In a interview On The Breakfast Radio, Robert F. Kennedy Jr. shared his views on his 2024 presidential run, reparations, inflation, and America’s housing crisis, among other topics.
His comments about big business causing the housing crisis and affecting young Americans’ chances of buying affordable housing have attracted considerable attention.
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RFK explains how BlackRock, State Street and Vanguard own a large portion of S&P 500 companies
They are also buying a lot of homes in the United States. RFK Jr. claims that by 2030, they could own 60% of single-family homes in the United States… pic.twitter.com/68izrJ9ONg
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“There are three giant corporations, BlackRock, State Street and Vanguard, that collectively own each other, so it’s really one giant corporation, but they also own 89% of the S&P 500. They own everything, and they’ve now decided to buy every single-family home in America, so if they stay on their current trajectory, they’ll own 60% of the single-family homes in this country by 2030. They’re literally trying to buy everything,” RFK Jr. said.
His comments are consistent with those of former presidential candidate Vivek Ramaswamy. publish on XHe said: “BlackRock, State Street and Vanguard represent arguably the most powerful cartel in human history: they are the largest shareholders in nearly every major public company (and even in each other).”
But are RFK Jr. and Ramaswamy right? Do these three big companies own such a large share of the S&P 500?
According to Business Insider, their arguments can be attributed to the academic document 2017 paper titled “The Hidden Power of the Big Three? Passive Index Funds, Reconcentration of Corporate Ownership, and New Financial Risk.”
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Researchers say BlackRock, State Street and Vanguard are the largest shareholders in 88% of S&P 500 companies.
In conclusion, the researchers write that since 2008, there has been a substantial shift from active to passive investment strategies. BlackRock, Vanguard, and State Street now dominate this passive investment market. Together, they are the largest shareholders of 40% of all U.S. companies and 88% of S&P 500 companies, and are de facto the permanent boards of directors of more than 40% of all publicly traded U.S. companies.
And what about RFK Jr.’s claims that he may own 60 percent of the single-family homes in the United States?
While BlackRock, Vanguard and State Street have considerable influence in financial markets and are influential investors in various sectors, their direct involvement in single-family home purchases is relatively limited. BlackRock, for example, has said it does not buy single-family homes but invests in mortgage-backed securities and new housing construction financing to increase housing supply.
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There is some truth to this concern, however, because private equity firms and other large investors have been buying up single-family homes, particularly during the 2008 financial crisis. These firms often buy homes in bulk, sometimes outbidding individual buyers, which can drive up prices and reduce the availability of housing for ordinary families.
Additionally, according to a report from Redfin, investors purchased 26% of affordable housing in the United States in the latter part of 2023. This makes it more difficult for regular buyers, who are already struggling with low availability, rising prices and high interest rates.
As NBC News reported in 2021, homeowners are selling their homes to the highest bidders, and those are often out-of-state investors. “They’re not selling to people who are looking to live in them.”
If he becomes president, Kennedy plans to create a federal program that would offer mortgages at a 3 percent interest rate, financed by tax-exempt bonds. These low-interest mortgages would be available only to individuals, not businesses.
“This will reduce mortgage payments by more than $1,000 a month for a median-priced home and allow your kids to outperform BlackRock in the market,” he said.
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This item “They already own 89% of the S&P 500, and now they’re going after single-family homes in America,” RFK Jr. warns. originally appeared on Benzinga.com
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