Rolling Stone's Taibbi: How Goldman Sachs has Engineered Every Major Market Manipulation Since the Great Depression

Posted July 3rd, 2009 by legalizeliberty

http://www.rollingstone.c...

In Rolling Stone Issue 1082-83, Matt Taibbi takes on "the Wall Street Bubble Mafia" — investment bank Goldman Sachs. The piece has generated controversy, with Goldman Sachs firing back that Taibbi's piece is "an hysterical compilation of conspiracy theories" and a spokesman adding, "We reject the assertion that we are inflators of bubbles and profiteers in busts, and we are painfully conscious of the importance in being a force for good." Taibbi shot back: "Goldman has its alumni pushing its views from the pulpit of the U.S. Treasury, the NYSE, the World Bank, and numerous other important posts; it also has former players fronting major TV shows. They have the ear of the president if they want it." Here, now, are excerpts from Matt Taibbi's piece and video of Taibbi exploring the key issues.

The first thing you need to know about Goldman Sachs is that it's everywhere. The world's most powerful investment bank is a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money.

Any attempt to construct a narrative around all the former Goldmanites in influential positions quickly becomes an absurd and pointless exercise, like trying to make a list of everything. What you need to know is the big picture: If America is circling the drain, Goldman Sachs has found a way to be that drain — an extremely unfortunate loophole in the system of Western democratic capitalism, which never foresaw that in a society governed passively by free markets and free elections, organized greed always defeats disorganized democracy.

They achieve this using the same playbook over and over again. The formula is relatively simple: Goldman positions itself in the middle of a speculative bubble, selling investments they know are crap. Then they hoover up vast sums from the middle and lower floors of society with the aid of a crippled and corrupt state that allows it to rewrite the rules in exchange for the relative pennies the bank throws at political patronage. Finally, when it all goes bust, leaving millions of ordinary citizens broke and starving, they begin the entire process over again, riding in to rescue us all by lending us back our own money at interest, selling themselves as men above greed, just a bunch of really smart guys keeping the wheels greased. They've been pulling this same stunt over and over since the 1920s — and now they're preparing to do it again, creating what may be the biggest and most audacious bubble yet.

Continue reading at the link:
http://www.rollingstone.c...

output

This article is not liberal or conservative.

On July 8th, 2009 rumcho says:

Rolling Stone is liberal? So what? If you actually read the article you'll find out the author tells the truth about Democrats and Republicans alike. Please read first - don't rush to make announcements.

Taibbi's pretty sold in his

On July 6th, 2009 xenoclone says:

Taibbi's pretty sold in his research and opinions. I think like a lot of us he hopped on the Obama wagon... before realizing Obama's just the product of the financial sector. Personally, I'm saddened to see how many initially good causes (example: protect the environment) are being perverted into tax collections and bank profits.

Goldman's behind-the-scenes take over the world's biggest stock

On July 6th, 2009 SteveMT says:

exchange.

NYSE Halts Transparency, Feels Goldman Program Trading Disclosure Is Unnecessary
Tyler Durden's picture
Submitted by Tyler Durden on Tue, 06/30/2009 - 12:28

In a move set to infuriate and send many Zero Hedge readers over the top, the NYSE has taken action to make sure that nobody will henceforth be able to keep track of the complete dominance that Goldman Sachs exerts over the New York Stock Exchange. This basically ends our weekly Program Trading updates disclosed every Thursday indicating that Goldman has singlehandedly captured all of NYSE's program trading.

In an information memorandum released on June 24 (09-31), the NYSE Regulation team has announced the Decommissioning of the Daily Program Trading Report (DPTR).

From the memo:

The New York Stock Exchange LLC (“NYSE”) will be decommissioning the requirement to report program trading activity via the Daily Program Trading Report (“DPTR”), which was previously approved by the Securities and Exchange Commission (the “Commission”).1 The last trade date for which member organizations will be required to file the DPTR with the Exchange will be July 10, 2009 and therefore the last required date to submit the DPTR will be July 14, 2009.

In the 2007 rule filing, the Exchange proposed to eliminate DPTR. The 2007 filing noted that there was some duplication between the DPTR data and the audit trail information that member organizations provide to the Exchange via account-type indicators at the time that they submit program trades to the Exchange... [A]fter consulting with the SEC, the Exchange announced that it would delay implementation of the two redefined account type indicators, and pending such implementation, member organizations would be required to continue filing the DPTR with the Exchange. The current delayed implementation date of the redefined J and K account type indicators is June 30, 2009. Accordingly, the Exchange still requires member organizations to submit DPTR.

The Exchange has filed with the SEC to implement the decommissioning of the DPTRrequirement following the July 10, 2009 trade date. Accordingly, the last required submission of the DPTR will be on July 14, 2009, which is the second business day after the last trade date for which the DPTR is required.

http://www.zerohedge.com/...

Erased from the NYSE....

On July 6th, 2009 SimpleSam says:

This proves they're trying to cover up a large scale grand theft robbery in progress otherwise they wouldn't just rip it off the New York Stock Exchange. Good lord.

Rolling Stone Magazine=leftist propaganda

On July 6th, 2009 highcottonquinn says:

Anything from Rolling Stone magazine is suspect. What a leftist propaganda rag it has become.

"Men are ruled, at this minute, by the clock, by liars who refuse them news, and by fools who cannot govern."

-G.K. Chesterton

Goldman Sachs Sacrificial Lamb?

On July 5th, 2009 jc-philippines says:

Please read this comprehensive chronology...

http://www.crossroad.to/E...

Obama is a Rhodes Scholar,so is Hillary and Bill Clinton--a brainwashing for the messianic[hehe] with a "secret" agenda for establishing one-world language,culture and supranational govt by the "elite" - that will GRADUALLY ABSORB THE WEALTH OF THE WORLD to be devoted to [this endeavor]

now that the housing bubble,internet bubble, and all the other bubs to bubble are institutionalized, [i personally think] these characters are celebrating and smugly declaring their success--Taibbi might not have been into it, or this might also be premature info leak--something out of their control,a significant indicator of their declining [and yes, superficial] "control". I'd like to think it is.

when will these people stop? never i guess. As George Lucas tells it succintly about Darth Vader when he wrote Ep III-"no one who is evil thinks they are evil...".

-
-They are blinded by their inability to personally experience the consequences of their actions--poverty, powerlessness and death are never real to them. add some sprinkle of messianic "savior of the world" ego rationalizations-and they're f@cked for life.

Irrelevant....

On July 5th, 2009 SimpleSam says:

Who cares if they were followers of Cecil Rhodes or not, that doesn't matter as there's plenty of Rhodes scholars who were smart, good people like Ludwig Von Mises and most Austrian economy experts and soldiers.

What matters is Obama, Bush Senior, Clinton etc. are Globalists & Zionists who don't give a damn about anybody else but themselves.

And that shows through in their religious affiliation "agendas" which call for population control, taking away all people's rights, destroying the family, martial law, and conquest of all nations. That is what they are: Globalists.

sorry-not all rhodes scholars are the same

On July 5th, 2009 jc-philippines says:

no one "group" is homogenous. there are christian zealots and moderates who learn the same thing but do it in different degrees or even depart from it totally. i didnt know mises was a rhodes scholar.

but my point is that it is in the "quote" of Cecil Rhodes that "taught" them of the "gradual absorbing of wealth to use for this one-world endeavor". it must be institutionalized [as suggested/taught],and obama made it so,and his GS associates,we know via this article of Taibbi. so is Rhodes' philosophy that business and government must be joined.

reading about Rhodes gives you a perspective where all this is coming from,and what it hopes to accomplish in "their" agenda.

please read the chronology i found. it is enlightening and places a lot of things in their proper perspectives and events like world war 1,etc. creepy

Matt Taibbi is a Hero./ a tool to bring liberals on board !

On July 5th, 2009 Charlier1955 says:

My heart goes out to Taibbi. He probably knows the truth. He wants desperately to tell the truth. But also knows that if he does he will lose his job and be black listed by the MSM.

I read this article thinking that the next paragraph would announce support for Ron Pauls efforts to Audit the Fed. Then I realized he couldn't in a million years for the reason listed above. He simply gave the hint that it needed to be audited.

Bottom line: he has given us a top quality tool to get truth seeking liberals to start thinking about the real issues. Please send this article with a list of democrats supporting "Audit the Fed" to all your liberal friends.

Charlie

Charles N. Rutledge
Ron Paul Supporter since 1988
Organic Dairy Farmer

PS I tried to find a list of Dem only co sponsors, but couldn't. Could someone please compile one and post it here?

well said patriot

On July 5th, 2009 legalizeliberty says:

to win we must reach out to dems....

"The Constitution is not an instrument for the government to restrain the people, it is an instrument for the people to restrain the government -- lest it come to dominate our lives and interests."
-- Patrick Henry

Here's an update from Matt Taibbi

On July 4th, 2009 Calgary4Paul says:

The NYSE has announced that it will no longer be releasing its weekly program trading data. http://www.smirkingchimp....

Thank you for posting that link

On July 4th, 2009 legalizeliberty says:

btw I am heading next week from Vancouver to Calgary*)(some days in Kelowna in between)

You're not coming for

On July 4th, 2009 Calgary4Paul says:

You're not coming for stampede are you?

no not that hahaha

On July 4th, 2009 legalizeliberty says:

I just need a good paying job now and Calgary oil boom town is the best place for that.

not booming much these days

On July 4th, 2009 Calgary4Paul says:

Still I suppose its a better place to look for a job than most.

last year

On July 4th, 2009 legalizeliberty says:

it took me only one day to find a job there...

Last year was

On July 4th, 2009 Calgary4Paul says:

A long time ago, suppose it depends on what you're looking for.

We are now having a good

On July 4th, 2009 SirThinksAlot says:

We are now having a good look at the face behind the Wall St. curtain.

Disgusting.

Don't kid yourself Rolling Stone is controlled media

On July 4th, 2009 tstorey says:

please watch money masters.

Goldman Sachs is a SECONDARY player.

The men who own the fed and and all of the other central banks in the world are the people who need to be in a Rolling stone article and I assure you they never will be.

Goldman does not "engineer" sh%$.

They do what they are told to do.

Watch Money Masters it was prepared by scholars...not youtube wannabe filmmakers.

ALL of the media has been controlled for a century...Rolling Stone is no exception.

Once you step back you can see that is all a "show" to make you think you live in a free world....complete with courageous journalists...yea...right.

For a liberal magazine

On July 4th, 2009 SirThinksAlot says:

Democrats are not spared

http://www.rollingstone.c...

Didnt read it but they did

On July 4th, 2009 VoteNader2008 says:

Didnt read it but they did do a good piece showing what a spoiled "Fortunate Son" John McCain was(is?). Left biased publication though, I dont think they'd do that to one of their own.

The last great bubble

On July 4th, 2009 Michael Nystrom says:

he talks about is the enormous sums that will be traded in 'cap & trade' and how it is a government handout to Goldman, which it points out, was the largest contributor to Obama.

The article is well worth the read regardless of what stance you think Rolling Stone comes from.

well said Michael

On July 4th, 2009 legalizeliberty says:

Thank you for posting it front page & Happy 4th of July*)))

just a comment about rolling

On July 4th, 2009 libertybrewcity says:

just a comment about rolling stone magazine. it is the most liberal, pro-democratic establishment magazine you will ever find. they will say whatever to bash republicans and do whatever to make democrats look good. f them
--------
Cosponsor map is finally here!!: http://libertybrewcity.bl...
I have the map in 50 by 30 inches so email me if you want the file at libertybrewcity@gmail.com

Rolling Stone is one of the

On July 4th, 2009 SirThinksAlot says:

Rolling Stone is one of the few national magazines willing to perform investigative reporting on topics the MSM takes a pass on. So their slant is left of center, so what? Let the article's assertions stand on their own merit.

Careful...

On July 4th, 2009 theaustrianswer... says:

before you praise this article too much. Attacking Goldman Sachs is only attacking the branch and not the root of the problem: the Fed. That being said, it is nice to have attention on the big New York banks. We just need to point out that they are in bed with the Federal Reserve and make sure not to blame the lack of regulation on capitalism.

www.theaustrianswereright...

Attacking one side...

On July 4th, 2009 SimpleSam says:

Is not attacking the root of the cancer. It's real....It's the whole banking complex.

Where was the MSM on breaking this story?..Nowhere, again!

On July 3rd, 2009 SteveMT says:

And here is why. Goldman-Sachs has huge leverage in the world.

"As of 2006[update], Goldman Sachs employed 23,467 people worldwide. It reported earnings of US$9.34 billion and record earnings per share of $19.69.[17] It was reported that the average total compensation per employee in 2006 was US$622,000.[18] However, this number represents the arithmetic mean of total compensation and is highly skewed upwards as several hundred of the top earners command the majority of the Bonus Pools, leaving the median that most employees earn well below this number."

Here are some GS alumni:

* Henry H. Fowler - 58th United States Secretary of the Treasury (1965-1969)
* Robert Rubin - Former United States Treasury Secretary, ex-Chairman of Citigroup.
* Henry Paulson - Former United States Treasury Secretary.
* Edward Lampert- Hedge Fund Manager of ESL Investments. Brought K-Mart out of Bankruptcy in 2003.
* Joshua Bolten - former White House Chief of Staff
* Erin Burnett - CNBC Host
* Jon Corzine - Governor of the State of New Jersey.
* Michael Cohrs - Head of Global Banking at Deutsche Bank
* Emanuel Derman - Author of My Life as a Quant and co-developer of the Black-Derman-Toy model.
* Jim Cramer - founder of TheStreet.com, best selling author, and host of Mad Money on CNBC
* Ashwin Navin - President and co-founder of BitTorrent, Inc.
* Abby Joseph Cohen - Perma-bull market forecaster formerly of Drexel Burnham Lambert
* George Herbert Walker IV - member of the Bush family and current managing director at Neuberger Berman
* Robert Zoellick - United States Trade Representative (2001-2005), Deputy Secretary of State (2005-2006), World Bank President.
* Mark Carney - Current Governor of the Bank of Canada [79][80]
* Michael D. Fascitelli- President & Trustee of Vornado Realty Trust.
* Neel Kashkari - Assistant Secretary of the Treasury for Financial Stability
* Charlie Haas - Wrestler, who is working for World Wrestling Entertainment.
* Malcolm Turnbull - Australian politician, currently the federal leader of the Liberal Party of Australia.
* John Thain - former Chairman and CEO, Merrill Lynch, and former chairman of the NYSE.
* Robert Steel - Chairman and President, Wachovia.
* Reuben Jeffery III, Under Secretary of State for Economic, Business, and Agricultural Affairs (2007-)
* Romano Prodi, Prime Minister of Italy twice (1996-1998 and 2006-2008) and President of the European Commission (1999-2004)[81]
* Mario Draghi, governor of the Bank of Italy (2006- )[81]
* Massimo Tononi, Italian deputy treasury chief (2006-2008)[81]
* Guy Hands - CEO of Terra Firma Capital Partners

http://en.wikipedia.org/w...

Wikipedia has already been updated to reflect this article!

On July 3rd, 2009 SteveMT says:

There are fast bloggers not wasting any time with this.

Criticism and controversy

"In July 2009, popular news website huffingtonpost listed an item from Rolling Stone Issue 1082-83, where Matt Taibbi takes on "the Wall Street Bubble Mafia" — investment bank Goldman Sachs. Matt Taibbi writes 'The first thing you need to know about Goldman Sachs is that it's everywhere. The world's most powerful investment bank is a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money.' The piece has generated controversy, with Goldman Sachs firing back that Taibbi's piece is "an hysterical compilation of conspiracy theories" and a spokesman adding, "We reject the assertion that we are inflators of bubbles and profiteers in busts, and we are painfully conscious of the importance in being a force for good." Taibbi shot back: "Goldman has its alumni pushing its views from the pulpit of the U.S. Treasury, the NYSE, the World Bank, and numerous other important posts; it also has former players fronting major TV shows. They have the ear of the president if they want it."

http://en.wikipedia.org/w...

Thanks Steve

On July 4th, 2009 legalizeliberty says:

I am glad we live in the age of fast access to information.

"a great vampire squid

On July 3rd, 2009 SirThinksAlot says:

"a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money."

That is just mint.

they got the buzz words out...

On July 3rd, 2009 ecorob says:

to alienate the masses...

"an hysterical compilation of conspiracy theories"...

...the only problem is that the more these words are used, the less effective they become
very soon the "masses" will begin to question why EVERYTHING is a conspiracy theory...

when everything "they" (the money lenders/controllers) said was a lie becomes, in fact, not to be so unbelievable, "they" become the suspects...after that, katy bar the door because their ass will be like new mowed grass!

...and we will be a newly sharpened blade!

you rock on, rolling stone!

O Captain, My Captain, rise up and hear the bells!

Ron Paul Cover

On July 3rd, 2009 Lacandy says:

Dr. Paul should actually BE on the cover of Rolling Stone.

Obama = O.ne B.ig A.ss M.istake A.merica

That story was possibly the greatest thing

On July 3rd, 2009 tog2476 says:

I have ever read. We need to get Rolling Stones to do a story on HR1207. Pass this story out to every one you possibly can, it will definitely start to piss people off.

Maybe if we could clone Ron

On July 3rd, 2009 radmatty says:

Maybe if we could clone Ron Paul and get his clones elected to offices in the State Legislatures and the US House and the Senate and get them appointed to the Supreme Court we could turn this thing around. Then could get back to the values of the Constitution, like Human Slavery, no woman's suffrage and a return to castration for Gays. Maybe we can get it done in the next hundred years. I'm not waiting though, I'm seceding from all State enterprises. Patrick Henry smelled a rat in Philadelphia! He was talking about the coup'd etat carried out against the Articles of Confederation, which in themselves were just another version of socialism lite, like all collectivist government and the Constitution itself.

Rand Paul

On July 6th, 2009 TomJefferson says:

is about as close as we can get, lol!

nope

On July 4th, 2009 trembo slice says:

need government to have a monopoly on legalized force. cant have justice determined at the whims of an individual. that is why government is there - to protect our individual rights.

Ayn Rand convinced me that anarchy is foolish. The Constitution and Declaration of Independence are pretty badass, actually.

The governments envisioned

On July 4th, 2009 radmatty says:

The governments envisioned by the Constitution and even the Declaration of Independence are both mildly socialist in nature. Therein lies the rub. All governments, ie., states, are examples of coercive collectivism. Having "a little" socialism is like being "a little pregnant"

I HEARTILY ACCEPT the motto, — "That government is best which governs least"; and I should like to see it acted up to more rapidly and systematically. Carried out, it finally amounts to this, which also I believe, — "That government is best which governs not at all"; and when men are prepared for it, that will be the kind of government which they will have. " Henry David Thoreau

Are there not more of us then there are of them?

On July 3rd, 2009 Ragnar D says:

Ron Paul is my President.

Question: Who controls

On July 3rd, 2009 cactus1010 says:

Question: Who controls Goldman Sachs?

Here are two big players.

On July 3rd, 2009 SteveMT says:

Sounds like they run a lot, like the U.S.

"Former Goldman Sachs employees such as Henry Paulson and Robert Rubin have held high positions in the federal government, regardless of which party was in the White House."

http://en.wikipedia.org/w...