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The Great Depression

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The Great Depression The Great Depression was the first bubble that Goldman Sachs made explode and got away with next to no penalty. They were just beginning as an immigrant owned business with the idea to gain money by loaning it out to people at interest. They blew up around the depression for their practice in “investment trust”. They offered stock and made the average guys feel like they were investing a lot but they knew little of the process. Once they invested, the company bought their own stocks to make it look good. Then they get another investment in their “new, better” stock than before, and repeated the process. Eventually somewhere in the chain it broke and Goldman owned everything under fake practices. When the depression hit these people found out these investments were worthless and suffered while Sachs excelled. I agree with the author in the way that the practices were morally wrong and should have been illegal. Goldman knew what was happening and pushed back investment on people. I disagree that it’s all their fault though. Goldman at the time was only being ethically wrong, since none of the practices were outlawed. In the end it is the person’s responsibility to know what is actually going on with your money.
Tech Stocks 65 years later they picked up where they left off and began to scam again. This time Goldman attempted to pump up or down IPO on startups no matter how crap or great. With help from big players and the media Goldman would sell terrible and non-profitable stocks of companies to people claiming high rewards. The payoffs were good for a very short while and you could make money, but it was only a matter of time before the investment blew up. Sachs would know this part while everyone else was left to guess, usually failing. The rules were actually changed thanks to company banks, allowing crappy companies to be sold even if absolutely no profit would be seen in the future. Goldman also used laundering practices in which they told a companies’ good high value investors to buy now and at a later specified time, to give the false idea of fluctuation that benefitted investors. While Goldman denied this practice I agree with the author that they knew fully while these terrible companies were no good investments. I also agree that even though the law changed they didn’t tell investors and pushed even harder for a quick buck. I disagree that it was all them. These investors should have done research on the market and these businesses. They were blindly putting their money into personal responsibility comes in.
Housing Craze In the third bubble Goldman Sachs caused and made explode the housing market was exploited. Because Goldman alum was everywhere they were constantly able to change rules to benefit themselves. In the beginning the housing market had respectable rules that were followed. Once Sachs came these were kicked to the curb to allow anyone to get a loan for a house. With this they could do two things. First, they could sell pensions funds and insurance agencies collateralized debt obligations. CDOs were a bunch of debts Sachs said were okay and trust worthy. So companies would buy them in hope of returns. Instead there were defaults and more debt causing the pension funds to run dry and foreclosures were rampant. Secondly, in all this Goldman Sachs would then hedge all their investments. Betting that the loans they sold would not be able to be paid back. A win, win for the shadiest company ever. Lawsuits came flying after all this. Sachs got a slap on the wrist while upping employee standard pay to 622,000 an employee. Again I agree this is not only wrong, but also illegal in practice. Goldman shouldn’t have been allowed to operate any more or at least have stiff regulations. Yet, I disagree its completely their fault. After it was all done everyone knew what they did but they got a little fine so they knew that it wasn’t a big deal. That falls on the government.
$4 a Gallon After everything Goldman had done to the people, Americans were hesitant in buying and investing in Wall Street. The housing market was in shambles from their scheming that they were thinking to find anything else to invest in. Then they considered oil after moving into the environmental business. As they had done before they found a way to control prices. They called the big hitters in investment and told them to buy oil at a certain price making supply and demand obsolete. Even as actual demands were going down they were able to make oil prices jump at a significant rate. While they were the middle man they had a certain set of laws they had to follow, which was regulated by the Commodities Future Trading Commission. Goldman complained that they actually were middle men and need not only to not be subjected to these rules but also be able to be protected from losses. This of course wasn’t true but the CFIC bought it and allowed Goldman to control the market price of oil. I agree with the author about how no matter what there should be rules where supply and demand are the only things that control prices. There should be no way to have that control of goods in the hands of those on Wall Street. I disagree that it is all Goldman’s fault. The CFTC should have known they were up to no good and not bought the crap they were selling. They allowed them to go on regulated.
Rigging the Bail Out In the fifth bubble where Goldman Sachs had a major hand in making it burst the article points at the bail out. Goldman had almost robbed America in every way they turned to tax payer money. As companies were getting bailed out by the government left and right Goldman’s chief competitor was left to collapse and fail. This made Goldman, which was already the major power house at this time even bigger. When AIG got helped in the payout the first thing they did was pay their debt back to Goldman, making it the only company who got 100% of their money back while others were getting 50 cents on the dollar. After this Goldman made the opportunity to switch from an investment bank to a bank of holdings. This gave them access to 10 billion in TARP funds as well as a new overseer who was an ex-employee, which gave them reign over billions on bailout money and allowed them to avoid congressional adults. This ensured that nobody would see transactions or receipts coming out of the bank making it easier to swindle taxpayer money without raising alarms. I agree with the author when he talks about the sudden shiftiness by Sachs and that ex-employees once again went unpunished and even rewarded with massive amounts of bailout money. I don’t agree that it was on all Sachs again. Most if not all the blame should fall on regulation by the government they should have investigated the company from top to bottom.
Global warming
Goldman Sachs did their last and most recent audacity to the American citizens. In the 2008 campaign of Barak Obama Goldman gave almost $1000000 to their efforts to help Barack win his election, of course they expected something back. Goldman wanted a bill passed that allowed “allocations” to be given to companies that went over the pollution amount, knowing that the government would lower the amount of acceptable pollution every year. They know that every year that passed that would become more scarce. In the end Wall Street was able to set and collect the tax on Americans. I agree that once again Sachs messed up, it’s a trash company in every way. I just don’t understand why we haven’t stepped in as a government of the public the stop everything they've been doing.…...

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