Goldman Sachs and the Fed: If it ain't broke, fix it

Fed Draws Fire for Oversight 

of Bank-Owned Commodity Operations
2013-07-23 23:20:01.270 GMT


By Michael J. Moore and Jesse Hamilton
     July 24 (Bloomberg) -- The Federal Reserve faces new
pressure to explain why it lets banks trade raw materials and

control supplies after congressional witnesses said regulators

can’t really grasp what lenders are doing in industrial
businesses.

 

GS Elevator Gossip ‏@GSElevator10h

#1: You can get away with just about anything if you're buying the drinks.

Goldman Sachs with the blessing of the Fed is not satisfied with being able to gamble free money from the US taxpayers (borrowed from the Fed at 0 percent) in the high risk commodities futures markets.

They've now figured out that if they own the storage and supply chains for these commodities, they can make money by both manipulating the price and betting on the prices they're manipulating.

And it's all perfectly legal!

And who pays?  The US taxpayer once again foots the bill with higher commodity prices on all end products we buy in retail stores.

 

 

GS Elevator Gossip ‏@GSElevator18 Jul

#1: Too many people are smart enough to be angry, but not smart enough to be successful.

    "Warehouse owners (Goldman Sachs) authorized to hold aluminum by the LME
have created artificial limits on available supply, leaving
prices inflated relative to the massive oversupply and record
production.  Storage practices that have driven premiums higher forced
aluminum users to wait more than 18 months in some cases for
delivery."    JPMorgan, Morgan Stanley and Goldman are among the lenders
whose commodity trading is in jeopardy as the Fed reconsiders
letting banks ship oil and store metal.

 

Gee, it's great to be so smart you can make endless sure fire one way bets.  And know that when you screw up even those sure things, the US taxpayer is there to bail you out.