The Case Against Goldman Sachs
The case against Goldman Sachs is simultaneously both simple and complex. It involves many different angles, but some central dominant themes. Let us analyze why exactly it is that they deserve to be investigated and prosecuted.
- The main problem with holding them accountable is that many of the things they do have not been made illegal yet. The prime example: the infamous “Revolving Door” of Washington DC appointees to the Treasury and Federal Reserve from positions at Goldman Sachs. This practice has not only won Goldman Sachs numerous policy victories in the legislature, deregulations that have paved the way for their rampant corruption, but also won them the ability to grant themselves multi-billion dollar bailouts from the taxpayers, no questions asked. Republican campaigns get Goldman Sachs money, Democratic campaigns get Goldman Sachs money, and Goldman Sachs gets the policies it wants.
- When you look at George W. Bush’s administration, for example, you see Hank Paulson, former CEO of Goldman Sachs, as Secretary of the U.S. Treasury. You see an administration waging war, and increasing the national debt in doing so. You see the creation of the problem, then the proposed “solution,” the largest bailout of the big banking system the United States has ever seen. Bush and Paulsen sign the bailout into law, effectively transferring hundreds of billions of taxpayer dollars into the bank accounts of Wall Street’s biggest banks. Obama didn’t argue it but shuns taking any credit publicly, knowing he wants nothing to do with the bailout’s legacy. Naturally, Obama takes on Timothy Geitner as head of the Treasury, former head of the Federal Reserve of New York. So much for “Change.”
- The reach of their corruption extends far beyond Washington, DC and Wall Street into the economies of European nations like Greece, who right now is experiencing a catastrophic situation brought on by Goldman Sachs’ foul practices. Goldman Sachs has placed their former eployees strategically throughout the European Union, and the International Montary Fund, and when economies crash because of dubious debts and investments wagered against those debts, the EU and IMF come to “save the day” but really just end up destroying the national sovereignty of the country in question while enslaving them to debt and many years of insurmountable interest payments.
- Goldman Sachs packaged and sold billions of dollars in subprime housing derivatives and other worthless securities to small and mid-level investors while hiding the fact that they were simultaneously betting against these same securities. Through such fraud Goldman Sachs decimated the 401(k)s, pensions and mutual funds of thousands of Americans.
- Despite blatantly violating the Securities Act of 1933, which “prohibits deceit, misrepresentation, and other fraud in the sale of securities,” and despite a 650-page Senate subcommittee investigation report accusing them of defrauding clients, not a single official of Goldman Sachs has been prosecuted. Rather, the corporation was rewarded, receiving more government bailout funds than any other investment bank. Goldman Sachs then used this taxpayer money to give its senior executives a staggering $44 billion in mega-bonuses between 2008 and 2011.
- While Goldman Sachs CEO Lloyd Blankfein makes an estimated $250,000 a day, regular Americans are losing their jobs and homes at the highest rate since the 1930s. The real unemployment rate (in 2012) is almost twenty percent, far higher than the official number of nine percent, which intentionally factors out workers who have exhausted their unemployment benefits and those working temporary or part time jobs. The so-called “jobless recovery” means that speculators like Lloyd Blankfein can get richer even during a recession. As one private trader, Alessio Rastani, candidly told the BBC in Fall of 2011, “Most traders don’t really care about fixing the economy. If you know what to do, if you have the right plan set up, you can make a lot of money from this [recession].” He continued with another dose of frank cynicism, “This is not a time right now for wishful thinking that governments are going to sort things out. Governments don’t rule the world. Goldman Sachs rules the world.”
- Source: “The People vs. Goldman Sachs” http://www.rollingstone.com/politics/news/the-people-vs-goldman-sachs-20110511
- Source: “Chris Hedges Arrested In Front of Goldman Sachs” http://www.truthdig.com/report/item/chris_hedges_arrested_in_front_of_goldman_sachs_20111103/
- Source: “Anyone Can Make Money From a Crash” http://www.bbc.co.uk/news/business-15059135
- Source: “Goldman Sachs’ Role in Greece a Real Scandal” http://www.iol.co.za/business/business-news/goldman-sachs-role-in-greece-a-real-scandal-1.1258930
- Source: “More than 95,000 Sign Petition Urging Obama To Break Up ‘Too Big To Jail’ Banks” http://www.huffingtonpost.com/2013/03/11/too-big-to-jail-petition_n_2854811.html
- Source: “Chapter Closes on Vilified US Bailout” http://www.google.com/hostednews/afp/article/ALeqM5g2mE5cFAv630R0_Go34RZgS2fl2A?docId=CNG.7d5e8b96a2901608eeaea3e20bdd6446.21
The Federal Reserve bailed out Goldman Sachs to the tune of over $800 billion!