Monday, June 29, 2009

Goldman Sucks

I admire a brilliant piece of invective as well as the next guy, and the best I've seen in a long time is Matt Taibi's evisceration of Goldman Sachs, which he blames for both the creation, and the collapse, of every financial bubble of the last century. (Wow! Talk about evil!)

The bank's unprecedented reach and power have enabled it to turn all of America into a giant pump-and-dump scam, manipulating whole economic sectors for years at a time, moving the dice game as this or that market collapses, and all the time gorging itself on the unseen costs that are breaking families everywhere - high gas prices, rising consumer-credit rates, half-eaten pension funds, mass layoffs, future taxes to pay off bailouts. All that money that you're losing, it's going somewhere, and in both a literal and a figurative sense, Goldman Sachs is where it's going: The bank is a huge, highly sophisticated engine for converting the useful, deployed wealth of society into the least useful, most wasteful and insoluble substance on Earth - pure profit for rich individuals.

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.

If you want to understand how we got into this financial crisis, you have to first understand where all the money went - and in order to understand that, you need to understand what Goldman has already gotten away with. It is a history exactly five bubbles long - including last year's strange and seemingly inexplicable spike in the price of oil. There were a lot of losers in each of those bubbles, and in the bailout that followed. But Goldman wasn't one of them.

IF AMERICA IS NOW CIRCLING THE DRAIN, GOLDMAN SACHS HAS FOUND A WAY TO BE THAT DRAIN.

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4 Comments:

OpenID idiotgrrl said...

And did they also frame Roger Rabbit and sink the Edmund Fitzgerald?

8:30 PM  
Blogger dubjay said...

I think the jury on the Edmund Fitzgerald is still out, but as for the other, you have to ask yourself, Who =funded= Cloverleaf Enterprises?

9:08 PM  
Blogger halojones-fan said...

You read LF?

That explains a lot.

12:35 AM  
Blogger dubjay said...

I don't read LF. This one is a reprint from RS.

1:10 AM  

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