There seems to be an endless supply of firm opinions on why the economy collapsed in 2008. Conservatives blame lending to poor people, and liberals claim it was a lack of federal regulation. I tend to lean towards the latter column, but rather than taking my word for it, here are a list of good books that analyze precisely how things went south those long years ago. They may not aid us in preventing a future hit, but at least the effort is commendable.
In my last video, I warned folks about Wall Street’s likely attempt to weaponize the Coronavirus panic in service of their financial interests. I also noted that Goldman Sachs has cultivated such a close relationship with the federal government that it managed to completely destroy a competitor (Lehman Brothers) during the bailout negotiations of 2008.
But there is more. As markets reel from the virus’ impact, our lovely friends have released an updated report on U.S. GDP for the second quarter, suggesting an upcoming 24 percent drop.
How convenient. Sounds like a great way to further tank the economy, allowing the Goldmanites freedom to make a killing on shorting strategies, plus accumulate dirt cheap shares.
Now hold on, the skeptic might say, what happens if the market declines so Goldman Sachs is also in trouble?
It’s quite simple. They just give a ring to the Treasury Department, led by none other than Steven Mnuchin, the retired Chief Information Officer for Goldman.
If you watch your 401k undergo further decline in the following weeks, just remember who is walking in “Fields of Gold.”