Rolling Stone: The Great American Bubble Machine

Taibbi - I would have bet on it. I haven't time to read it, but if he's sticking with his usual form his coarse language detracts from the good journalist he can be.
 
angelatc said:
Taibbi - I would have bet on it. I haven't time to read it, but if he's sticking with his usual form his coarse language detracts from the good journalist he can be.
Click to expand...

Please try to find the time, and then pass the article on to all your disbelieving liberal friends.
 
The article is 12 pages in length, and very hard to read it on the net. I wonder if it's still on the news stands?
 
If you register at scribd (free) you can download it as pdf and view the text much easier. You'll probably come across many other things you'll wan to download as well
 
The one downside to articles like these is it singles out the blame, when there is plenty of blame to go around.
 
Taibbi is an idiot. Deregulation kills people, people shouldn't be allowed to make voluntary transactions.... blah blah blah

I don't know why anyone takes him serious.
 
Epic said:
Taibbi is an idiot. Deregulation kills people, people shouldn't be allowed to make voluntary transactions.... blah blah blah

I don't know why anyone takes him serious.
Click to expand...

His "solutions" may not be in line with Austrian economics but that should not detract from the meat of the article nor should it make him an "idiot". GS has been in line to take advantage of every bubble formed and pushed it to newer heights each time. These bubbles aren't accidents and the people that profit from them (repeatedly no less) aren't accidental participants. There's a reason that there's a love triangle between the Fed, Treasury, and Goldman Sachs.

I was especially pleased to see that GS's employees will take home at least $700K a piece this year, undoubtedly funded by taxpayer dollars and insider trading and market manipulation. Im clearly in the wrong business. The more people that turn their attention to GS the better.
 
I just read part of this in the store, and the article is worth reading.
He does blame "capitalism and greed", but the info about GS is fascinating.
 
Indy Vidual said:
I just read part of this in the store, and the article is worth reading.
He does blame "capitalism and greed", but the info about GS is fascinating.
Click to expand...

He calls it "Western Capitalism" which seems to be corporatism/soft-fascism, as opposed to pure capitalism.
 
Epic said:
Taibbi is an idiot. Deregulation kills people, people shouldn't be allowed to make voluntary transactions.... blah blah blah

I don't know why anyone takes him serious.
Click to expand...
I loved Taibbi's piece. It definitely made a lot of sense. Deregulation or "rigged" regulation IS to blame for this recent credit crisis. That plus greedy chump suckers.

The market is so complex that there is definitely plenty of leeway for the bigger players to prey on the lack of information of smaller players, and the lack of regulation makes it legal for them to do this. Good regulation forces more transparency and levels the playing field. Bad regulation awards monopolies to those who lobby for such.

Folks, I don't think one can escape from the need to do work either way. You can't just expect "good" regulation to pop up, you have to demand and work for it. Absent "good" regulation ensuring transparency and a level playing field, you end up having to do more work to acquire the complete info you need to make a wise investment decision. Frequently, it will just not be made available to you, so the sucker chump just lets greed lead the way and trusts that so-and-so prestigious institution is going to invest his money wisely.
 
It seems many people are quick to label those who aren't aligned 100% with the Austrian position ratherthan finding common ground and insight from the material
 
You guys don't understand - the whole premise in incorrect. It's wrong. Dead wrong. Proved wrong by logic. Palm hitting forehead wrong.

Goldman Sachs may do really bad things, but buying oil futures (or their own stock, or crappy mortgages, etc.) isn't one of them.

Making a voluntary transaction for oil futures is not a crime! It sends more information to the market!

If they are buying oil when the price is too high, then they will lose money when the price reverts to equilibrium.

The word "speculator" has such a negative connotation. Anyone buying and selling stocks/bonds/futures/whatever is speculating. This is very important information that is communicated to the market.

Speculation does not interfere with supply and demand. Speculation is part the process by which supply and demand adjust.

http://mises.org/story/2381
http://blog.mises.org/archives/008327.asp


As for the Great Depression, Taibbi says: "The trading corporation then relentlessly bought shares in itself, bidding the price up further and further. " Yeah, it's called stock buybacks. It's a voluntary transaction. They are forcing no one to do anything.

And in the recent housing crash: "GOLDMAN SCAMMED HOUSING INVESTORS BY BETTING AGAINST ITS OWN CRAPPY MORTGAGES." Yeah, so? It has a bunch of traders. They do whatever they want. They buy and sell in the market with other people that want to buy and sell.
 
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So in other words, Epic doesn't mind if GS has no integrity or morals regarding their financial dealings that end up being at the expense of everyone else. How long have you been a fan of fascism?
 
The two main principles of pure capitalism is competition and merit based success. If you are able to face competition and provide a better product or service then you will succeed. Goldman does not live by this code. Instead, Goldman's main competitors are either failed or absorbed due to Goldman's intimate connection to the US gov't and the printing presses. Lehman, Bear, Merrill were GS biggest competitors. The gov't did not rescue any of them. Meanwhile AIG funnels more than $10billion directly to Goldman outside of the TARP program. Now Goldman is reaping record profits due to lack of competitors and 40% market trading domination. They did not beat their competition on their merits. Therefore GS is the anathema of capitalism. No matter what happens they always come out on top even when they do not deserve it.
 
Epic said:
You guys don't understand - the whole premise in incorrect. It's wrong. Dead wrong. Proved wrong by logic. Palm hitting forehead wrong.

Goldman Sachs may do really bad things, but buying oil futures (or their own stock, or crappy mortgages, etc.) isn't one of them.

Making a voluntary transaction for oil futures is not a crime! It sends more information to the market!

If they are buying oil when the price is too high, then they will lose money when the price reverts to equilibrium.

The word "speculator" has such a negative connotation. Anyone buying and selling stocks/bonds/futures/whatever is speculating. This is very important information that is communicated to the market.

Speculation does not interfere with supply and demand. Speculation is part the process by which supply and demand adjust.

http://mises.org/story/2381
http://blog.mises.org/archives/008327.asp


As for the Great Depression, Taibbi says: "The trading corporation then relentlessly bought shares in itself, bidding the price up further and further. " Yeah, it's called stock buybacks. It's a voluntary transaction. They are forcing no one to do anything.

And in the recent housing crash: "GOLDMAN SCAMMED HOUSING INVESTORS BY BETTING AGAINST ITS OWN CRAPPY MORTGAGES." Yeah, so? It has a bunch of traders. They do whatever they want. They buy and sell in the market with other people that want to buy and sell.
Click to expand...
In one sense or another, you do have a point. Absent regulation, it should be ok for anyone to setup a financial instituition to milk one sucker after another. Eventually the suckers will learn. This IS free market principles in action.

But guess what those now-wiser suckers will demand so they won't get suckered again? "Regulation" of one form or another.
 
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