Goldman Sachs - a huge bubble making machine by fdjerue7eeu


									Goldman Sachs - a huge bubble making machine
It was not long before Matt Taibbi in Rolling Stone magazine published a strong
article, caused uproar in the Western media, Goldman Sachs has sent people to
- From high-tech stocks to high oil prices, Goldman Sachs led the Great Depression,
the market operation every movement, and now they have to begin to take action
the ... ...
About Goldman Sachs, the first thing you need to know is: it is everywhere. The
world's most powerful investment banks, like a vampire entrenched in the
human head monster, ready to any of its tentacles into a lucrative corner. In fact, this
will be recorded in the annals of great crisis, the Kingdom of the U.S. economy
suffered heavy losses during the tragic history, compiled and performed by Goldman
Sachs looks more like a good show. We take a look at what are the actors in this play:
the Bush administration's last Treasury Secretary, Henry Paulson,
Goldman's former CEO, he used a billion of your taxpayer money, save a
lot of place on Wall Street, he his old friends; who work at Goldman Sachs for 26
years, went to United States Treasury Secretary Robert Rubin, former Chairman, from
where Paulson got 3 billion dollars in assistance; Paulson has spent tens of 100
million U.S. dollars, to help save the mess of Merrill Lynch, Merrill Lynch, an
important figure at a time when one of Yue Hantai for - a former Goldman Sachs
banker, has just spent 87 thousand U.S. dollars to buy their own office carpet; Robert
Steele , executives from Goldman Sachs, Merrill Lynch, after the disintegration of the
self-Merrill Lynch, to himself and the team made a 200 million 25 million U.S.
dollars in severance pay; In addition to these people, there the previous
government's chief of staff, Joshua * Bolden, the current
government's key economic aide 马克帕特森 - A year ago he was still on
Capitol Hill to lobby on behalf of Goldman Sachs, and former Goldman Sachs head
Aidelide, Paulson sent him over to the AIG rescue program, a move to Goldman
Sachs profit 13 billion U.S. dollars; Goldman Theatre actors include the National
Bank of Canada and Italy, executives, World Bank executives, in charge of the New
York Stock Exchange, the New York Fed's last two chairmen (of which A
Goldman Sachs is currently serving) ... ... the list goes on. However, those with
Goldman Sachs trying to enumerate the celebrities out, it is almost impossible task.
We only know this: America will always in the grasp of Goldman Sachs - even if the
U.S. were washed sewage, Goldman Sachs will also find a way into a drainage pipe
(... ...). This is the biggest loophole of Western democracy: the freedom of
non-governmental organizations will always match for the organized greed.
In the shadow of Goldman Sachs, the U.S. has become a money-making machines for
the bank. It controlled the whole economic life, waving greedy tentacles into every
economic crisis into the pocket doors to the loss. High oil prices, rising interest rates
personal loans in financial losses recently racked up more than half of the pension,
mass unemployment, the future of advance tax was ... ... you lost the money, certainly
doubt that they went, - no exaggeration to say that Goldman Sachs is the answer to
this question. The bank is like a pump, an endless stream of money from the hands of
those who most need them snatched away, transport to the most people do not need
their hands - that is, those rich people. Goldman's script is very simple, first
of all, they position themselves in the speculation of the Zhong Xin began the sale of
a worthless asset, and through political support and Jin Qian means of bribery, and
corruption of government cooperation, Xiugai trading rules, from the middle class the
hands of plundering the wealth and the working class; such as bankruptcy of millions
of people, they then reversed the process, playing the role of philanthropist, to provide
assistance to the people, people have to pay interest should take back their own money.
20 years since the last century since the game has been played several rounds. Now
they play a - more crazy than ever, and bold. If you want to know how this economic
crisis is formed, it had better look at who benefited during the crisis, in order to
understand this, we must first look at how Goldman Sachs, it's the game. I
will show you the famous five economic bubble, especially in this last year, strange
unexplained fluctuations in oil prices. Five have resulted in numerous bankruptcy, and
afterwards had to accept aid - of course, the list of losses, never had the name of
Goldman Sachs.
The first bubble: the Great Depression
Goldman Sachs, Wall Street speculators are not born, it is life and death struggle in
the gradually growing up. Founded in 1869, is the German immigrant Marcus
Goldman and his son Samuel Sachs co-founded. They are a pioneer in the commercial
paper business, Goldman Sachs was rumored earlier in Manhattan by the city to do
business fortune short-term notes. As the most famous U.S. financial disaster in
history, the Great Depression of the many features of the various crises in the future
had recurring. At that time, individual investors, Wall Street used to fool the main tool
is the "investment trust", as that now there, like hedge funds,
investment trusts is also the large number of small investors Qian gathered together,
invest in a large portfolio. The specific composition and amount of investment is often
confidential. This gives small investors a great sense of satisfaction - think of it, You
can spend hundreds of dollars, you can play with the same Wall Street tycoon game!
Today, this investment is still being sought after, because it gives the little guy with
limited funds available to take part in speculative trading opportunities. Stealing
money in that war, the Goldman Sachs little bit late. Thus, they regret it, immediately
threw himself into the game itself. "Goldman Sachs Trading
Company" was started in the company first issued 100 million dollars face
value of 100 shares of stock, then use her own money to buy all of them, hanging the
public's appetite enough, they to 104 U.S. dollars The unit sold a 90%
share; Next, Goldman Sachs continues to push self-hype the company's
stock. At the same time setting aside money to set up a
"Valentine's transition Trust" - a poetic name, has
issued millions of shares. Then they use their shares to buy the money set up the
"Blue Mountains trust." Goldman banks to hide is behind all of
these investment trust, Blue Mountain Trust initial issued 725 million shares, there are
625 million shares owned by Valentine's crossing all, of course, ultimately,
they are all owned by Goldman, Sachs. These trust each other to form a delicate
layers of lending relationships, for example, with one U.S. dollar can take nine U.S.
dollars for deposit, then it can take 90 dollars 10 dollars, then, if it is not see through it,
you can re-use 900 dollars, so the cycle continues. Until one day money-strand breaks,
you do not declare all the money paid. That investment for you will lose everything.
In the "Great Depression, 1929" This book, the renowned
economist 约翰肯尼斯加 Brisbane on the behavior of Goldman Sachs made a
wonderful description: He believes that Valentine's transition and the Blue
Mountains was a typical representative of the trust investment companies, they It is
clear to the frenzied leveraged investment behavior, which triggered the Great
Depression was the culprit. Converted into current dollars, total trust speculation
caused the loss of up to 475 billion U.S. dollars. "This no doubt is a crazy
behavior," Gabris said, "If only these people mad to explain
with words, then this is really spread too wide of the witches."
The bubble: high-tech stocks

65 years after the Great Depression, Goldman Sachs has become increasingly strong
together, it became the dominant player in the securities underwriting business. In 西
德尼韦恩 Berg - a former assistant porter under the leadership of Goldman Sachs
opened a new era in business IPO, making it the company's basic means of
raising funds. The twentieth century the seventies and eighties, although Goldman
Sachs not do anything now that anything they want, but it has already become the
country's top companies, job seekers rush to Wall Street.
The strange thing is, when the company was to "abide by professional
ethics" and "not to make quick money" and gained
world renown, executives believe a famous "long-term greedy."
The early nineties, a former Goldman Sachs employees left to tell us that he had
witnessed the termination of his boss, a very profitable deal in the long term the deal
failed. "Even if the other party breach of contract, we will return the
deposit," he recalls, "all our acts are very legitimate and fair.
'Long-term greed' means we will not to earn quick money and
damage the interests of customers."
But then, as Goldman Sachs, Robert Rubin, President Clinton entered the White
House to follow all become different. Rubin started working in the
country's economic affairs committee, was made Minister of Finance. At
that time, the President of the U.S. media on the young couple Ruchirukuang: baby
boomers age out of the ruins from the culture of a pair of yuppies, eventually became
the White House - this story is really excited. Robert Rubin is also a confidant of their
deified by the media, he is described as the planet's most intelligent people
- Einstein, Newton, Mozart, Kant ... ... with Rubin are not worth mentioning
compared to .
Goldman Sachs, Rubin was a typical one: the value of 4000 U.S. dollars wearing
expensive suits, his face almost no facial expressions, neutral, modest, and never see
his panicked look. All Americans believe that Rubin's mind is the best
guide the U.S. economy. 1999 issue of "Time" magazine cover,
painting is Robert Rubin, Larry Summers, his deputy, three Federal Reserve Chairman
Alan Greenspan, the headline above is also added: "The Committee to
Save the World" . Rubin maintained that the U.S. financial market
regulation is too strict, and should then be more open. Thus, the Clinton
Administration conducted a series of profound impact to the global economy of
reform, starting with Rubin's old firm Goldman Sachs for his mad pursuit
of short-term profits downstream regulatory failure.
In the Internet era, even without financial common sense knows that a
company's secret of success: life technology genius came up with a dirty
idea, and then listing and financing, he wrote on a napkin ideas into products, with the
media sought after, and finally sold to millions of investors. Wall Street's
game is also very simple to bring a watermelon with a ribbon packaging, from 50
dropped to floor windows, while people bid, before the floor it is a soaring market
bets, as long as the withdrawal of the watermelon before you throw rotten money, you
Looking to make money is easy, but most investors do not realize is that investment
banks have quietly changed the rules of the game. They often double-standard
transactions: some of the people, their insiders know the real value of the stock; To
others, it is the blind pursuit of high external investors. In addition, the Internet bubble
years, Goldman has created another way of making money, that is, the manipulation
of the market regulatory norms. First of all, to surgery, that is, the quality control of
listed companies.
"After the Great Depression, Wall Street, the qualifications of listed
companies already have strict regulation." At a large hedge fund managers,
"said a company to obtain listing status, must be set up for five years, and
profits for three consecutive years. But at that time, Wall Street confused forget about
this provision. "vigorously stirred garbage stock Goldman," if
necessary, they may even produce an analytical report, said, "Ugutsu
net" This site is an value of 100 U.S. dollars. "
The problem is that outsiders do not know of any rules changed. "Internal
people know," the fund manager said, "Rubin course, aware of
past underwriting standards, 1930 has been like this."
Flo Rida Jieyilite professor of finance at the University, has devoted IPO research, he
said that investment banks like Goldman Sachs should be clear that many new shares
they are not utterly worthless speculation. "The early eighties, they asked
the company to market profit for three years, and later turned into a year, then a
quarter later, when the Internet bubble, they are not even new in the future
profitability of listed companies have any requirements."
Goldman Sachs has always denied the threshold was lower IPO, but the figures show
that they are lying. In this speculative, with the 20th century, the same as that of 20
years, Goldman Sachs entered late, but the crazy development. The beginning of 1996,
they have an unknown, poor financial records of small companies listed on packaging,
the company called "Yahoo!" - Of course, that one of their good
fortune. Goldman Sachs then the title of "King of IPO of Internet
stocks." Operation in 1997 they listed 24 companies, of which one third of
the treasure in a loss in the IPO. In 1999, Goldman Sachs operation of the 47 IPO,
including the abortive Webvan and eToys, the accumulate method with the Blue
Mountains and then crossing the Trust similar to Valentine. The first four months of
2000, they again operate 18 companies listed, of which 14 losses. As a master IPO,
Goldman Sachs profits in this area is much higher than counterparts in the bubble
peak in 1999, Goldman's IPO shares average price increase of 281%
compared with the average Wall Street is only 181%.
Goldman's impressive record of how to achieve it? Their answer is
"technology ladder" - in fact what they are good at speculation
of new shares of a series of procedures. For example, the coil of network do come to
Goldman Sachs IPO, the first to sign the following terms: determine the issue price,
circulation, Ugutsu Network CEO need to join a road show, closer to and away from
investors. - These are certainly not free, Goldman Sachs issued common stock will
receive a premium of 6% -7%. Then, go to their high event to discuss several major
customers and let them below the issue price in advance (for example, $ 15 per share)
Subscription most of the shares, in exchange, they agreed to the listing of new shares
to help Goldman Sachs shares higher. So the circle of people knew only the reserve
price of new shares - at the same time, external investors can only get silly saying
nothing prospectus. After the stock market, Goldman Sachs and its accomplices
quickly pushed the price to $ 25 per share, a premium of some (say a total of 500
million U.S. dollars), of which 6% -7% of the time Goldman Sachs profits.
Webvan and NetZero in the two companies during the IPO, Goldman
Sachs's "ladder of technology" lead to a lot of
complaints from shareholders, Kramer, senior manager for securities firms Goldman
Sachs 尼古拉梅尔 also found violations, but his boss - at the time the securities
industry giant, and later career as a talk show star 吉姆克雷默 - I was one of
Goldman's accomplice. Meyer later told SEC (Securities and Exchange
Commission), in the Kramer company for three years, he has been forced to cope with
Goldman Sachs the "technology ladder" behavior.
"In my own eyes the fact that Goldman Sachs is atrocious criminal
gang," Meyer said, "that they created a bubble economy and
subsequent market collapse. They malicious stock price manipulation, deception
small and medium investors in the high order receiving." 2005 years, the
Goldman Sachs as its "technical ladder" irregularities pay a fine
of 5 million U.S. dollars. Than its profits in recent years, this penalty is negligible.
(Although Goldman admit violation, but has refused to answer any questions about
this period of history)
Another Goldman Sachs Tips is "phishing technology" - that is
bribery. They sell new stock discount executives of listed companies, will continue for
them in exchange for the privilege of underwriting stocks. In order to stock up as soon
as possible so that as soon as possible corrupt executives income, investment firms
will deliberately underestimate the stock issue price, after the stock market is more in
demand (?). For example coil of net stock issuance will be $ 20 per share, Goldman
Sachs will be $ 18 per share price, first to sell 100 million shares to their CEO. The
new shareholders of the benefits are to flow so the pockets of CEO.
Goldman has admitted to eBay's CEO Meg Whitman sold millions of
dollars in discount stock in exchange for the company's future investment
banking, and Meg Whitman, Goldman Sachs, later became a member of the board of
directors. In 2002, the House Financial Services Committee released a report that
Goldman Sachs gave 21 executives of client companies pay bribes, including
Yahoo's founder Jerry Yang, were sentenced for embezzlement former
Tyco CEO 丹尼斯科斯 Lowis base, and the infamous Kenneth Lay Enron scandal.
Goldman Sachs, angrily called the report "a serious distortion of
facts", but shortly thereafter, they bribe in a New York survey was fined
100 million a million dollars. At that time of the New York State Attorney General
Eliot Williams than the policy said: "The discount to the company
executives to sell IPO shares is not a harmless reciprocity. Between the purpose it is to
win investment banking, it can defined as a commercial fraud. "
It is these acts of Goldman Sachs, the Internet bubble into the history of one of the
most serious financial crisis: Only the Nasdaq lost 5 trillion on the market value. The
key is not the problem is that people lost money, but that investment banks earn
money. Crisis on the one hand to tell people high-tech stocks: market bubble will
eventually subside, it also teaches bankers how to create a bubble. Vampires are
pleasantly surprised to find that the free flow of capital in the financial industry into
the era of public ownership, manufacture foam is so easy. And the more crazy the
market, they get bonus too high.
From 1999 to 2002, Goldman Sachs paid a total dividend of 285 million - an average
of 35 per year per employee million. Since then, Wall Street learned that to win the
huge dividend, you must create a bubble. In this game, driven by the teaching of
Goldman Sachs, "long-term greedy," was thrown into a
Market is no longer an established business, and then down-profitable market, but
investment banks will become someone else's money into their own bonus
tools. You put 50 high-tech companies listed on packaging, even if they all went out
of business within a year, but also how what? Wait until the Securities and Exchange
Commission to give you a ticket, you use the dividends to buy a sailing yacht have
been six or seven years, and this time you have left Goldman Sachs - you may
become the Minister of Finance, or when the New Jersey governor (like Choco Gold
did, before he became governor of New Jersey five-year management of Goldman
Sachs, the IPO business for a full 2 earned 300 million U.S. dollars, was innocent but
said he "never knew technology ladder What ")
For an annual salary spending over 70 billion dollars in banks, 100 million fine of 1
million U.S. dollars is simply a joke, can not play a deterrent role. After the Internet
bubble burst, Goldman Sachs no incentive to reflect on their own profit model, they
are just trying to find the next opportunity to create a bubble. Thank Robert Rubin,
Goldman Sachs, he helped found a.
The third bubble: - crazy housing market
   Goldman Sachs real estate bubble in the role of the disaster is not difficult to
perceived. The basic gameplay is lower underwriting standards, but here is no longer
the standard IPO, but mortgage lending standards. Almost everyone knows mortgage
dealers have insisted for decades should be able to purchase property owners pay
about 10% of the total price of the down payment, have a stable income and good
credit record, must be their real names, but to the beginning of the millennium they
suddenly lost it all went Zhuawa Guo, began to lower lending standards, what a
hodgepodge of people can be purchase mortgages.
   If there are no investment banks like Goldman Sachs covert manipulation,
it's something that will not happen. These investment banks to create
financial instruments to those who purchase mortgages packaged and sold to
unsuspecting pension funds, insurance companies. This has created an unprecedented
huge market for the toxic debt. In the past, no bank would lend to a breach of contract
for ex-convicts, the banks know this is bound to result in bad debts. In other words,
you can not provide loans to those who are not qualified people, unless you can turn
the subprime loans made to sell bonds changed hands again people who do not know
the ins and outs.
   Goldman Sachs uses two methods to hide their transactions and toxic debt. First,
they bundled hundreds of different mortgage made of collateralized debt obligations
(CDO). They will then sell to investors CDO idea is: there will be good because some
of the mortgage repayment record, investors have no reason to worry about those
problems, in general, CDO or a very good investment tool. Therefore, the junk
mortgage suddenly became a side into a AAA investment grade assets. Second, hedge
their bets, Goldman Sachs was AIG and other companies to provide insurance for the
CDO, which is credit default swaps. This is basically a credit default swap between
AIG and Goldman Sachs, a horse races: a breach of criminal records Goldman betting
people will continue to default, AIG will bet they will not.
   These transactions have only one question: is the federal regulatory agencies that
they prevent sticking to the risk of speculation. CDOs and credit swaps derivatives
such as have resulted in a series of serious financial disaster: Procter &
Gamble and Gibson Greetings have suffered heavy losses, Orange County, California,
had to default in 1994. Then the federal government Accountability Office (GAO)
report recommended strict control of such financial instruments. In 1998, for the
Brooksley Born Commodity Futures Trading Commission also agreed. In May of that
year, she distributed a letter to business leaders and the Clinton administration,
indicating that banks are required to disclose more information about derivatives
trading and to maintain reserves to reduce losses.
   More government regulation is not Goldman Sachs want. "Banks are gas
crazy, they want to stop government regulation," former CFTC Director of
trade and markets, and current University of Maryland law professor Michael
Greenberger said: "Greenspan, Summers, Rubin and Securities and
Exchange Commission Chairman 亚瑟里维特 want to stop government regulation.
   According      to    Greenberger's       memories       of    the    Clinton
administration's        economic     management        of   four    groups    -
"particularly Rubin," against the most fierce. Born they request
a meeting and consider their situation. She refused to compromise, and to continue to
push to increase the supervision of financial derivatives. Then, in June 1998, Rubin
publicly condemn her actions, the final recommendations of the Commodity Futures
Trading Commission denied Congress the power to monitor. In 2000, the last day of
the meeting of Congress, the U.S. Congress passed the now infamous Commodity
Futures Modernization Act, in the final 1 minute into the 11,000-page budget bill and
almost without any debate to speak. Banks are now free to trade default swaps and
   But the story does not end. Credit default swaps AIG main contractors in 2000,
New York State Insurance Department to ask whether the credit default swaps as a
regulation. At that time, the office is a former Goldman Sachs vice president, Neil
Levin is responsible for his decision not to regulate credit default swaps. Now that
banks are free, like the number of mortgage bond underwriters on the number of
underwriters, to purchase the number of how many credit default insurance, the
purchase of Goldman Sachs by human greed spread around the financial virus. To the
real estate boom peaked in 2006, Goldman Sachs worth 76.5 billion U.S. dollars
underwriting mortgage securities, one-third of subprime mortgages, most of which
they sold to pension funds and insurance companies as a class institutional investors.
The troubled real estate is a huge garbage dump.
   Such as that year issued 400 million 94 million U.S. dollars of GASMP Trust
2006-S3 Mortgage. Many mortgage loans are second mortgage loans to borrowers
who own their housing loans accounted for only 0.71% of capital, in addition, 58% of
the loans include loans with little or no relevant documents - not the
borrower's name, no home address just zip code. However, the two major
rating agencies, Moody's and Standard & Poor's will
be 93% of the mortgage loans for investment grade bonds rated. Moody's
estimated that less than 10% of loan defaults. In reality, followed by 18 months, 18%
of loan defaults.
   Goldman Sachs is not alone guilty of insurance. Goldman Sachs may be from the
same gang such as Countrywide's business out to these terrible, completely
irresponsible mortgages and sell them to those poor civil servants and retirees, to
pretend they are not D-class junk bonds. But even in a time when it is done, it is also
the same market, short selling, sho

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