Goldman Sachs has played a crucial role in creating every market bubble since the 1920s — and has profited from not only the bubbles, but from the crash that followed as well, says a new expose in Rolling Stone magazine.
An article in the July 9-23 issue of the magazine, written by Matt Taibbi, lists five asset bubbles that the 140-year-old investment bank helped create — and one that Taibbi asserts the firm is currently working to make happen.
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 Sachs’ well-placed alumni inside the U.S. government engineered last fall’s bank bailout in such a way that the company profited massively.
Taibbi writes that Goldman Sachs has traditionally been a late arrival to market bubbles, getting in once others have started the trend, but, once in, the company quickly ramps up the bubble, predicts its bursting, and then hedges its bets so as to make money from the bubble crash.
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.”
On his blog, Taibbi has begun a discussion of the public reaction to his article. Some commenters have suggested that Taibbi’s understanding of high finance is limited, accusing him of misreading Goldman Sachs’ actions.
July 2nd, 2009 at 3:50 am
OM fucking god: It’s the FED that’s repsonsible….stop spreading disinfo Alex J, baby. keep on point! This is lefty diversion bs. Goldman is evil but the Fed is to blame!
Tod G. Reply:
July 2nd, 2009 at 10:14 am
Wall Street created the Fed, populates the Fed with its cronies, owns shares in the Fed, let’s not get the cart and horse confused.
The dude Reply:
July 2nd, 2009 at 3:57 pm
No, it’s all the Jews who own both GS and the Fed. It’s a symbiotic relationship that keeps the inbreed parasites alive. There is no horse, only a cart that keeps getting filled with tax money.
July 2nd, 2009 at 5:30 am
Goldman Sachs: “Engineering Every Major Market Manipulation Since The Great Depression” http://tinyurl.com/lwzo7w
Goldman Sachs is recording keystrokes of the users of their portal to frontrun trades http://tinyurl.com/ne8vld
JP Morgan 45 million Euro Hidden Derivative Commissions Fraud! http://tinyurl.com/md5lgy
July 2nd, 2009 at 6:13 am
ahhh ya …in ur face
July 2nd, 2009 at 6:50 am
Levy – You are right, but they are part of the same club. After the meltdown, Goldman Sachs quietly became a regular bank. That means they can borrow directly from the Fed, which gives them access to unlimited “money” (the dollar is really a credit, which must be paid back w/ interest).
July 2nd, 2009 at 8:27 am
Fascinating to see these more mainstream sites (although still pretty radical, but of the leftist camp) going so far as to name a “global warming bubble”. That must make Alex feel pretty good, and glad to have the company, from what is, my guess, an unexpected source. Shifting the issue from climate to extortion, which has been Alex’s point for a while.
Also, this Taibbi article says to me, we are still winning the battle that some think was won when Obama was elected, but which many now think was only sidetracked at that point.
If enough citizens shift their focus to the perpetrator of all these bubbles, we could dispense with all the distractions and attack the real problem — the banking cartel, ie., the parasite/cancer that has been growing on the Republic since the 1830’s.
Aussie Bob Reply:
July 3rd, 2009 at 2:26 am
Yeah,
Although I am a “foreigner” according to that d.h. “reconmarine” I am affected daily by the policies of the U.S.A. and being a “world citizen” I am entitled to comment on any matters relating to the U.S., be it monetary or military.
U r correct with ur observations…just get ur college mates to see what is really going on!
July 2nd, 2009 at 8:41 am
The current bubble is in treasuries.
ProudPrimate Reply:
July 2nd, 2009 at 12:23 pm
but the greatest bubble of all is that lodged between the ears of the American electorate. Some of them popped in 2008, but many remain staunchly in place.
July 2nd, 2009 at 9:00 am
You forgot the Alex Jones Conspiracy Bubble – it appears there’s a tub of cash being made here as well – operating on the age old proverb, “A fool and his money are soon parted.”
July 2nd, 2009 at 9:38 am
You know that Taibbi guy will be “sleeping with the fishes” or mysteriously disappear!
ProudPrimate Reply:
July 2nd, 2009 at 12:21 pm
too late — the damage is done. He’s got some pretty good licks in, and it’s up to us to maximize the effect
July 2nd, 2009 at 10:28 am
It is in vain,sir,to extenuate the matter.Gentlemen may cry”Peace! Peace!”_ _but there is no peace.The war is actually begun!The next gale that sweeps from the north,will bring to our ears the clash of resounding arms!Our brethren are already in the field!Why stand we here idle?What is it that gentlemen wish?What would they have?Is life so dear,or peace so sweet,as to be purchased at the price of chains and slavery?Forbid it,Almighty God!I know not what course others may take;but as for me,give me LIBERTY or give me DEATH!
Patrick Henry – March 23,1775
Boston Tea Party Speech
Virginia joining the American Revolution…
July 2nd, 2009 at 11:50 am
Fascinating to see these more mainstream sites (although still pretty radical, but of the leftist camp) going so far as to name a “global warming bubble”. That must make Alex feel pretty good, and glad to have the company, from what is, my guess, an unexpected source. Shifting the issue from climate to extortion, which has been Alex’s point for a while.
Also, this Taibbi article says to me, we are still winning the battle that some think was won when Obama was elected, but which many now think was only sidetracked at that point.
If enough citizens shift their focus to the perpetrator of all these bubbles, we could dispense with all the distractions and attack the real problem — the banking cartel, ie., the parasite/cancer that has been growing on the Republic since the 1830’s.
Some great Taibbi quotes, too:
and
ProudPrimate Reply:
July 2nd, 2009 at 12:25 pm
(oops — I came back and my original edit window was still open, so I assumed it hadn’t posted. I wonder how that happened . . .
July 2nd, 2009 at 12:40 pm
I wonder would this plan work?
What if all the countries in the world were to say to the money changers and rothchilds of this world “Go and fuck yourselves we are not going to pay ye one more red cent”.
What could they do….NOTHING.
July 2nd, 2009 at 2:20 pm
Zero Hedge reported this on 6/25. It’s the best financial blog to read and I encourage those who want to stay informed to look at it as they’re the oens that are expsoing the Goldman Sachs issues and if you look on their blog, you will see there are words going back and forth between Zero Hedge and Goldman Sachs. There are things still going on that Zero Hedge is doing and all the market manipulation that Goldman Sachs does. They go way beyond this article and it’s gotten personal.
This isn’t going to end and these guys will stay on it. I encourage you all to follow it and bring the power in numbers. Don’t fear, the leader sent an e-mail out to the readers and their server is being moved offshore so the government can’t shut them down.
July 2nd, 2009 at 2:43 pm
Was Hitler a puppet aimed at one world government?
It’s a (well-hidden) fact of history that before World War 2, Hitler worked with the Zionists in sending jews to Palestine, effectively helping to establish a jewish homeland already potentially mandated by the Balfour Declaration (itself consisting of a single letter from a British minister to a Lord Rothschild)
Zionist apologists correctly argue that the Zionists had every reason to work with Hitler. Where they become mute is explaining why Hitler had any reason to work with the Zionists. Why would the anti-semitic Hitler agree to populate a future jewish homeland?
“We will have a world government whether you like it or not. The only question is whether that government will be achieved by conquest or consent.” Paul Warburg, Rothschild banker, testimony before U.S. Senate, February 17, 1950
it was Warburg among other bankers and industrialists who funded Hitler’s pre-war rise to power in the first place . . . and knew exactly what they were getting, given Hitler had written and published Mein Kampf in 1925. Post-war congressional investigations proved the Rockefellers (dynasty begun with Rothschild seed money and later partnerships) traded with Germany well into the war. The Prescott Bush-managed Union Bank was seized in 1942 under the Trading With The Enemies Act for continuing to trade with Germany after hostilities had been declared.
The Warburgs were also an integral part of the post WWI Treaty of Versailles that forced economically damaging reparations on Germany. Rothschild emissaries were on all sides of the negotiations, including Germany. The Treaty of Versailles created the ground for the rise of someone like Hitler.
Was Germany indeed targeted for the future creation of Israel exactly because it was the most anti-semitic country in Europe?
affadavits from concentration camp survivors used in Israeli courts affirm that it was very often Zionists working with Hitler who decided which “desirable” jews would go to the camps and which could emigrate to Palestine. The Zionists were allowed their own newspaper, and allowed to fly their own flag, the only other flag allowed to fly in Germany besides the Swastika. The Zionists also had a trade plan with the Berlin government by which German Jews could redeem their property in Nazi goods exported to then British-occupied Palestine.
(for more, see reviews of Leni Brenner’s book 51 Documents: Zionist Collaboration With the Nazis at amazon.com)
Hitler: Rothschild patsy, Rothschild agent or even . . . a Rothschild?
Though it is now clear to see how Hitler was used (1939: Hitler and Stalin both invade Poland but only Hitler is attacked by the then largely Rothschild-owned Euro press; the Rothschilds rejected Herzl’s pleas to help finance the removal of ALL european jews to Palestine), was he an outright patsy, or an insider who knowingly sacrificed his own country?
A brief circulated throughout the German army in 1944 claimed that Hitler was of jewish descent, indeed that he was the bastard grandchild of a Rothschild baron (documentation Hitler’s unmarried grandmother became pregnant while chambermaid to a Rothschild and could not have become pregnant by Hitler’s declared grandfather).
There is also the “missing period” of Hitler’s life where he could have been recruited by the family. During his military service Hitler was also a spy, a member of German intelligence, and intelligence services worldwide have long-held and demonstrable links to secret societies. One such, the Thule, would also later be instrumental in Hitler’s rise to power.
There is the longstanding joke that Hitler survived the war. Witnesses to the burning of Hitler and Braun’s bodies testify that the bodies reacted differently to the fire (the man’s body had achieved rigor and didn’t twist and turn in the fire as the woman’s did; thus the man had been dead first and far longer)
A dentist examining the claimed remains in the possession of Russia states categorically that based on comparisons of bridgework and newsreel footage, the remains are Hitler’s. However according to the wartime press, Hitler was known to have at least a dozen doubles, including dental work made identical to Hitler’s along with other physical reshaping of the head and spine. The only true test would be DNA testing of the remains compared to descendants of Hitler’s relatives, but so far such testing has not been allowed.
July 2nd, 2009 at 3:18 pm
When they appointed Hank Paulson as Sect. of Treasury and Cash & Carry for fixing the economic crisis (back in 09/2008 of the Bush era) one knew (laud and clear) that it was a Solo Drama staged by Goldman Schacs. Does one need any further proof (unless one is a pathological stupid).
The only other common thim was that like 9/11 the economic crisis also surfaced in the month of September. So please watch out the month of Sept. dramas (come Spet. of the 60s).
July 2nd, 2009 at 7:43 pm
THE GREAT AMERICAN BUBBLE MACHINE
Matt Tiabbi article is sooo awsome it’s a must read. Just Google “The great american bubble machine” and you should get the whole Rolling Stones article.
July 2nd, 2009 at 9:00 pm
“NONE DARE CALL IT CONSPIRACY” Copyright © 1971 by Gary Allen with Larry Abraham
Read it get caught up on the last 80 years.
July 2nd, 2009 at 9:07 pm
FOURTEEN SIGNPOSTS TO SLAVERY
1. Restrictions on taking money out of the country and on the establishment or retention of a foreign bank account by an American citizen.
2. Abolition of private ownership of hand guns.
3. Detention of individuals without judicial process.
4. Requirements that private financial transactions be keyed to social security numbers or other government identification so that government records of these transactions can be kept and fed into a computer.
5. Use of compulsory education laws to forbid attendance at presently existing private schools.
6. Compulsory non-military service.
7. Compulsory psychological treatment for non-government workers or public school children.
8. An official declaration that anti-Communist organizations are subversive and subsequent legal action taken to suppress them.
9. Laws limiting the number of people allowed to meet in a private home.
10. Any significant change in passport regulations to make passports more difficult to obtain or use.
11. Wage and price controls, especially in a non-wartime situation
12. Any kind of compulsory registration with the government of where individuals work.
13. Any attempt to restrict freedom of movement within the United States.
14. Any attempt to make a new major law by executive decree (that is, actually put into effect, not merely authorized as by existing executive orders.)
NONE DARE CALL IT CONSPIRACY
July 2nd, 2009 at 9:13 pm
What effect will a mainstream article like this actually have on Goldman Sachs? None. None whatsoever. Kudos to Tiabbi for writing it anyway. I guess, if anything, it might help to wake up some of his deluded “liberal” (and I use the term loosely) readers about the environmental tax scam. Tiabbi appears on Bill Maher alot, and I was glad to see Maher publicly jump off the Obama bandwagon a few weeks ago. I hope he can get him on the show in the near future. Maybe he can somehow convince Bill that giving money to bankers and politicians won’t do a f#$king thing to help the environment.
July 3rd, 2009 at 3:11 pm
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