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# Rolling Stone: Goldman Sachs created every bubble since 1930

Author Message
CEO
Joined: 15 Aug 2003
Posts: 3460
Followers: 67

Kudos [?]: 871 [0], given: 781

Rolling Stone: Goldman Sachs created every bubble since 1930 [#permalink]

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04 Jul 2009, 05:12
Found on digg.

http://www.rollingstone.com/politics/st ... le_machine

Quote:
They achieve this using the same playbook over and over again. 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.

Quote:
It sounds obvious now, but what the average investor didn't know at the time was that the banks had changed the rules of the game, making the deals look better than they actually were. They did this by setting up what was, in reality, a two-tiered investment system — one for the insiders who knew the real numbers, and another for the lay investor who was invited to chase soaring prices the banks themselves knew were irrational. While Goldman's later pattern would be to capitalize on changes in the regulatory environment, its key innovation in the Internet years was to abandon its own industry's standards of quality control.
Senior Manager
Joined: 30 Jul 2007
Posts: 385
Location: Europe
Schools: St. Gallen '09
Followers: 6

Kudos [?]: 59 [0], given: 5

Re: Rolling Stone: Goldman Sachs created every bubble since 1930 [#permalink]

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05 Jul 2009, 03:46
I thought this was pretty interesting.

Despite the sensationalism and colorful language, Taibbi has done a good research job. He also wrote a very good piece on the financial crisis a few months ago:

"The Big Takeover"
http://www.commondreams.org/view/2009/03/22-6

I have found this site quite intriguing (entertaining, etc.) about GS and financial markets in general:

http://www.goldmansachs666.com/

The owner of that site was in court proceedings with Goldman, who wanted the site taken down for trademark infringement, but the case has been voluntary dismissed.

The following was penned by Martin Armstrong about GS' conspiracy:

http://www.scribd.com/doc/14465576/Arms ... iracy-19-p

caveats on Armstrong: http://en.wikipedia.org/wiki/Martin_A._Armstrong

And you wonder why the banks are afraid of “populist overreaction”?!?!

http://www.bloomberg.com/apps/news?pid= ... BWPPxGyWaU
Senior Manager
Joined: 30 Jul 2007
Posts: 385
Location: Europe
Schools: St. Gallen '09
Followers: 6

Kudos [?]: 59 [0], given: 5

Re: Rolling Stone: Goldman Sachs created every bubble since 1930 [#permalink]

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05 Jul 2009, 04:41
I follow this poster for market commentary and my weekly dose of conspiracy entertainment:

Goldman: Bankers, Or Just Mobsters With MBA's?

And here's his blog:

http://www.sliderontheblack.com/
Senior Manager
Joined: 30 Jul 2007
Posts: 385
Location: Europe
Schools: St. Gallen '09
Followers: 6

Kudos [?]: 59 [0], given: 5

Re: Rolling Stone: Goldman Sachs created every bubble since 1930 [#permalink]

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05 Jul 2009, 08:24
Is Goldman legally front-running its clients?

http://www.zerohedge.com/node/12083

Quote:
You acknowledge that we may monitor your use of the Services for our own purposes (and not for your benefit). We may use the resulting information for internal business purposes or in accordance with the rules of any applicable regulatory or self-regulatory body and in compliance with applicable law and regulation.
Senior Manager
Affiliations: ACA, CPA
Joined: 26 Apr 2009
Posts: 441
Location: Vagabond
Schools: BC
WE 1: Big4, Audit
WE 2: Banking
Followers: 5

Kudos [?]: 89 [0], given: 41

Re: Rolling Stone: Goldman Sachs created every bubble since 1930 [#permalink]

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05 Jul 2009, 19:58
Are we really in a financial crisis... i guess not

http://www.sliderontheblack.com/politics-money-and-markets/were-all-chumps-now-citi-boosts-salaries-goldman-to-pay-record-bonuses/
_________________

If you have made mistakes, there is always another chance for you. You may have a fresh start any moment you choose, for this thing we call "failure" is not the falling down, but the staying down.

Senior Manager
Joined: 30 Jul 2007
Posts: 385
Location: Europe
Schools: St. Gallen '09
Followers: 6

Kudos [?]: 59 [0], given: 5

Re: Rolling Stone: Goldman Sachs created every bubble since 1930 [#permalink]

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09 Jul 2009, 01:30
Matt Taibbi hitting back at the mainstream criticism of his article:

http://trueslant.com/matttaibbi/2009/07 ... it-excuse/
Senior Manager
Joined: 30 Jul 2007
Posts: 385
Location: Europe
Schools: St. Gallen '09
Followers: 6

Kudos [?]: 59 [0], given: 5

Re: Rolling Stone: Goldman Sachs created every bubble since 1930 [#permalink]

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09 Jul 2009, 05:58
http://globaleconomicanalysis.blogspot. ... asury.html

Craig Roberts, Former Assistant Treasury Secretary has interesting comments on the bailouts, the dollar, and Goldman Sachs

Quote:
Craig Roberts: Bank bailout was a fraud and it won't succeed. Don't know what sort of stupidity the Treasury Secretary and the Federal Reserve will resort to next.

Max Keiser: Quick question. What should the Treasury Secretary be doing?

Craig Roberts: He should be trying to save the dollar as the world's reserve currency which means stopping the wars, reducing the bailout money, and trying to reduce the trade and budget deficits in order to save the dollar. That's what he should be doing.

Max Kesier: Does the treasury secretary work for the people or does he work for the banking system on Wall Street?

Craig Roberts: He works for Goldman Sachs.
Senior Manager
Affiliations: ACA, CPA
Joined: 26 Apr 2009
Posts: 441
Location: Vagabond
Schools: BC
WE 1: Big4, Audit
WE 2: Banking
Followers: 5

Kudos [?]: 89 [0], given: 41

Re: Rolling Stone: Goldman Sachs created every bubble since 1930 [#permalink]

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09 Jul 2009, 06:14
Max K rocks! He calls it as he sees it. He was so bold that BBC sidelined his show (The oracle) where he made predictions about the financial world and then some. The vids are still there on youtube...truly some classics there.
_________________

If you have made mistakes, there is always another chance for you. You may have a fresh start any moment you choose, for this thing we call "failure" is not the falling down, but the staying down.

Re: Rolling Stone: Goldman Sachs created every bubble since 1930   [#permalink] 09 Jul 2009, 06:14
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