Skip to main content
  1. News
  2. Politics
  3. Nonpartisan

Goldman Sachs: Record of $23 billion in bonuses for 2009; explaining their economic parasitism


   We hold these Truths to be self evident...

Goldman Sachs is among the most visible financial parasites. Their executives have a revolving door through the US Treasury Department. They profit through “trading,” much like Enron did; including selling investments represented as AAA while simultaneously betting the value of those investments tank. Their CEO says they’re “doing God’s work,” as Enron’s CEO said, “We are on the side of angels.” A US Senate report puts the parasitic cost to Americans at $2 to $4 trillion every year. To put that figure into perspective, that’s an almost unbelievable $20,000 to $40,000 added cost per US household every year. Goldman Sachs is so happy with their “trading,” they’ll pay out a record of $23 billion in bonuses to their top employees for their 2009 work.     

There are professionals in economics and finance using the term “parasitism” in its literal sense to describe our US economy. 
 
 
The four easy steps, explained in detail in their article:
 
Step 1: Sell mortgage-related securities that are absolute junk to trusting clients at vastly overinflated prices.
 
Step 2: Bet against those same mortgage-related securities and make massive bets against the U.S. housing market so that your firm will make massive profits when the U.S. economy collapses. 
 
Step 3: Have ex-Goldman executives in key positions of power in the U.S. government so that bailout money can be funneled to entities such as AIG that Goldman has made these bets with so that they can get paid after they win their bets.   
 
Step 4: Collect the profits - Goldman Sachs is having their "most successful year" and will end up reporting approximately $50 billion in revenue for 2009.
 
Congress is working on policy to further enable the parasites; promising banksters like Goldman Sachs $4 trillion without hearings should they claim need for another “bailout.” What is the solution? Fortunately, the structural solutions are simple to enact and obvious to understand:
 
  1. Over $1 trillion in annual public benefits from ending banks creating bank credit as debt for our monetary system, and enacting monetary reform for public-created money for the direct payment of public goods and services. This idea was supported by 86% of teaching economic professors and many of America's brightest historical minds. Nobel Prize-winning economist Milton Friedman was among the supporters, envisioning less inflation than our current monetary system.
  2. Paying our $12 trillion national debt easily and without inflation as new money is created as the banks’ ability to create credit from nothing is slowed. The savings of the annual interest payment to taxpayers is over $400 billion every year.
  3. Full employment. The government becomes the employer of last resort for infrastructure improvement that returns more than the cost of the projects, and thereby lowing prices.
  4. 2% mortgages, 6% credit cards, 5% interest paid on deposits from state-owned banks.
 
As a professional teacher of economics, our experience is that the above information is best communicated with a visual aid, such as through the video Money as Debt in my article on monetary reform and/or Zeitgeist Addendum.
 
As always, please share this article with all who can benefit. If you appreciate my work, please subscribe by clicking under the article title (it’s free). Please use my entire archive of work to help build a brighter future.
 
MSNBC’s Dylan Ratigan gives brilliant analysis of Goldman Sachs in this 7-minute video: 
 

Comments

  • Gollum 4 years ago

    As to Goldman's bets against mortgage-related securities and against the U.S. housing market, wouldn't it have lost money if the U.S. economy didn't collapse?

    Couldn't other firms have made the same investments as Goldman?

  • Carl Herman (LA County Nonpartisan Examiner) 4 years ago

    Gollum:
    They bet the value of the bundled mortgages would collapse through an unregulated insurance called credit default swaps. Since they didn’t own the mortgages, this is pure gambling. So yes, they would have been paying “premiums” for no return if the values didn’t tank. Yes, anyone could have made the same “bets,” not an investment. Since Goldman accepted AAA rating and didn’t disclose their personal bets that values would decrease, this should be investigated as criminal fraud. Those who purchased at AAA reasonable expectation got screwed.

    As an entire economy we lose $2-$4 trillion a year to these parasites.

    Is this type of evil your “precious,” Gollum? Be careful what you embrace; you may infect your very soul.

  • Travis 4 years ago

    Gollum: Goldman KNEW the mortgages would fail, that is why they took out an insurance policy on the mortgages! They KNEW these mortgages would fail because they gave $800,000 homes to freaking SCHOOL BUS DRIVERS in California. Liar Loans? Exactly. NOBODY needed any documentation to buy a home because Goldman didn't care, they were insured! Goldman or other banks let you pay interest for 5-8 years on your home and when you can't afford to pay them when the ARM adjusts, they TAKE your home and keep your money. They turn around and either sit on the home or "loan" money to the next sucker in line and hope he can't pay the bill either. To answer your question, Goldman KNEW it would cause the economy to collapse, that is why they took out insurance policies on it, a sure sign of a sure bet. The best part? Goldman didn't even own most these mortgages!!

  • The Opposer 4 years ago

    I think is is contemptible that average Americans constantly blame their laziness and lack of motivation on others for the reason why they are poor or middle class. Why don't these bums go to college and work for financial institutions and make money instead of complaining how they don't make what they used too which is because they don't work harder and harder every year to achieve more which is the essence of being competitive. As a "banker" I will pause slightly, crack a gleaming smile and hold back the outright laughter in the coming years while passing the food lines on my way too work each morning. As I sit happily on the beach at my mansion in Costa Rico I will ponder for at least one minute your plight before retiring into absolute happiness for the rest of my life. Stop blaming others and work harder America.

  • doger 4 years ago

    Opposer, it might be even funnier when the Chinese communists pull the plug on the American capitalists since the U.S. owes so much money to them.

  • Carl Herman (LA County Nonpartisan Examiner) 4 years ago

    Opposer:
    We'll offer you Truth and Reconciliation before we prosecute you for criminal fraud. You argue for Enron-style "trades" that can and will be exposed as ripping off the American public. The Senate report estimates the parasitic cost of $2-$4 trillion every year.

    Your time is ending quickly, Scrooge. Will you accept an offer for redemption or face the chains of your labor? "Mankind is your business, Scrooge."

  • j r 4 years ago

    These people work very hard for their money and deserve every penny and more. If you people complaining would get off your lazy butts and start working, you too could be earning millions if not billions.

    Or you could just rise up, pull these parasites and their families out out their mansions and slaughter them on the streets like the foul vermin they are.

  • TC 4 years ago

    I have been in the investment business for over 40yrs and extensively dealt with people in all top investment banks, including GS. I cannot believe how childlike and uninformed many of these accusations are. The words used remind me of all the slanders our two political parties throw at each other these days.
    Believe me, if GS did as poorly as Citi or BoA or MS or others, they would have escaped all these conspiracy theory attacks.

  • Carl Herman (LA County Nonpartisan Examiner) 4 years ago

    TC:
    Your “defense” is propaganda. You claim to be an expert witness. Then, rather than have your expertise address the evidence, you devolve into ad hominem insult. You then act as if evidence cannot be addressed factually and is somehow a matter of calling names.

    All those who elevate themselves to professional consideration of factual allegations dismiss you as a propagandist or unqualified for a serious discussion of our collective billions and trillions of dollars and related policies.

  • TC 4 years ago

    Carl Herman -
    Thanks for helping to prove my point.

  • Carl Herman (LA County Nonpartisan Examiner) 4 years ago

    Sure, TC. Do you have anything intelligent to say as your point other than, I quote from you, “childlike and uninformed,” “slanders,” and “conspiracy theory attacks”? I’ll tell you what I really think: you’re lying as having any expertise in investment. Prove me wrong by taking on the evidence in the article.

    But how about this: you, as a propagandist, have a choice: continue BS-ing for fascist masters or embrace a “Scrooge conversion,” reject fascism, and embrace freedom under the US Constitution. Why don’t you become a whistle-blower through Project Camelot? I know you can’t agree here, but think about it.

  • Travis 4 years ago

    TC is a Israeli megaphone shilling for the synagouge of Satan. If TC truly deals with people in investment banking and this his truly his business, sure he knows that the very foundations of the founding of the Federal Reserve is FRAUD. Here is an idea: Money does not begat other money. You simply can't make money from other money just sitting there. Somebody is getting screwed. The very foundations of our monetary system is FRAUD and LYING. If you took the B.S. out of the Capitalist system, it would collapse overnight.

  • ptor 4 years ago

    Usury is the same as war. Nothing to do with human nature. Wall Street must be run by lizards from space because they have zero compassion for humanity and have extremely pathetic philosophical and moral standards. They are not human!!!

  • Teri S 4 years ago

    Carl: I'm physically sick reading this. This economic and war-mongering dystopia has got to come to an end at some point, right? We know this is transpiring right under our noses (and WE PAY FOR IT) yet we are powerless to stop it? Been re-reading Orwell's 1984. The three phrases that have always resonate the most for me are these:
    WAR IS PEACE
    FREEDOM IS SLAVERY
    IGNORANCE IS STRENGTH

    This nightmarish rhetoric is what has become our reality. I just pray the revolution will be peaceful when it happens. Carl, you are an apostle of truth and I thank you for that. Best to you & yours in 2010.

  • Stand and Be Counted 4 years ago

    I've got a friend who has worked in the financial sector for 15 years. He told me it's all just a shell game using fiat money which they 1 loan 2 heat up market 3 collapse and steal 4 repeat. As long as the "media" won't tell the sheeple, they can do whatever they want.

  • Gene Colburn 4 years ago

    Goldman Sachs Made Tens Of Billions Of Dollars From The Economic Collapse Of America In Four Easy Steps

    The four easy steps, explained in detail in their article:

    Step 1: Sell mortgage-related securities that are absolute junk to trusting clients at vastly overinflated prices.

    Step 2: Bet against those same mortgage-related securities and make massive bets against the U.S. housing market so that your firm will make massive profits when the U.S. economy collapses.

    Step 3: Have ex-Goldman executives in key positions of power in the U.S. government so that bailout money can be funneled to entities such as AIG that Goldman has made these bets with so that they can get paid after they win their bets.

    Step 4: Collect the profits - Goldman Sachs is having their "most successful year" and will end up reporting approximately $50 billion in revenue for 2009.

    Step 5: Understood.
    Use the tax payers money to implement all of above.

Advertisement