Last week I posted about Goldman Sachs increasing their profit by 50%. Here is some good insight into how they go about doing that.
When you take an economics class they will teach you about the free market system, and the law of supply and demand. It all sounds nice. But when you get out in the real world, companies like Goldman Sachs quickly show it is really about being politically connected, in order to achieve deregulation. Deregulation allows for lots of market manipulation and outright fraud.
As this article points out, if Goldman Sachs were doing this same type of behavior in the Stock Market (that they are currently doing in the Commodities Market) their people would be going to jail for insider trading. But because Goldman so successfully got Washington to deregulate the commodities market, now everything is legal no matter how shady and wrong. The result is prices artificially go up on everyone, while Goldman enriches themse...lves. They don’t achieve this money (the old fashion way) by selling something, or doing something. Nope all they need to do is manipulate an unregulated system. It is a beautiful thing…..For them.
We are at the point where the entire commodities market is controlled by just three companies. Goldman Sachs, JP Morgan, and Morgan Stanley. These companies are too big to fail. They are politically connected. They are filthy rich and have the ability to control everything. And they are. Too bad they can’t be trusted.
This is one more example why deregulation should NEVER be allowed to happen. It wouldn’t happen if the politicians cared or paid attention…..But they don’t.
So when you buy beer or soda, or a car…..and wonder why the price went up…. well now you know. It is because Goldman Sachs wants more of your money in their bank account. They will get it too.
If Obama proposed raising taxes on Beer the Republicans would have a hissy fit. But when Goldman Sachs does the exact same thing (for the enrichment of a select few) the Republicans yawn and look away.