Who Really Owns America? Do You Really Have a Vote in the Shares of Stocks You Own?

 

Who Really Owns America? Do You Really Have a Vote?

You’ve probably heard the names BlackRock, Vanguard, and State Street. They sound boring, like giant spreadsheet companies. But according to whistle-blowers, researchers, and even presidential candidates, these three firms quietly control more of the U.S. economy than anyone else — including you, me, and even most billionaires.Here’s the simple version of what’s really going on.You Think You Own Stocks — But Do You Really?
When you put money in your 401(k) or IRA, you usually pick a cheap “S&P 500 index fund” or an ETF. Great choice — they’re low-cost and usually beat expensive stock-pickers.
But here’s the catch:
Almost all of those “cheap” funds are run by just these three Financial Pirate Super Carriers:

• BlackRock
• Vanguard
• State Street

Together they manage over $24 trillion — more money than the entire economy of China. They Own a Piece of EVERY Big CompanyBecause their funds track the S&P 500, they have to buy shares in every single company in the index.That means the same three firms are among the top 5 biggest shareholders of:

• Apple, Microsoft, Google, Amazon
• Coca-Cola and Pepsi,
• Exxon and Chevron,
• CNN, Fox, Disney,
• Pfizer and Moderna…
  …and literally thousands more.

They even own big chunks of each other (yes, BlackRock is Vanguard’s biggest shareholder and vice versa, and versa vice — it’s a circle of Jerks!). Ownership = Voting PowerWhen a company has a shareholder vote (new CEO, climate policy, board members, etc.), someone has to vote those shares.Guess who votes on your behalf?
BlackRock, Vanguard, and State Street.Together they control about 25% of the votes at most giant companies. That’s usually enough to swing any decision they care about. How Did This Happen? Two Magic Words: Passive Investing

• The Old way (Active): Individuals, and/or their Stock Brokers managers tried to pick winning stocks.
• The New way (Passive): Just buy everything in the index and charge almost nothing.

Over time Passive approach won out. Today more than half of all stock-fund money is passive.Cheap funds = happy workers putting money in 401(k)s = trillions flowing to the same three companies = they buy more shares = they get more voting power. Rinse and repeat. The Scary Part Nobody Talks AboutYour retirement money is being used to push agendas you may not agree with. Examples in recent years:

• Forcing oil companies to go “net zero”
• Pushing banks to stop lending to gun manufacturers
• Demanding “racial equity audits” at companies
• Voting for massive CEO pay packages

They say they’re just “good stewards.” Critics say they’re acting like unelected regulators. It’s Not Just Stocks — They Control Pensions TooState employee pensions, teacher pensions, federal employee retirement funds — most of them also hire BlackRock, Vanguard, or State Street to manage the money.That means these three firms have a seat at the table for almost every dollar saved for retirement in America.So What Can You Do About It?You don’t have to panic and pull all your money out, but here are a few simple moves:

1. Check your 401(k) – See if every option is a BlackRock/Vanguard/State Street fund (many plans are).
2. Look for “direct indexing” or “separately managed accounts” – You own the stocks yourself, so you control the votes.
3. Consider active funds or individual stocks – More expensive, but the votes stay with people instead of the Big Three.
4. Ask your employer or pension board – Many are starting to offer “voting choice” programs where you pick how your shares are voted.

Da Bottom Line
BlackRock, Vanguard, and State Street didn’t break any laws. They just built the cheapest, easiest products — and the world handed them the keys to the economy.
The question now is:
Do we want three companies in New York, Pennsylvania, and Boston deciding what every major corporation in the world should do… using our money?That’s the conversation Ian Carroll (and a growing number of politicians, professors, and regular people) want to have.Your retirement account might be bigger and more powerful than you ever imagined — you just don’t get to steer it... Yet