Rolling Stone expose: Goldman Sachs behind every market crash since 1920s

Rolling Stone expose: Goldman Sachs behind every market crash since 1920s

rawstory.com

The five bubbles the article says Goldman was central to creating are the Wall Street stock bubble in the 1920s, which led to the Great Depression; the tech-stock bubble of the late 1990s, which ended in the 2001 recession; the housing bubble of the past decade, which resulted in the current economic crisis; the oil price run-up last summer, when oil shot up to $140 a barrel, likely helping tilt the entire world into recession; and what Taibbi describes as "rigging the bailout," when Goldman

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This may be no surprise to many of you. To me I find it sickening that a few banks are essentially the puppeteers of the U.S. America has been said to have the most restrictive banking laws in the world. So why does the U.S. let banks to this to the country? The article linked as the source is a pretty good read. You might want to take the time to look at it. It is about Goldmen Sachs but I am sure they are not the only ones profiting from the engineered crash.

rawstory.com
(visit the link for the full news article)

I read a comment which said - we should show up at these guys houses and set them on fire.

Well - that is a fine idea and one we should certainly find inspiring.

reply to post by Amagnon


Amagnon
thanks for the comment.
Also something similar did happen. Some retries kidnapped an investment banker who lost most of there savings. There is a thread about it around here some where.

so let's see

every corrupt company have been using the same corrupt auditors for decades

even now these same auditors are being used, after so much corruption founded still these auditors are never mentioned.

only auditor that went down was with Enron.

Other than that, same auditors are being used.

I do not own a tin foil hat, but I do have brain
Have a nice day

reply to post by ModernAcademia


I am not to sure where the auditors come in to this.
It is about the way the finance giant can manipulate the market, and by way of having the right people in the places of power, they can profit from it.

One of the problems is that people like the head of the Securities and Exchange commission are political appointees by the President.

When the head of the regulatory and investigative and oversight arm of the government is a political appointee it not only invites political cronyism in that selection but how the selectee then runs the agency.

It's no coincidence that Building 7 of the World Trade Center Complex housed the Securities and Exchange's headquarters and managed to fall down on September 11th like expert demolitions had been laid in, despite having been hit by no airplane or debris from other collapsing buildings.

The system is fraudulent, the oversight and regulation of the system is fraudulent. People like Bernie Madoff who aren't part of the Bohemian Club clique are thrown to the wolves to make it look as honest as it can be made to look from time to time but those who are politically connected have near impunity through the oversight of an enforcement head who is a politically apointee.

And their stock is up over 300% since November 08

No doubt there are schemes to pump money from us hard working people into the hands of the elite. These schemes are so complex and secret there seems no way of stopping them.

reply to post by RedGolem


The auditors come into it in a huge way actually. Did you know, for instance, that the banking and investment firms can choose their auditors out of a pool? I listened recently to an NPR program (I think it was This American Life) on which a reporter found that most of the lending institutions that failed were all audited by the same company and that this company was known for it's loose oversight.
I'll do a little digging and come up with better info after some coffee.

Originally posted by RedGolem
reply to post by ModernAcademia

 

I am not to sure where the auditors come in to this.
It is about the way the finance giant can manipulate the market, and by way of having the right people in the places of power, they can profit from it.

IMO, it is not just Goldmann Sachs, it is most, if not all of the key banks, these are all a different head of the same Chimera. These 'loop holes' have been written in to the very fabric of our economy and the G20 this year just did this for our future economy.

Wonderful.

Thanks for showing me this, I already believed this, but it's nice to see other people confirming it.

EMM

Originally posted by angst18


The auditors come into it in a huge way actually. Did you know, for instance, that the banking and investment firms can choose their auditors out of a pool? I listened recently to an NPR program (I think it was This American Life) on which a reporter found that most of the lending institutions that failed were all audited by the same company and that this company was known for it's loose oversight.

I think I heard the same program on NPR. The auditors to my understanding deal more with there investments in terms of loans. The point I was trying to make is the bank also has influence and quite possibility control in the governments which thus in turn lets them get away with the lame oversite from the auditors and such.

I have a feeling there are quite a few more players involved in these. And I know there are in the housing crisis, including Obama with his 1994 lawsuit against Citbank and Barney Franks' go ahead to Fannie and Freddie to issue subprime mortages.

Vilifying one party while letting others slide will not fix anything.

It looks like, at least according to this article, that Goldman Sachs is ready to jump on the "Cap & Trade" bandwagon next to try to squeeze a profit out of it.

Rolling Stone expose: Goldman Sachs behind every market crash since 1920s

The article, which is not yet officially available online, adds one more bubble to the list: the "global warming bubble," or specifically, the proposed cap-and-trade legislation that would allow companies to trade pollution credits on an open market.

Taibbi's argument suggests the Wall Street bank may well want to turn climate change policy into yet another Wall Street casino game.

Because emissions caps will continually be reduced, Taibbi argues, pollution credits will constantly be growing in value, and Goldman Sachs wants in on the ground floor.

Taibbi writes: "The plan is (1) to get in on the ground floor of paradigm-shifting legislation, (2) make sure that they're the profit-making slice of that paradigm and (3) make sure the slice is -- a big slice. Goldman started pushing hard for cap-and-trade long ago, but things really ramped up last year when the firm spent $3.5 million to lobby climate issues."

And here's an article that speculates what MIGHT be in the future for this new "Cap & Trade" market that Goldman Sachs seems pretty interested in!

Could Cap and Trade Cause Another Market Meltdown?

The same Wall Street players that upended the economy are clamoring to open up a massive market to swap, chop, and bundle carbon derivatives. Sound familiar?

And guess what they are lobbying for!

They want this new market to be UNREGULATED!

In an especially audacious move, the industry also argued that cap and trade should allow the very same types of unregulated instruments that helped spread risk throughout the financial system like a cancer, contributing to the economic meltdown. In particular, it lobbied for "over the counter" carbon derivatives—deals conducted directly between two parties with no one monitoring the risk. (Perhaps the most notorious form of OTC derivative is the credit default swap, which crippled AIG when it issued too many high-risk swaps while lacking the money to cover them.)

[edit on 7/2/2009 by Keyhole]

Well i'm glad major publications are starting to paint a different picture.

Alot of us knew what was on the way, during the last election in the U.S.

Personally i think alot more people are starting to turn their heads our way. And actually looking into whats going on. I expect the general media to start turning key more and more. As the veil is pulled off the current administrations agenda.

Check out the ZeroHedge blog. They cover a lot of these types of shenanigans. Like, how the majority of trading volume on the Street is now generated by "program trading." The NYSE lobbied the SEC to change the reporting requirements in July, however, as the cat got out of the bag. Turns out that what is happening on Wall Street is the major trading firms (GS, et al) are swapping equities back and forth, driving the share prices up artificially. Once the "public" starts buying, they let it go. This way the banks can show profits (buy at $20, sell to the next guy at $22, who sells to the next guy at $24, who sells to the next guy....). The key is that they have to dump it all on the unsuspecting individual investor at the end, in order to pull the money out.

Or, so the allegations go.

Seems like the Rolling Stones article this thread is about is now available online.

The Great American Bubble Machine - Rollin Stone Magazine

The formula is relatively simple: Goldman positions itself in the middle of a speculative bubble, selling investments they know are crap. Then they hoover up vast sums from the middle and lower floors of society with the aid of a crippled and corrupt state that allows it to rewrite the rules in exchange for the relative pennies the bank throws at political patronage. Finally, when it all goes bust, leaving millions of ordinary citizens broke and starving, they begin the entire process over again, riding in to rescue us all by lending us back our own money at interest, selling themselves as men above greed, just a bunch of really smart guys keeping the wheels greased. They've been pulling this same stunt over and over since the 1920s — and now they're preparing to do it again, creating what may be the biggest and most audacious bubble yet.
******SKIP******
the new game in town, the next bubble, is in carbon credits — a booming trillion- dollar market that barely even exists yet, but will if the Democratic Party that it gave $4,452,585 to in the last election manages to push into existence a groundbreaking new commodities bubble, disguised as an "environmental plan," called cap-and-trade. The new carbon-credit market is a virtual repeat of the commodities-market casino that's been kind to Goldman, except it has one delicious new wrinkle: If the plan goes forward as expected, the rise in prices will be government-mandated. Goldman won't even have to rig the game. It will be rigged in advance

.



[edit on 7/3/2009 by Keyhole]

there certainly needs to be some regulation or oversight or whatever word you want to use, but i suspect that existing regulations aren''t enforced so adding more isn't the answer. there needs to be someone who is not connected (obliged) to whoever is in power. madoff is a perfectly good example of how existing SEC people ignored problems. so there must be payoffs and favors and whatnot. it's not that i don't think there are any honest people in the world, its that most people can be gotten to one way or another. either because of secrets that need to stay secret or needing or wanting money or who knows what.

this is not acceptable behavior and is why our country has become vulnerable to the socialist agenda. this kind of market manipulation ruins things for everybody.

i guess for starters, there needs to be accountability so traders who participate are jailed as well as thei bosses who design these cheating systems.not one person has been called to account for this latest meltdown. what's the deal with that?

Business News Network (BNN) out of Canada (formerly ROBTV) , interviewed Matt Taibbi a couple days ago.

A great news source , especially for resource investors , BNN goes where CNBC fears to tread.

The Great American Bubble Machine

Video: 13:38 min.

GL