He should, and in this very narrow statement Sanders is almost correct. What Sanders does not mention however is that the reason Goldman Sachs acted the way it did, indeed why it COULD act the way it did in the lead up to 2008 was because its “greed” was facilitated by the Federal Reserve. The central planners wanted Goldman Sachs and the other banks to leverage themselves out. This was the goal. The Great Recession was created by the Federal Reserve,
Goldman was President Obama’s number 1 private contributor in the 2008 election.
Goldman should be dead. Door knob. A chapter in American finance history, but a chapter about the past. It should no longer exist. It is not an example of American capitalism. It is crony capitalism at its worst. It is a bailout bank. It took from you because of its mistakes and “profited” with ill gotten funds. You kept Goldman Sachs alive. The government gave you no other choice.
Goldman Sachs, AKA Government Sachs, is very active politically. It has sought systematically to get its people into positions of power around the world.
The second best thing to do after having one of the bank’s own in positions of power from the bank’s perspective is to give piles of money to politicians who are likely to be friendly. (Or can be swayed to be friendly.) This is what they did for example with Barack Obama in 2008.
We have no horse in the presidential race as we often say but we sure have an issue with Government Sachs, the bank which long ago should have died but was saved by virtue of its connections in government. (Not the only bank.) The bank then, post-2008 went on to expand further around the world all fresh and “recapitalized.” (Recapitalized with your money.)
Yeah, well maybe officially. If tomorrow Citi or JPMorgan were to blow up I’m pretty sure the Fed would be right there to prop the crony banks if it had to. (In the Fed’s eyes.)
But this looks good for the Fed. It signals “recovery.” Something which is particularly important in the lead up to a potential rate hike later this month. So great. No more too big to fail.
I will note this again because it should be noted again and again. Goldman Sachs should be dead. Door nail. Kaput. Finito. Gone. A piece of history. Expired.
But Goldman Sachs, Government Sachs, lives because it got bailed out by you the taxpayer. You’re the one who felt the brunt of the Great Recession. You who lost your home. You who moved in with the kids to make ends meet. You who went on food stamps quietly in desperation.
Ned Beatty isn’t totally right here but there’s a good bit of truth in what he says. Regardless below is one of the greatest scenes in all of cinema and everyone should see it.
Yup, that’s Ben Bernanke. The early years.
Well no kidding Mr. Bernanke. What makes you think that? Now?
It should be noted that it is very hard to write campaign checks from prison. That is really frowned upon. Outside of the big house however funds can flow to influence peddlers freely. And Obama made it clear who the bankers owed for their “freedom” when he explained to a group of senior banking executives post-acute crisis that the only thing standing between them and the “pitchforks”
Yeah Hank, yuck it up.
The video is embedded in the linked article.
The reason for increased wealth inequality is because of the fiat financialization of the global economic system. Once we completely detached from gold in 1971 it was off to the races for many folks with assets and at least peripheral access to the Federal Reserve system.
Funny, gold was always feared as a tool of the rich. Yet it wasn’t until true fiat money came,
Goldman played the American people and continues to play the American people. It has alums placed all through the US government and in the EU. The reason sorry old Greece got into the European Union was because of some Goldman sleight of hand. So to some degree that particular corner of the ongoing financial crisis is Goldman’s fault.
Goldman Sachs should be no more. In 2008 it should have died. Kaput. Done. But instead Bush Treasury Secretary Hank Paulson,
We have a copy of this book and will be doing a review of it soon. In the meantime, if you’re headed to the beach or lake this summer this might be a good one to take along.*
There is some debate around here as to the world’s most crony company. There are many candidates but consistently in the top 5 or so is Goldman Sachs, Government Sachs.
Few companies have exploited the taxpayer and political connections to the extent Goldman has. Truly it is a company built fundamentally on cronyism.
In 2008 Goldman Sachs was leveraged more than 100 to 1 on its assets. (That is probably a conservative estimate.) When the economic tide turned it was fully exposed.
This is a very interesting article. The author basically makes the case that there are 2 distinct kinds of billionaires, crony and generally non-crony. And he argues that though non-crony billionaires have little if any impact on growth (I haven’t looked at his data but this doesn’t seem crazy to me.) the crony billionaires have a huge negative impact on economic growth.
Though the author implies that that non-crony billionaires are a neutral factor (in growth terms) in an economy is some sort of surprise to we free market types,
Greece, the sovereign state, is no more. The last desperate effort to fight the banks died and now the Greek people will be crushed under the banker boot.
Did the Greeks make their bed? Yes. Did the banks entice the Greeks into bed? Yes.
The Germans got the beaches and islands they wanted so good news! Klaus and Gretta will still be able to get a sunburn next year while on holiday. Maybe while staying at a nice walled and guarded villa.
As we’ve noted before, Greece was “subprimed” into the European Union. Athens didn’t really have the economy to be included in a wider “United States of Europe.” But with a little creative financial shuffling Greece got in. Much of the creative shuffling was done by Goldman Sachs.