Goldman Sachs, the nation’s most powerful financial company, has reported the richest quarterly profit in its 140-year history: $3.44 billion between April and June. Goldman’s record profits come just one month after it repaid $10 billion of TARP money to the US Treasury, freeing itself from restrictions on year-end bonuses. We speak to Matt Taibbi, whose new Rolling Stone article argues that “Goldman Sachs has engineered every major market manipulation since the Great Depression.”

Continue Reading As Goldman Sachs Posts Record Profits, Matt Taibbi Probes Role of Investment Giant in US Financial Meltdown

15 Comments

  1. Sklein–The “economic coup” statement usually comes near the end of a conversation. Generally, it stats with commiserating about some incomprhensible news of the day (such as today’s news that Neil Barofsky’s, special inspector general for the Treasury’s Troubled Asset Relief Program, statement that U.S. taxpayers may be on the hook for as much as $23.7 trillion.)

    U.S. Rescue May Reach $23.7 Trillion, Barofsky Says

    People aren’t stupid–they are overworked, overstressed, and uneasy. They’re trying to understand, but are overwhelmed by the obfuscating blather of the MSM. It helps to give facts and let them put things together at their own pace. One of my favorite “facts” to start with is Shiller’s chart showing the history of home prices since 1890:


    History of Home Prices

    Catherine is a financial wizard who undestands things about money that I can’t begin to fathom–but everyone I talk to understands home prices and I use this chart as a basis to start explaining what banks, the Treasury, and Fed have been doing over the decades. Generally, by the end of the discussion many people come on their own to the observation that “They are trying to reinflate the bubble so they can cash out on the taxpayers dime….”

    (BTW–Sometime in the last couple years I saw a chart that combines Shiller’s 100-year History of Home Prices with the history of national average wages over the same period. I haven’t been able to find it since first seeing it. Does anyone know where it can be found? I’d sure appreciate it.)

    Here’s the link to TAE– The Automatic Earth. They see massive deflation over the next few years in a fast crash. Stoneleigh, who cohosts the site, wrote yesterday: “Deflation will end when the (small amount of) remaining debt is acceptably collateralized to the (few) remaining creditors. Deflation carries the force of a tsunami or a cat 5 hurricane once it builds up momentum.” Only after this tsunami finishes does Stoneleigh see inflation being a significant concern. As you may know, Catherine posits a “slow burn” as TPTB milk the system for all it’s worth. Personally, I’ve no idea what tomorrow will bring, much less the next few years. We live in a non-linear world where I’m always surprised. Either way, I plan for the worst and hope for the best. To my astonishment, I’ve found that “planning for the worst” has generally resulted in becoming a more well-rounded, healthier, happier person.

    Guy–Spirituality and a faith in one self’s abilities go miles in purveying a positive force that others will find engaging and want to be around and build with.

    This is so true. Often when talking with group about the transition, we go through Orlov’s five stages of collapse: Financial, Commercial, Political, Social, and Cultural. Orlov makes the point that the line MUST BE DRAWN at preventing Social collapse, as this is where we stay human. Generally, as people talk the question comes up, “What keeps us from despair?” What allows us to keep our spirits going as we plan for contingencies we may not even have conceived before?” Faith, of course. In groups, I usually define faith as “the certitude that you’ll be okay when you encounter something which you have no previous knowledge or experience of; ie, the complete unknown.” Secularists can get ahold and identify with this definition–the spiritual run with it.

  2. PermaculturePrana:

    I think Ric hit it on the head. I think asset mapping our own lives, taking inventory of the resources we have and discovering new paths through the journey makes a lot of sense. Indeed, I have found that my own resourcefulness, networking has allowed me to navigate new territories and build on the knowledge of others. I think community building is really important – I think that is the achilles heal in trying to get this different model that we would like to see take root. We live in a society where we are dependent on the system to supply what we need, but we have an illusion that we are not dependent on each other. Where I live – and maybe it is the same with you, I don’t even know neighbors I have had for years. There is this social awkwardness that exists – I feel that in some ways we are socially underdeveloped. I think finding community is the key to building resources. As Catherine has pointed out – it is the people you build trust and relationship with that will have your back should you need it – and it is through this networking that we find new opportunity, knowledge and strength. I think that is why, for example, a country like Bolivia, although poor, was successful in getting a government in place that started to put the majority population’s interests ahead of the traditional oligarchical interests. These people had community and familial bonds that were strong – they had organization – they had networks – and they had resilience.

    I think that personal development and broadening inter-personal skills is important for us a individuals to actually get in there and start making these crucial connections and building networks. Spirituality and a faith in one self’s abilities go miles in purveying a positive force that others will find engaging and want to be around and build with.

  3. Ric:

    When I talk to adults about the systemic economic coup they immediately call me a consiracy theorist. The method of habitually discounting what “truth tellers” say by labeling them “conspiracy theorists” is quite a good tool the monopolists have created and employed to keep people confused and uninformed.
    I’m new to this site and I think I have quite a bit of intestinal fortitude ;). What does TAE stand for?

  5. PermaculturePrana – Everyone’s situation is different. How we adapt in this transition depends on our ages, resiliencies, interests, joys, backgrounds, education, skills, assets, family, the country we live in, weather, and on and on. One of my favorite stories about adapting to radical financial collapse appeared in an LA Times artile about the breadlines in Zimbabwe:

    Queuing for crumbs in a Zimbabwe bread line

    In the article, David Kaodza does significantly better than many others because of his intelligence, entrepreneurial skills, bribery talents, and interpersonal charm. Catherine’s stories and suggestions in the Solari Reports are excellent. One of my favorites is her discussion of what to do with money in the May 14(?) report. Her Solari reports have helped push me into discovering that there’s a large informal barter economy in our area that I never knew existed. Am currently learning blacksmithing, welding, and poultry-growing from a third generation blacksmith whose interested in the computer skills I can show him. 😉 As time goes by, I’m increasingly convinced that adapting to changes means finding joy in new friends and opportunities.

  7. great point guy…do you have specific suggestions for what people can do? i’d love to hear any and all perspectives you think are viable!

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