How Goldman Sachs schemed your money out of... Everything?

[Wilian]

As per typical, when it's actually big things negatively affecting everyone the bought out mainstream media rarely dares to poke it with even a long pole. Lets white-wash shit up false scandals and concencrating on really damaging issues, such as whom some representative sent dick pictures!

http://www.businessinsider.com/goldm...um-scam-2013-7

According to Kocieniewski, a Goldman Sachs-owned company has been involved in an elaborate plan to move around aluminum in a way that has inflated market prices. The report states that every time an American consumer buys a product containing aluminum, they pay a price that has been affected by this maneuver. Sources told The New York Times that in total the plan has cost American consumers more than $5 billion over the last three years,

Kocieniewski's investigation centers on Metro International Trade Services, an aluminum storage company that Goldman Sachs bought three years ago. According to the Times, since Goldman bought the company the average wait time at the storage facility has gone up more than 20-fold. As the wait times are longer, the companies' revenues for storing the aluminium are higher. This cost is reflected in the market price of aluminum.

Aluminum storage facilities are not allowed to mindlessly sit on aluminum — industry standards require them to move 3,000 tons of the metal every day. However, according to the Times, Metro International gets around this law by moving the metal between its own warehouses every day. One analyst estimated that around 90% of the metal moved each day went to another Goldman-owned warehouse.

The body that governs the industry has shown little interest in reforming the practice, Kocieniewski writes. This may be because the body — the London Metals Exchange — collects 1% of the rent from aluminum storage facilities. Limiting the amount of rent received would cost it millions.

This all makes for a somewhat absurd working environment. Workers told the Times that they'd routinely see the same drivers making three or four round trips a day. Some warehouses reportedly sat empty 12 or more hours a day, the Times reports, despite the huge backlog.

If the practice is as the Times describes it, it is very hard to see what value is given to society by the activity. A loose coalition of companies that use aluminium — including Boeing and Coca-Cola — have begun to put pressure on Goldman. However, the issue may go beyond aluminum — JP Morgan, Blackrock and Goldman have all been given approval by the SEC to buy a large amount of copper available on the market and stockpile it, Kocieniewski reports.

[King Shark]

Wow, something needs to be done about that. I am going to be writing my Congressman. And I actually mean that; no sarcasm whatsoever. That's really fucking outrageous.

Thank you for bringing this to my attention.

[Kalis]

Dictate the market, don't be dictated to by it.

[Deleted]

This is entirely legal business practice.

[Deleted]

This is entirely legal business practice.

In America, yes.

[Wilian]

This is entirely legal business practice.

It's legal! Everything is alright now!

[Frostea23]

This is entirely legal business practice.

Yes, legal, but is it ethical? Is it moral?

I'm not saying if it is or is not; I am only stating that this thread is not an argument about this practice's current legal status. The question is should it be made illegal? I can see strong arguments for both sides.

However, in this case, it is blatantly about organized market manipulation, creating an artificial cost to society in the form of wasted energy and time.

[Very Tired]

The Daily Show did a piece on this on Thursday. http://www.youtube.com/watch?v=PLKffO6Tpks
It's legal because of a dumb loophole, like many things.

[Deleted]

Yes, legal, but is it ethical? Is it moral?

I'm not saying if it is or is not; I am only stating the question people are asking themselves should this be legal? I can see strong arguments for both sides.

The issue with that is, for the most part business doesn't care about ethics. Is it good? No, but it still doesn't care.

[GoldNSilence]

America's corruption runs deep.

[Butler to Baby Sloths]

If we allow it to, the market will self-regulate itself and we will enter a new age of prosperity for all.


/sarcasm.

Stuff like this goes to show how untrustworthy and irresponsible the financial sector is.

[Arlon]

Surprise? You should have put theese people on the guillotine during the financial crisis. Nothing has been done to the derivatives market regulations either.

Im really getting tired of this shit. Everyone knows that the financial sector(Not only in US) operates in numerous immoral ways to the detriment of it´s own country and the entire world only to fill it´s own pockets.

[slime]

Yes, legal, but is it ethical? Is it moral?

I'm not saying if it is or is not; I am only stating that this thread is not an argument about this practice's current legal status. The question is should it be made illegal? I can see strong arguments for both sides.

However, in this case, it is blatantly about organized market manipulation, creating an artificial cost to society in the form of wasted energy and time.

I found the problem! Someone is looking for morality from a financial company.

[Stir]

America's corruption runs deep.

If you think this is an isolated phenomenon confined to the US, I have to disappoint you.

[slime]

And this is exactly why we need government poking its nose around in the market, to put an end to unethical business practises by companies.

Unless of course that government itself is unethical... hmm.

[Deleted]

What is this about Golden Mansacks ?

[Dezerte]

Not surprised.

[Butler to Baby Sloths]

Unless of course that government itself is unethical... hmm.

In a democracy, the populace has a big say in who is in government, and can throw out their unethical representatives. Remember, a government does not need to turn a profit to stay in business.

[Deleted]

In a democracy, the populace has a big say in who is in government, and can throw out their unethical representatives. Remember, a government does not need to turn a profit to stay in business.

Bad luck we bribed already everybody you can vote for. http://si.wsj.net/public/resources/i...1008181204.jpg

[Deleted]

In a democracy, the populace has a big say in who is in government, and can throw out their unethical representatives. Remember, a government does not need to turn a profit to stay in business.

True, I mean just look how that PRISM defunding bill was voted in droves. PRISM is history now. Oh wait...it wasn't.