American Magazine Behind The Deep State: Aladdin: BlackRock’s Shady AI System That Even Its COMPETITORS Use https://rumble.com/v2wj5mk-behind-the-deep-state-aladdin-blackrocks-shady-ai-system-that-even-its-comp.html ))
ALADDIN is (reportedly) the brainchild of Larry Fink, the founder of BlackRock, and its total dominance has made his company the biggest shadow bank in the world, and the most powerful company on earth. (( World Economic Forum Profile – Laurence D. Fink – https://www.weforum.org/agenda/authors/larry-fink )) (( Larry Fink https://en.wikipedia.org/wiki/Larry_Fink )) (( Laurence D. Fink is Chairman and Chief Executive Officer of BlackRock. https://www.blackrock.com/corporate/about-us/leadership/larry-fink ))
The story we’re about to hear is equally unbelievable and terrifying. In fact, you would think it was science fiction if it wasn’t very real and happening today.
This story starts in the 1980s, when Larry Fink was making millions pioneering mortgage-back securities at Wall Street Bank, First Boston Corporation. That’s right, the same mortgage-back securities that caused the 2008 global financial crisis 20 years later. (( 2007–2008 financial crisis https://en.wikipedia.org/wiki/2007%E2%80%932008_financial_crisis )) (( Great Recession https://en.wikipedia.org/wiki/Great_Recession ))
But back in the 80s, he was in an epic Wall Street rivalry with Lewis Ranieri as Salomon Brothers (now a subsidiary of Citigroup), made famous as a ‘Big Swinging Dick’ in Michael Lewis’ book, Liar’s Poker. (( Lewis Ranieri https://en.wikipedia.org/wiki/Lewis_Ranieri )) (( Salomon Brothers https://en.wikipedia.org/wiki/Salomon_Brothers )) (( Liar’s Poker https://en.wikipedia.org/wiki/Liar%27s_Poker “Big Swinging Dick — A big-time trader or salesman. (“If he could make millions of dollars come out of those phones, he became that most revered of all species: a Big Swinging Dick”. p. 56.)” ))
Back then, Larry was making millions for the bank and was on track to be First Boston’s CEO. And then in 1986, an error in the back office computer models led to Larry making the wrong trades and he lost the company $100 million. The result was Larry leaving the bank as a failure with the stupid computer to blame.
With that experience, Larry had just one ambition, to build a super smart robot that could pick out risk and opportunity in the market and do it better than any computer or human could do. In 1988, he launched a new startup BlackRock with a tiny coding team to give birth to this robot.
Its name? ALADDIN. Which stands for Asset, Liability And Debt Derivative Investment Network. (( Aladdin (BlackRock) https://en.wikipedia.org/wiki/Aladdin_(BlackRock) ))
In its first 10 years, ALADDIN was fed information about every asset, price movement, and risk variable in the global bond market, Larry’s specialty. And in 1999, when ALADDIN turned 11, ALADDIN was getting so intelligent at picking losers and winners that Larry began selling access to his data to other Wall Street firms. That same year, he took BlackRock public on the New York Stock Exchange. Straight after the IPO, the dot-com bust burst, pushing a wall of money from the stop market to bonds, which ALADDIN had become the undisputed world champion in. (( Dot-com bubble https://en.wikipedia.org/wiki/Dot-com_bubble ))
Within years, BlackRock had become a trillion dollar company and has money started shifting back to shares. What did Larry do? He bought the asset management arm of Merrill Lynch, which was focused on shares. (( Merrill Lynch https://en.wikipedia.org/wiki/Merrill_(company) ))
So the gift for ALADDIN’s 18th birthday? All the data points for the entire stock market, and suddenly ALADDIN had a new playground, analyzing every stock trade and risk factor for every company on the stop market. As a result, today BlackRock, together with his two closest rivals, Vanguard and State Street, both of which also rely on ALADDIN’s mountain of knowledge, have become the biggest shareholders of over 40% of all public listed companies in America. (( Who Owns The World? https://pennybutler.com/who-owns-the-world/ ))
2008, the global financial crisis hit, and before ALADDIN turns 21 years old, is caught on by every Wall Street bank and Timothy Geithner, the head of the Federal Reserve and the US Treasury. (( Timothy Geithner https://en.wikipedia.org/wiki/Timothy_Geithner ))
It was ALADDIN who decided which assets to keep and which to leave in the $30 billion rescue package. And few people know it was a robot that saved America from disaster.
With that first success, the Fed, US government and now even European and Japanese central banks began relying on ALADDIN to make the cause and where the $2.5 trillion of new money they printed should go. The majority of it? Bonds and funding to prop up the mortgage companies and banks. But wait, aren’t these exactly the assets that ALADDIN and BlackRock already were invested in? Exactly. (( Bloomberg – 20 Aug 2018 – BlackRock’s Decade: How the Crash Forged a $6.3 Trillion Giant https://www.bloomberg.com/news/articles/2018-08-30/blackrock-s-decade-how-the-crash-forged-a-6-3-trillion-giant#xj4y7vzkg “The business now towers over its competitors; its $6.3 trillion in assets under management exceeds the size of Germany’s economy.” ))
But growing protests of conflict of interest were drowned out by the noise of the printing presses, printing more money. (( 27 Oct 2008 – Solidarity.net.au – It’s their crisis–why should we pay? https://solidarity.net.au/web/its-their-crisis-why-should-we-pay/ “The world is suffering its most serious financial crisis since the 1930s. Most economists believe that more banks will fail regardless of the billions being poured into failed banks across the world. … But the cost of this will be borne by ordinary people, not the corporate executives who created this mess. The US$700 billion spent on bailing out the US financial system will be paid for by increased taxes and cuts to public services for ordinary Americans. Yet the CEOs of the banks that survive will keep raking in millions. Even the executives of collapsed banks like Lehman Brothers will not be asked to hand back the millions of dollars they made.” ))
As the assets controlled by ALADDIN rapidly grew to $11 trillion by 2013. In the last decade, ALADDIN has gone from the leader to the dominator of all financial markets. (( 5 Dec 2013 – The Economist – The rise of BlackRock https://www.economist.com/leaders/2013/12/05/the-rise-of-blackrock In 25 years, BlackRock has become the world’s biggest investor. )) (( 6 Dec 2013 – Technology Investor – Catch a falling knife https://www.technologyinvestor.com/?p=23527 “If you caught the falling knife in March 2009, you have made out like a bandit” ))
With BlackRock’s Barclays acquisition, it got iShares. Barclays exchange traded funds units or ETFs. And with that, ALADDIN moved from Dominator of Bonds and Equities to Dominator of ETFs, just as all the biggest investors shifted from mutual funds to ETFs. (( 19 June 2009 – Bloomberg – Inside the Big Deal Between BlackRock and Barclays https://www.bloomberg.com/news/articles/2009-06-18/inside-the-big-deal-between-blackrock-and-barclays#xj4y7vzkg )) (( 12 June 2009 – Reuters – BlackRock to buy BGI, becomes top asset manager https://www.reuters.com/article/us-blackrock-barclays-idUSTRE55B06X20090612 “BlackRock Inc. said on Thursday it will buy British bank Barclays Plc’s investment arm BGI for $13.5 billion in a blockbuster deal that will create the world’s biggest asset manager.” )) (( 11 June 2019 – Barron’s – Inside BlackRock’s ‘Once in a Lifetime’ Deal With Barclays, 10 Years Later https://www.barrons.com/articles/blackrock-barclays-deal-10-years-later-51560270360 “CVC probably also regrets letting Barclays’ prized asset slip through their fingers. Over the past decade, iShares, which had $300bn in assets when the deal was completed, has swelled to almost $2tn.” )) (( iShares https://en.wikipedia.org/wiki/IShares “iShares is a collection of exchange-traded funds (ETFs) managed by BlackRock, which acquired the brand and business from Barclays in 2009. The first iShares ETFs were known as World Equity Benchmark Shares (WEBS) but have since been rebranded” )) (( 14 June 2021 – Financial Times – BlackRock’s ETF assets race past $3tn https://www.ft.com/content/14ff3d4e-350d-423e-a336-8cb1f0043978 ))
And that’s when in 2017, everything changed. On ALADDIN’s 29th birthday, Larry launched a top secret project at BlackRock code-named “Monarch”. (( 4 July 2017 Reuters Two top ‘quant’ researchers exit BlackRock as it revamps stock unit https://www.reuters.com/article/us-blackrock-moves-quants-idUKKBN19O1UQ “Two high-level quantitative researchers have left BlackRock Inc BLK.N as the world’s largest asset manager embarks on an ambitious effort to engineer a high-tech revolution within its stockpicking business. … The strategy, internally code-named “Monarch,” is designed to jumpstart BlackRock’s stock funds business, which has delivered mixed performance overall.” ))
Which led to the firing of his fund managers and replacing their funds with ALADDIN’s funds. The robot was now eliminating humans from the equation altogether. And as a result, today over 70% of all trades on US Stock Markets are decided by robots, with ALADDIN leading the way. These trades are completed from beginning to end without a human involved in high-frequency trading far faster than a human can execute.
Now, if this was just a story about a robot taking over the job of Wall Street traders, you might not be so concerned, unless you’re one of those traders. But in the last three years, as ALADDIN hit $20 trillion in assets, incredibly, it has begun to consume and control at an even faster rate.
First, in 2020, as ALADDIN turned 32 years old, the US government and Federal Reserve again came calling as a pandemic hit. ALADDIN was again the one to guide the nation in what was now $4 trillion of newly printed money. Where did the money go this time? Inexplicably, for the first time, the Fed began buying ETFs in 2020. Well, that’s a little strange. And again, the cries of conflict of interest were drowned out by the money printing. (( 21 May 2020 Bloomberg In Fink We Trust: BlackRock Is Now ‘Fourth Branch of Government’ https://www.bloomberg.com/news/articles/2020-05-21/how-larry-fink-s-blackrock-is-helping-the-fed-with-bond-buying#xj4y7vzkg ))
And then, ALADDIN revealed its endgame.
Recently, BlackRock acquired EFront, which collects data on the things that you and I own, including private equity and real estate. And since then, ALADDIN has consumed EFront’s data on the entire global real estate market, and yep, you guess what happened next. (( 10 May 2019 BlackRock Completes Acquisition of eFront https://www.blackrock.com/corporate/newsroom/press-releases/article/corporate-one/press-releases/blackrock-efront-acquisition ))
Over the last two years, BlackRock and other funds using ALADDIN’s data have begun buying up single-family homes, where they can afford to out-bed the rest of us as they have unlimited financing at hyper low interest rates. (( BlackRock says “We want to make perfectly clear: BlackRock is not buying individual houses in the U.S.” https://www.blackrock.com/us/individual/insights/buying-houses-facts (… well if you say so…*eye roll*…) )) (( 20 Jun 2021 Why Is Blackrock Buying Single Family Homes? https://youtu.be/IDGiQR6BkPM “Why is this happening? Clearly, because they don’t want the average joe to own anything. ” )) (( 19 Jun 2021 Slate Investment Firms Aren’t Buying All the Houses. But They Are Buying the Most Important Ones. https://slate.com/business/2021/06/blackrock-invitation-houses-investment-firms-real-estate.html “Let’s focus on Invitation Homes, a $21 billion publicly traded company that was spun off from Blackstone, the world’s largest private equity company, in 2017. Invitation Homes operates in 16 cities, with the biggest concentration in Atlanta, where it owns 12,556 houses. (Though that’s not much compared with the 80,000 homes sold in Atlanta each year, Invitation Homes bought 90 percent of the homes for sale in some ZIP codes in Atlanta in the early 2010s.)” ))(( 27 Mar 2022 Blackrock is buying is Every Single Family House They Can Find “Paying 20-50% OVER MARKET” https://coercioncode.com/2022/03/27/blackrock-is-buying-is-every-single-family-house-they-can-find-paying-20-50-over-market/ “The median price of an American house has increased by 28 percent over the last two years, as pandemic-driven demand and long-term demographic changes send buyers into crazed bidding wars. Might the fact that corporate investors snapped up 15 percent of U.S. homes for sale in the first quarter of this year have something to do with it?” )) (( 25 Jun 2021 Blackrock & Blackstone Are Buying Single Family Homes. Should You? Can you Compete with them today? https://youtu.be/kTg_gtf25rI )) (( PURE EVIL: Blackrock buying up every single family house they can find. https://hive.blog/deepdives/@libertyacademy/pure-evil-blackrock-buying-up-every-single-family-house-they-can-find )) (( 5 July 2021 Better Dwelling How Low Interest Rates Sent Institutions Like Blackrock Into Bidding Wars For Homes https://betterdwelling.com/how-low-interest-rates-sent-institutions-like-blackrock-into-bidding-wars-for-homes/ “One article cites a bidding war for a whole neighborhood with 200 investors. Blackstone, Fundrise, and probably your local pension were amongst the bidders. People are no longer just bidding against other buyers. They’re bidding against pension firms, and often the website they found the listing on. … People frequently confuse Blackrock with Blackstone, often mistaking one for the other. Even journalists. Blackrock is the world’s largest asset manager, with $6 trillion under management. Blackstone is the world’s largest alternative asset manager. The former is somewhat limited in their play for single-family homes. At least directly, for now. The latter one is somewhat of a pioneer for the industry. Blackstone is run by two former Lehman Brothers execs, who left to start the merger and acquisition firm in 1985. They spun off Invitation Homes, the largest single-family home buyer, with ~80,000 homes in 2020. Blackstone sold their position in the company, but are trying their luck again. Shortly after existing last year, they invested in the Toronto-based Tricon Residential.” ))
And here, we see ALADDIN’s endgame, to be the one hyper-intelligent AI robot that not just controls war-street assets, but all assets, public and private. Now, I’m not into conspiracy theories, but even a skeptic with eyes wide open can see the signs.
We’re already at a point where no one can compete without ALADDIN.
As CEOs and asset managers like Anthony Malloy are now saying, “Aladdin is like oxygen. Without it we wouldn’t be able to function”. (( 19 Dec 2017 Forbes BlackRock’s Edge: Why Technology Is Creating The Amazon Of Wall Street https://www.forbes.com/sites/antoinegara/2017/12/19/blackrocks-edge-why-technology-is-creating-a-6-trillion-amazon-of-wall-street/?sh=720e5219561b “Aladdin is like oxygen. Without it we wouldn’t be able to function,” says Anthony Malloy, CEO of $238 billion (assets) ))
And what about government regulation? Well, Joe Biden has appointed BlackRock executive Brian Deese as head of the National Economic Council, which basically means the oversight of ALADDIN and BlackRock is now the responsibility of BlackRock. (( Brian Deese https://en.wikipedia.org/wiki/Brian_Deese )) (( Brian Deese: Education, Achievements, National Economic Council https://www.investopedia.com/who-is-brian-deese-5095167 “Brian Deese is the current director of the National Economic Council (NEC) under President Joe Biden. Because the director of the NEC is not a cabinet-level position, he did not need to be confirmed by the Senate. Prior to his current position, Deese was global head of sustainable investing at BlackRock Inc. (BLK), a position he’d held since 2017.” )) (( 3 Dec 2020 NPR Biden Names BlackRock’s Brian Deese As His Top Economic Aide https://www.npr.org/sections/biden-transition-updates/2020/12/03/942205555/biden-names-blackrocks-brian-deese-as-his-top-economic-aide “President-elect Joe Biden has tapped former Obama aide Brian Deese as director of the National Economic Council, his top economic adviser at the White House. … After his service in the Obama administration, Deese became the global head of sustainable investing at BlackRock. Progressive groups say the investment firm holds financial stakes in energy companies that contribute to climate change. … Deese is the second Biden pick to have ties to BlackRock. Wally Adeyemo, Biden’s intended nominee for deputy treasury secretary, was chief of staff to the company’s CEO.” ))
And this story is far from over. The genie is out of the bottle, and ALADDIN has already reached a tipping point where one robot controls more wealth than any person or country. But as ALADDIN’s AI capabilities continue to grow, and with this rate of control rising by another trillion to two trillion dollars in new assets every year, it looks inevitable that war-street secret weapon could end up owning everything, and we end up owning nothing.
Truth-seeker, ever-questioning, ever-learning, ever-researching, ever delving further and deeper, ever trying to 'figure it out'. This site is a legacy of sorts, a place to collect thoughts, notes, book summaries, & random points of interests.