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A "must read" article about GS.

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  • A "must read" article about GS.

    Matt Taibbi's latest piece in Rolling Stone magazine:

    Zero Hedge: Goldman Sachs: "Engineering Every Major Market Manipulation Since The Great Depression" (pdf version)

    A text version:
    The Great American Bubble Machine | Corrente

    Here is a Matt's answer to GS comments:
    Matt Taibbi - Taibblog - On giving Goldman a chance - True/Slant


    I have only one comment. I think it's not limited to GS only, but can be said about whole US finance industry.
    Winter is coming.

  • #2
    "Complicating matters even further was the fact that Goldman itself was cheerleading with all its might for an increase in oil prices. In the beginning of 2008, Arjun Murti, a Goldman analyst, hailed as an "oracle of oil" by The New York Times, predicted a "super spike" in oil prices, forecasting a rise to $200 a barrel. At the time Goldman was heavily invested in oil through its commodities-trading subsidiary, J. Aron; it also owned a stake in a major oil refinery in Kansas, where it warehoused the crude it bought and sold. Even though the supply of oil was keeping pace with demand, Murti continually warned of disruptions to the world oil supply, going so far as to broadcast the fact that he owned two hybrid cars. High prices, the bank insisted, were somehow the fault of the piggish American consumer; in 2005, Goldman analysts insisted that we wouldn't know when oil prices would fall until we knew "when American consumers will stop buying gas-guzzling sport utility vehicles and instead seek fuel-efficient alternatives."

    I remember Mr. Arjun Murti very well. He prophesies 200$/bbl oil in summer '08 just as Goldman, Saches was liquidating its long positions.

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