Tuesday, April 27, 2010

Goldman Sachs Continues to Profit from Global Downturn

Lloyd Blankfein, CEO of Goldman Sachs (Source: UK Guardian)

The US Senate Governmental Affairs Subcommittee held hearings today examining the role of Goldman Sachs in the banking crisis. There were great theatrics as Senators Carl Levin and Claire McCaskill grilled Goldman executives about how GS employees sold junk stocks and derivatives to their clients.

The hearings sound very much like the testimony by Enron executives involved in undermining the energy industry. Unfortunately, many politicians, Democrats as well as Republicans, are beholden to Wall Street, and working-class people are skeptical that any politicians are looking out for them.

GS has also been implicated in hiding problems in Greece's economy. Greece appears to be close to bankruptcy, along with several other European nations, including Portugal, Spain, and Ireland. In 2008, Goldman was heavily involved in oil futures as prices rose and fell--and they, along with JP Morgan, were implicated in manipulating the markets.

In other stories, there is more rumbling on the Chinese real estate bubble as capitalism runs rampant there and the wealthy squeeze out more surplus value from their workers.

(1) http://www.c-span.org/Watch/Media/2010/04/27/HP/A/32230/Senate+Hearing+on+Goldman+Sachs+the+Financial+Crisis.aspx

(2) http://www.spiegel.de/international/europe/0,1518,676634,00.html

(3) http://motherjones.com/kevin-drum/2010/04/chinas-housing-bubble