Matt Taibbi: Goldman Sachs and other big banks re-creating the conditions for another crash

[Amerigo Vespucci]

Wall Street's Bailout Hustle

http://www.rollingstone.com/politics/story/32255149/wall_streets_bailout_hustle

Goldman Sachs and other big banks aren't just pocketing the trillions we gave them to rescue the economy - they're re-creating the conditions for another crash. By Matt Taibbi



MATT TAIBBI Posted Feb 17, 2010 5:57 AM

On January 21st, Lloyd Blankfein left a peculiar voicemail message on the work phones of his employees at Goldman Sachs. Fast becoming America's pre-eminent Marvel Comics supervillain, the CEO used the call to deploy his secret weapon: a pair of giant, nuclear-powered testicles. In his message, Blankfein addressed his plan to pay out gigantic year-end bonuses amid widespread controversy over Goldman's role in precipitating the global financial crisis.

The bank had already set aside a tidy $16.2 billion for salaries and bonuses — meaning that Goldman employees were each set to take home an average of $498,246, a number roughly commensurate with what they received during the bubble years. Still, the troops were worried: There were rumors that Dr. Ballsachs, bowing to political pressure, might be forced to scale the number back. After all, the country was broke, 14.8 million Americans were stranded on the unemployment line, and Barack Obama and the Democrats were trying to recover the populist high ground after their bitch-whipping in Massachusetts by calling for a "bailout tax" on banks. Maybe this wasn't the right time for Goldman to be throwing its annual Roman bonus orgy.

Not to worry, Blankfein reassured employees. "In a year that proved to have no shortage of story lines," he said, "I believe very strongly that performance is the ultimate narrative."

Translation: We made a shitload of money last year because we're so amazing at our jobs, so fuck all those people who want us to reduce our bonuses.

[cbdo2007]

1. Well.....the good news is that I've learned how to profit from the crashes too now...

so next time I'll be ready. I suggest the rest of you out there do the same.

[global1]

2. What's Your Secret?......nt

[Vinnie From Indy]

4. cinnamon

added right at the end as they come out of the oven.

[MsLeopard]

3. Yes, please share

Excactly how do you profit from a crash?

[dkf]

5. Inverse etfs probably.

Or just a good ole short.

[cbdo2007]

9. BINGO!!!!

If there's one thing the last crash taught me, it's that I didn't know enough about the stock market. In fact, like most people - I knew nothing!!

Not anymore.

The govt. isn't looking out for me, lord knows the banks and business aren't doing me any favors, but what I can do is to get my own slice of the pie (as small and insignificant as it may be compared to the whole pie, it makes a world of difference in my small family).

[Carni]

6. I was just thinking the same thing this morning

How anyone with half a brain can't see this coming is beyond me!?!

[JackRiddler]

7. Because they don't want to see it. Exactly like the 2008 crash. Or the 2000 crash.

Besides, the difficulties in meeting entitlements scheduled to be paid in 2040 is the real problem, don't you know?

[Hannah Bell]

24. lol. yeah, that's the ticket.

[yurbud]

8. they were a success...at taking our tax money.

[SoCalDem]

10. Why would we expect anything else?

They were not punished
They made a shit-load of money on the first go-round
The government helped them buy or eliminate their competition
There are millions of suckers customers who lost money and are eager to "make-it-back"..and are willing to do it A.S.A.P.
They know that the taxpayers will always bail them out, even if they keep taking huge bonuses

[amborin]

11. sorry, dupe

[amborin]

12. once again:

The Bankers on Obama's Team

The latest round of Wall Street muckety-mucks now in charge of regulation.

— By Andy Kroll

NewsletterShareClose this Share Box
6 Comments | Post Comment.January/February 2010 Issue
See More Charts
GOLDMAN SACHS CEO turned Treasury Secretary Hank Paulson wasn't the first, or the last, to use the revolving door between Wall Street and Washington. Here's a short list of Obama officials who got their start in the private sector—many, like Paulson, at "Government Sachs."

OFFICIAL
CURRENT ROLE IN WASHINGTON
PREVIOUS ROLE ON WALL STREET

Neal Wolin
Deputy secretary of the treasury (Tim Geithner's No. 2)
Exec at one of the largest insurance and investment firms

Mark Patterson
Treasury secretary's chief of staff
Goldman Sachs lobbyist

Gene Sperling
Counselor to the treasury secretary
Made nearly $900,000 advising Goldman Sachs

Larry Summers
Obama's chief economic adviser
Made $5 million as managing director of a hedge fund

Rahm Emanuel
White House chief of staff
Made $16 million as a partner at a Chicago investment bank

Herbert Allison
Assistant secretary of the treasury (oversees TARP)
Longtime exec at Merrill Lynch; headed Fannie Mae

Kim Wallace
Assistant secretary of the treasury for legislative affairs
Managing director at Barclays Capital and Lehman Brothers

Karthik Ramanathan
Acting assistant treasury secretary for financial markets
Foreign exchange dealer at Goldman Sachs

Matthew Kabaker
Deputy assistant secretary of the treasury
Made $5.8 million at the Blackstone Group in 2008-2009

Lewis Alexander
Counselor to the treasury secretary
Chief economist at Citigroup; paid $2.4 million in 2008-2009

Adam Storch
Managing executive of the SEC's Division of Enforcement
VP of Goldman Sachs' Business Intelligence Group

Lee Sachs
Counselor to the treasury secretary
Made more than $3 million at a New York hedge fund

Gary Gensler
Chairman of Commodity Futures Trading Commission
18 years at Goldman Sachs, where he made partner

Michael Froman
Deputy assistant to Obama, deputy nat'l security adviser
Managing director of a Citigroup investment arm

[Amerigo Vespucci]

14. OK, so let's look at it this way...

...let's pretend that Roseanne, or Roseanne Barr, was RIGHT.

Let's pretend that Roseanne and Dan Connor were / ARE "America." Middle America, working-class America, voting America. The ones who watch CNN and MSNBC and Fox and believe what they see and hear.



Mr. & Mrs. Johnny Lunchpail.

NOT active DUers who have facts, figures, and links at their fingertips. People who get up, go to work, come home, have dinner, go to bed, get up, and go to work again, and if they were asked about Democratic Underground (OR Free Republic) might ask "what's THAT?"

How does the stuff Taibbi wrote...and the information you posted...permeate the consciousness of these "Americans?"

Because until that happens, I don't think this stuff is going to resonate in a way that President Obama is going to notice.

He knows who he picked.

WE know who he picked.

Do Roseanne and Dan know who he picked, and do they care?

:patriot:

[amborin]

15. the scary thing is

it is permeating the consciousness of tea partyers

http://www.democraticunderground.com/discuss/duboard.php?az=show_mesg&forum=389&topic_id=7733013&mesg_id=7733013

progressives need to organize and get their own message out

[Amerigo Vespucci]

16. If they understand that life is NEVER a "perfect bubble"...

...then they can be engaged, and the nonsense can stop.

If they can step outside of their "agenda" for five minutes, where things are black and white and right and wrong, then they can add value.

So maybe the time has come to let President Obama know how the people who elected him feel about this.

It may make a difference.

It may not.

But he KNOWS the "base" is pissed. He's not stupid.

He just has his own agenda.

:patriot:

[BR_Parkway]

20. Those of us trying to let him know how we felt got told to sit down and

shut up, it's only been XXX months and my personal favorite "just trying to sabotage Obama"

Mostly by the same group who'd told me I was pouting for not getting a sparkly pony at the inauguration because I had the audacity to say quit treating us 2nd class and live up to your promises - so, you know, whatever

[branders seine]

13. Mission Accomplished!

for the Obama economic team.

[smokey nj]

17. Kick

[donheld]

18. It's all conspiracy theories, or so a friend tells me.

I wish more people would listen to Matt.

[Wilms]

19. k&r n/t

[Political Heretic]

21. Short! Short! Short!

:P

[upi402]

22. "They raped the taxpayer, and they raped their clients."

I was a fool to think Obama would at the very least restore the rule of law. Why do we just grab our ankles? Why don't we at least speak truth to power and investigate these rotten apples.

[Hannah Bell]

23. "performance" = good at stealing

[DisgustedInMN]

25. Why the fuck would anyone...

... be surprised by this? In case you haven't read the resume of who Barack Obama put in charge of the Treasury, perhaps you should now.

Fucking duh!

:eyes: