Goldman Sachs' History of Market Manipulation

Goldman Sachs has a long history of market manipulation, with the bank being involved in several cases of engineering bubbles and profiting from them [1]. The bank's reach and power have enabled it to turn all of America into a giant pump-and-dump scam, manipulating whole economic sectors for years at a time [1]. This has led to significant losses for ordinary citizens, while the bank has consistently come out on top [1].

Key takeaways

• Goldman Sachs has been involved in several market manipulation cases, including the Great Depression [1].
• The bank has a history of engineering bubbles and profiting from them [1].
• Value stocks have been underperforming in recent years, with central banks paying low interest rates [2].
• Intangible assets, such as research and development, are not valued correctly by generally accepted accounting principles (GAAP) [2].
• Online plays can lead to monopoly market dominance, making it difficult for new companies to enter the market [2].

The History of Goldman Sachs

Goldman Sachs was founded in 1869 by Marcus Goldman, who built it up with his son-in-law Samuel Sachs [1]. The bank was initially involved in the use of commercial paper, which is a type of short-term loan [1]. However, the bank's first major foray into speculative mania was in the late 1920s, when it got involved in the investment-trust game [1]. This led to a significant bubble, which eventually burst, causing major losses for investors [1].

The Impact of Market Manipulation

The bank's history of market manipulation has had a significant impact on the economy, with ordinary citizens losing out while the bank has profited [1]. The bank's ability to engineer bubbles and profit from them has led to a situation where the value of far-off growth is higher, and high-margin fast-growing software and digital platform plays have become more attractive [2]. However, this has also led to a situation where value stocks have been underperforming, with central banks paying low interest rates [2].

Why it Matters

The history of Goldman Sachs' market manipulation is significant because it highlights the need for greater regulation and oversight of the banking industry [1]. The bank's ability to engineer bubbles and profit from them has led to significant losses for ordinary citizens, and it is essential that steps are taken to prevent this from happening again [1]. The underperformance of value stocks and the dominance of online plays also highlight the need for a more nuanced approach to investing, taking into account the value of intangible assets and the potential for monopoly market dominance [2].