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Ratigan Explains Goldman's Magic Trick
Dylan Ratigan explains "how Goldman Sachs pulled off the amazing trick of making $3 billion in three months time, while the entire financial system collapses, foreclosures are at a record and unemployment skyrckets, and the US dollar collapses."
Also, hat tip to former Goldmanite Nomi Prins for providing the primary data.
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Here's the link: http://www.msnbc.msn.com/id/31510813/
Props to Dylan but he said Goldman "did it legally" but I wonder, because what he describes sounds like a classic pump and dump scheme.
Did Goldman & Paulson create the panic? As they say on the Street "scared money never wins".
you are an ignorant, populist moron, just like dylan ratigan
I just want to fornicate with Alex Witt
careless,
your choice of questioning is curious "did Goldman and Paulson create the panic?" These are questions running through my mind ever since Chicago School think-tankers and the Washington Consensus started hatching "disaster capitalism" plans to actually create a crisis to stunning, numbing, shocking the public into disarray. It is when we are numbed that are defenses are down and we are most susceptible to accepting any termps provided to us by the banksters and policymakers. A crisis like this has been long in coming, and I think we can expect them to create other panics like this one in the future.
Is MSNBC trying to get in front of public outrage, pulling a Glenn Beck?
Yes they are and it is a good thing.
so no more milk for GE from MABAMMA?
Good timing:
NASDAQ Says There's 'Floorwide Outage' On Philly Exchange Wall Street Journal - Tennille Tracy - 24 minutes ago NEW YORK (Dow Jones)--Trading has been halted on the Philadelphia Stock Exchange, an options exchange owned by Nasdaq OMX Group Inc. (NDAQ), due to what traders are calling a "technical glitch.zzz
Every time I hear the name Raj Rajaratnam on cnbc today I can't stop thinking of "naga, naga, not gonna work here anymore."
+1000
Go fishing, and wait for everything to blow up.
for my money it doesn't get any better when he sings "When a Man Loves a Woman"
priceless
Anybody here know Raj personally?
Just in case... as of 1441 the Gang is repeating the exact same patten than yesterday for the SPY.
A bit overboard and clearly simplistic, but it does a great job showing the ridiculous government support of Golden Schmucks. I like it.
It will be fun to see Ratigan, Santelli, and Beck -- with Denninger in support -- leading the pitchfork brigades next March.
Ratigan is getting down right feisty. Do we possibly have a more sophisticated Max Keiser here?
I hope so. While Max has been blazing the trail, he loses something in the translation and the average person can too easily dismiss Max as a crazy.
But Dylan on the other hand is an honest-to-goodness CNBC alum and thus can't be completely dismissed without dismissing CNBC. In the mind of the average Joe, that's not a bad pedigree. A connection I notice Dylan often makes when speaking about the markets.
+1. excellent observation CD.
MSNBC (notwithstanding the fact that it is GE, but soon won't be) has the opportunity via Ratigan to be the lead tv media on the tame the squid movement.
I stress "tv" above because the real information is here at ZH as well as several others.
It is impossible to explain to most people how GS and the gov't have screwed everyone. Dylan is the best in the business and It was hard for him to explain w/o sounding like UFO theorist. What is answer? It's above my pay grade.
I thought he did a good job. Buy low, sell high, using free money from the taxpayers, after first acknowleging that GS wouldn't exist in the first place without the public teat.
1)Stocks crater as old bubble bursts.
2)Collect 70B from AIG and Gubbermint.
3)Stealthily buy 70B of stocks from crater
4)Issue rosy recovery scenario and highest
forecasts on Wall Street
5)Promote and blow new bubble while
selling stocks to suckers.
6)Collect record profits.
7)Rinse, repeat.
Was the dated, annoying backround song really necessary? Campy enough?
The king squid himself
poor lloyd, the government made him take the money
http://money.cnn.com/video/fortune/2009/10/16/f_sl_blankfein_goldman_pay...
I suspect Blankfein is merely the Chief Puppet Squid
I can't believe his smile ... reminds me of Obama swagger
Someone's trippin' and it ain't me.
Lloyd: "God helps those that help themselves."
There's an old gambling strategy that goes as follows. Make small bets with even odds, and every time you make a loss, double up your next bet. That way every win covers your previous losses and you are guaranteed to win win win.
The problem with this is that of course at some point you are going to get a highly improbable string of consecutive losses, and you won't be able to cover a doubling of the bet. This is your black swan.
Of course, if the government lends you the money to cover that doubling, then you can cover all your losses and keep winning, until the next highly improbable string of consecutive losses.
Monte Carlo doesn't work in casonos because of table
limits, and doesn;t work in real economies because of
credit limits. We have passed ours and only a deflation
will fix it...
http://www.jubileeprosperity.com/
Not to nitpick, but the name for a betting strategy of doubling after each losing bet is called a "martingale", not Monte Carlo.
That's the way stock options for corporate executives (and lower level employees as well) work. They issue options to buy the stock at $50, next year the stock has been cut in half so the strike price of the new options is $25, the next year it is at $10. And each year as the stock price goes down the quantity of options goes up because the Black Scholes formula says the right to buy a stock at $10 is worth less than the right to buy it at $50. So if the stock goes up to $20, the execs make a killing on the options with a $10 strike price while Joe Stiff the shareholder is still down 60% on the stock he bought at $50.
But if you work at Google it's even better. Earlier this year they slashed the strike price of options that were already outstanding. So Google execs and employees are now a lot better off financially because their stock took a dive.
Pretty poor explanation of what went on. Goldman did not time the bottom buying up stock just before all the stimulus kicked in. They created the bottom and probably bought the first 2000 points on the DOW to make it look as if the economy had bottom.
If you have the funds and the backing of the government you can not loose. Very disappointed he could not link the false bottom of the market with Goldman creating it.
http://www.goldmansachs666.com/2009/04/is-goldman-sachs-manipulating-stock.html
There was a very interesting article on Zero Hedge the other day. In the data provided, I noticed that Goldman Sachs traded more for their Principal account than the next 14 firms COMBINED. And the next 14 were no slouches . . . Citi, JP Morgan UBS, Credit Suisse, Merrill, Barclays, Deutsche Bank, BNP Paribas, etc.
I mention this because it seems a bit coincidental that the markets have skyrocket during this very same period, and Goldman Sachs' stock price has jumped more than 70% to just about back to where our dear friend Warren Buffet bought in. Their stock prices has more than doubled the performace of any of the US markets!
It's also interesting that this 74% meteoric rise comes when Goldman Sachs has decided to sell stock to pay back the TARP dollars . . . even though they told us they didn't need the money. Obviously, Lord Blankfein, you needed the money because you don't have it to pay back . . . and you don't even have the billions you got from AIG.
WhataMess:
If you could go back and do a retroactive audit on Goldman, and Morgan (not to mention the one everyone thinks is obvious, Citi) to the day before Lehman went down, i think you would find all three of these companies were bankrupt--
we have been monumentally duped!!!!! as a nation to be brainwashed into the idea that all life as we know it would end if we didn't give in to the game of letting these companies run amok with 40x leverage, and all the legalized criminality they perpetrated, then bail them out--Blankfein and Mack made plenty of gestures to insist they didn't "need" the TARP money, that they were just doing their patriotic duty to protect the company that was in need--and Paulson and Bernake perpetrated that lie too.
Our legeslators voted for TARP against all of their constituents wishes, and now the whole thing is being OFFICIALLY SANCTIONED BY their inspector general and so forth--it is time that we as AMERICANS INSIST ON REVOKING TARP!
And Paulson can be called on lies--he claimed that TARP was to keep liquidity flowing while at the same time,he was telling TARP recipient to NOT LEND THE MONEY AND TO DO THEIR PART TO DARWINIAN CLENSE THE SYSTEM BY BUYING UP SMALLER FIRMS--THIS HAS BEEN DOCUMENTED IN A STORY BY THE TWINCITIES.COM IN FEBRUARY WHERE THE CEO OF USBANCORP TOLD A LUNCH CROWD ABOUT THE TRUE TERMS OF TARP--HOW IS THIS BEING IGNORED--PAULSON AND BERNAKE NEED TO BE INDICTED FOR FRAUD AGAINST THE AMERICAN CITIZENS, ISN'T THAT TREASON?
I don't think you would need to do a retrospective check for most banks (I accept the likes of Goldmans have probably robbed their way out of their hole) but the remainder are only alive because of the reversion to mark to fantasy.
The whole recovery is an illusion as is our modern stock market. The DOW from March 2007 (Bear Sterns funds collapsed signaling the credit crunch to anyone with a pulse) was managed. They pumped it up 2000 point on M&As that never happened to it buy ground they could afford to loose. Less than 2 years since the market was finally allowed to correct we are now only 20% away from where we were pre managment (DOW 12000) after the biggest financial crisis in history that is very far from over, it is a testament to market manipulation.
+100
but the market management you speak of began in August of '06.
World markets peaked in May '06, as did the US housing market, driver of it all here. Then, upon Hank Buttface Paulson's ascension to Treasury Secretary, the stock market began it's mechanical bull. Vix went to 10 and stayed there. Remember that bullshit? It was mechanical and absolutely linked to the yen/$ wiggles. This bullshit persisted even after the credit market seize-up in August '07. They managed to take the S&P 500 to a new all time high in October for a couple of days (long enough to psych out "disciplined" technical traders/investors). And then we crashed.
Now we're living through as intense if not more intense bullshit. The indices are managed beyond belief. Higher higher higher higher no one can make sense of it but higher higher we go. Today was a great example of how glaringly obvious the control is: while individual important stocks were wickedly volatile, and while currencies were too, the S&P futures were absolutely motionless for long stretches, and somehow managed to close down less than what would be just normal in a normal market. This time, movement in the Euro/$ has more effect than movements in the yen/$, though both dictate how the index moves. It's such blatant manipulation, day after day, that the SEC's continued silence amounts to clear sanctioning. Therefore, it must be the doings of their masters: the banksters. Duh. But oh man it is evil, and oh man does it suck. Like a vampire squid.
I realy only got into the markets seriously at the end of 06 and it took me a while to pick up the manipulation. A lot of people think that calling manipulation is a sign that the market is going against you but this is not the case for me as I have largely stayed out not wanting to participate in the corruption.
This market is being used to improve consumer sentiment, it has been more of a monetry policy tool the a market. The question is will enough people work this out to kill the market?
Don't worry Ag, Paulson will go down next year as Dems build case for Bush 'caused it all' and BHO did all he could to save us. Dems will need all the reasons (cover) for why market collapsed so rapidly (SP at 505)!
Frankly, I would be surprised if the american public fell privy to the whole finger pointing thing. But on the other hand watching the antics of washington is like watching a monday night episode of WWE raw. I also think that they wanted to see some heads roll when obama got elected, but unfortunately, he is baby bush, and the people's whose heads are suppose to roll either serve in one of his appointed positions, or are his campaign contributor.
Goldman's stock is well beyond where it was when Buffett injected capital into Goldman. Buffett bought $5 billion in perpetual preferred stock with a 10% annual interest rate plus received warrants to buy $5 billion in common stock at $115 per share. That gives him the right to purchase 43,478,260 shares at $115. With the stock around $184, those warrants are $3 billion in the money.
About a month later, Buffett, who has applauded the actions of Bernanke, Paulson and Geithner, wrote an Op-Ed piece in the New York Times encouraging the public to buy U.S. common stocks and said he was doing so with his funds that aren't invested in Berkshire Hathaway. That's about 1% of his net worth. Within Berkshire Hathaway, the other 99% of his net worth, Buffett was a net seller of U.S. stocks and a net buyer of U.S. corporate bonds and foreign government bonds from the 4th quarter of 2008 through the 2nd quarter of 2009.
Why did the FDIC give $30 bill?
OMG, I almost forgot.
Get ready boys and girls because today is Bank Failure Friday.
Tick tock, tick tock. Who's it gonna be this week? Tune in at 6 PM and find out.
Will the FDIC not let anyone fail again this week because the coffers are dry or did they find enough change in the sofa cushions at HQ to take down a few small banks.
We shall see.
0 bank failures me thinks.
This one is on my list of failures today.
San Joaquin Bank keeps mum through deadline
http://www.bakersfield.com/news/local/x1675932881/San-Joaquin-Bank-keeps-mum-through-deadline
I've got a local one - under Fed Reserve - that is doing the same thing. Not commenting about their deadline that has come and gone without a peep (they had been under notice for over a year prior). Fed says they won't comment; it's up to the bank to issue any remarks.
The answer, it appears, was one bank, #99.
I'll put the over/under at 2, but they'll be smaller institutions--depends on if Sheila could get anyone to buy the banks' trash assets.
I knew Dylan was a man of courage when he was speaking out last fall even on fast money and the closing bell--all of his compadres would snicker at him and try to shut him up but he was just too good to not use his voice--I love him for it and Dylan is another hero on my list!!!!! THANK YOU DYLAN!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Me love him long time! :-D
Ratigan is a moron just busting with anger and spite. He is full of himself. He is a leftist.
Last September he was not pounding the table for the government to stand aside and not provide funding to financial institutions.
Goldman is not the villan here -- they are just doing what investment trading firms do. If the government is foolishly providing the means, it is a government problem, not a Goldman problem. If Goldman is over-influencing the government, it is primarily a government problem, not a Goldman problem.
Oh my goodness.
"Goldman is not the villan here -- they are just doing what investment trading firms do. If the government is foolishly providing the means,"......
Stealing; It's fine because the government is letting them do it. NICE!
#1: I won't hold his leftist commy tendencies against him on this one.
#2: I can't stand GS, but, you are right. We are just jealous (me included) because we don't get free money.
You give free blow jobs to GS?
When We the People start lynching and executing Goldman Sachs partners (March at the latest), then I guess that will be a Goldman Sachs problem.
Doubt it? Have you ever been in a land of social disintegration? The speed with which it happens is astonishing. Everything you thought you knew about your land evaporates in a flash. Think the US is above it? Remember the Sarajevo Olympics? Remember what happened soon thereafter?
It's not that it can happen here; it WILL happen here.
Busting with anger for good reason. If you mean by leftist trying to keep the nation from getting fucked over, sounds good to me. If your cool with corporations buying off politicians and politicians not acting in line with the will of the people and pissing our money away, you can suck it. You have no basic understanding of right from wrong. No reasoning or logic skills whatsoever.
Stealing is not ok just because you can get away with it. I suspect this was a planted post to get a thread going because nobody is this stupid.
BTW, Ratigan left CNBC because he was complaining about this so much.
You are right about one thing, we do have a government problem.
The government has enabled every bad thing you all are ranting Goldman is doing. Stop blaming Goldman for working the system. This is a government problem. This is the government you get with a entitlement, government dependency agenda that is in vogue.
Ratigan is on fire.
Seldom have you seen the squid called out like that on national TV.
I love it.
Really Tiny Bank Failure Friday
Perhaps some microbanks??
A remarkable amount of truth in the MSM, even if he didn't get every detail 100% correct. We need that level of honesty on a dozen networks 24/7...
Ratigan’s got it: The way to solve this is to take the money back.
anybody want to set a line on a green finish for the indices today?
OK Dylan if you read this, think about this, if Obama can get elected even though he hides something in his birth certificate and he use to do coke, then who needs to worry about skeletons in the closet?
That said, could you please get together a group of people across the country, one for every spot coming open in Wa DC in 2010 and start a party to clean up the halls of legislature...it could be the party of the TRUE AMERICANS....and base the platform on single terms for all, no more dirty money from the privately held federal reserve cartel agents, none from health care groups and any other special interests that are too powerful; REVOKE TARP; END THE FED; use anti-trust laws on insurance and financial institutions, and concentrate on the integrity of our country that has been compormised by the crimes committed on all US citizens with the repeated bailouts; go after paulson and bernake for shirking their fiduciary duty to the people of the United States...OK i am wearing myself out here, and i am sure there is much more to add, but that would be a good start-- PLEASE DYLAN---YOU ARE A PATRIOT, PLEASE PUT TOGETHER A NEW PARTY, AND YOU CAN GET PLENTY OF PEOPLE TO HELP YOU!!!!!
As good as that sounds, a third party guarantees a generation of stateists.
I don't think so--republicans, democrats, libertarians, independents all are in turmoil over the way our country has been run and robbed by the legislation of criminality for the bank interests for generations...it is time for all of us to not stay embroiled in the conflicts of the parties because that only distracts from the REAL essential issues of who runs the country....our republic is supposed to be of, by and for the people...and i know you could equate that with stateists but not at all necessarily.
I agree with you ... BUT how does one (many) cobble together a coalition when 33% are liberal and 33% are conservative.
Ross Perot took away enough votes to defeat Bush in 1992, with 33% liberals + soccer moms, etc. Media will play a massively helpful role in promotion of third party to the demise of America.
I think to make real change it will take a Black Swan ... maybe financial Armageddon?
Say the word Dylan. Say it loud.
The word is: CLAWBACKS.
This single word runs counter to the very core of the scam game on Wall Street. The game is to declare massive false profits in the short term and reap massive compensation.
If everyone else loses in the long term, what do you care because (so the belief goes) no one can take your money once it's in your bank account.
Or can they?
CLAWBACKS, people. This single word should terrify the street.
agrotera,
Would you look maaahvelous in a bandolero? We may just have to take matters into our own hands, Dahhhling.
http://archive.liveauctioneers.com/archive4/profiles-in-history/18668/02...
http://www.leninimports.com/raquel_welch_main.jpg
You must have sensed that my head might have exploded if it hadn't been from the laugh you just gave me...thank you so much MsCreant!!!!!!!!!!
And yes, i think we do need to take matters into our own hands, but how awesome to have some folks in front of millions speaking the truth.....now if we can just get one of the networks to devote all 24 hours to exposing the truth!!!!! Maybe Dylan can get his bosses to be the patriotic rebels that all Americans need to be and take on more hours to report and cover, and bring forth a new party to take over Wa DC--I love the name of the group that is calling themselves kickthemallout.com.
Love you MsCreant, and thank you again!!!!!!!!!
Dylan Ratigan --
YOU are a true HERO to so many Americans right now, who see the government and criminal banks extorting us for trillions day after day...
WHERE is the outrage?? WHERE are the street marches???
Dear Anonymous,
We are busy with Dancing with the Stars and NFL Football right now. The few of us who are engaged are busy in the diversion that is healthcare. Half of us are brainwashed by 1 side, and the other half by the other side. By fighting each other the thieves can go about and do their thing.
So please get back to us say February after the Super Bowl when we can concentrate on your so called marches.
Wait! Nevermind. American Idol begins.
Please call us next summer.
LOL +1000
This just in MJ is still dead...
We "sheeple" are now here and hearing the truth. A deep bow of gratitude to all you posters here (and the staff) for indulging and educating us. Keep beating your drums and sooner or later we will all start dancing to da same riddim.
you forgot the millions glued to their screens watching the saga of the balloon boy
I saw nothing about this until this morning. And I still feel I've seen nothing.
While I like Dylan a lot - this seemed very simplistic
Then again, one must understand the audience he is catering to. I guess stuff needs to be dumbed down.
Ratigan was in full favor of the goldman/wall street bailout along with his fast money liar friends. It is all on video, jeez. Now you hail him as a hero?
I've been writing about this here for months. Sombody by the name of Dylan finally got it.
Do I understand correctly?
1. Dylan works for MSNBC.
2. He criticized Geithner.
3. After criticizing Geithner, he still works for MSNBC.
I must have entered a parallel universe.
Do I understand correctly?
1. Dylan works for MSNBC.
2. He criticized Geithner.
3. After criticizing Geithner, he still works for MSNBC.
I must have entered a parallel universe.
Here's your answer. MSNBC, exactly like HuffPo, is where the Obama worhippers gather. They are universal in their detest for the wall street, banking, fed, geithner crowd. They view Geithner as part of the cheat street gang, not in any way at all connected with Obama.
current headline at Huffington Post
http://www.huffingtonpost.com/
Mr. Ratigan failed to thank the US taxpayers for keeping the lights on GE/CNBS/MSNBS, how's that for ecomagination!
GE is bankupt too, see their numbers. . . .
After all this, GS wins...the bitch slap we got via SEC new GS hire had everyone at 85 Broad and Treas office laughing hysterically at the stupid people of America. Game over, they win and we lose...:-(
+1
Currently sharpening pitchfork.
Sincerely,
Stupid American
85 Broad is a dump. Goldman is leaving next month for their new HQ.
200 West
http://www.observer.com/files/full/goldmanHQ.jpg
Suspicious as I am, I wonder what Dylan's bosses feel they are accomplishing by having Dylan call out folks as he has been doing. Are they (GE/MSNBC) simply allowing some steam to vent from the kettle of discontent? Does someone have some juicy puts that need to be brought back into the money with some bad news? You just don't get a free pass to "tell the truth" on network media.
As for outrage, I would have anti-street marches. Call it the Couch Potato revolution. Don't go to work if you're a govt worker (hello sick days!). Don't pay your CC and mortgage bills, max-out-walk-away, vote only for non-incubants or fringe candidates (I'd prefer a cachophany of clashing interests parliament rather than lock-step with death marching the public to the banker gulags of debt). Oh, and if you're already on the edge, go file for bankruptcy too. I don't think the system could take one month of 10% of the population doing that. We may only have 3% of the population with the guts to do it, but it may be enough.
Both left and right are IMO increasingly desperate to "keep the revolution within the walls of the prison". The right enables Beck, the left, Moore and some soon-to-emerge populist. The revolutionaries demean left and right equally, and it scares TPTB.
I agree with you we may still have a chance to accomplish everything we need to using mere civil disobediance.
At the absolute core of all of this fraud is that criminal, rogue cartel who has somehow been able to secure the power to create an infinite amount of money.
An INFINITE amount of frn's. This is not hyperbole. This is a disaster.
None of this would have been possible otherwise.
We are fucking doomed.
What hath FED wrought?
"As it will be in the future, it was at the birth of Man
There are only four things certain since Social Progress began.
That the Dog returns to his Vomit and the Sow returns to her Mire,
And the burnt Fool's bandaged finger goes wabbling back to the Fire;
And that after this is accomplished, and the brave new world begins
When all men are paid for existing and no man must pay for his sins,
As surely as Water will wet us, as surely as Fire will burn,
The Gods of the Copybook Headings with terror and slaughter return!"
http://www.kipling.org.uk/poems_copybook.htm
Ratigan is dead right on one thing: the people to blame are Geithner and Paulson (and Bernanke, Frank, Bush and Obama amongst others)... but his argument is drivel - including purely MADE UP NUMBERS!
When did GS get $30B from the FDIC? they didn't - they got guarantees on debt in a classic example of America's Ponzi financing solutions
When did GS get $11B from the Fed? i don't even know where he got this number from.
does it bother anyone that Ratigan demonstrates the same lack of journalistic integrity that everyone complains about in the mainstream media when he just makes up data like he did? it bothers me...
The greatest trick the devil ever pulled is convincing the people he didn't exist.
Verbal Kent
Ratigan rocks. He's got the passion of a new convert and the connections to piss a lot of people off. I saw his "magic trick" this morning before schlepping off to work. While his teleprompter may have screwed up, Dylan was as articulate and feisty as ever.
I want to have his baby.
Nothing I haven't seen or heard before.
Still waiting for confirmation that the crash last year was an orchestrated dump of stocks by the "promoters" GS and others after years of pumping.
The pumping is going strong, this time with taxpayer's cash. Question is when will the dumping start?
Anyone who knows the business of market makers, promoters and pump & dumpers understands that the same tactic is played by the big boys across all markets.
The lady actually said "legalized theft".. LOL
Wall Street is the mob of the legalized mafia aka Washington DC. Hollywood is the wizard of Oz.
Don't kid yourselves. It's all orchestrated, manipulated and corrupt. That's the real magic. If SEC starts to balk too loud and regulates too much, the players will move elsewhere and what remains is a borish stock exchange. Watching paint dry would be more exciting.
+1000 Were not kidding ourselves...you are correct about the orchestra...he who pays, picks the music!
I will never forget Markopolous testimony and it was all factual, and what happened??? Nada, Zilch...except
adding at baby squid to protect GS at SEC.
Dylan, Please put up this link to make it easier for people to find and email their representatives
http://directory.usayfoundation.org/
then, after the clawbacks we can all thank Goldman for trading on our behalf
While it is a good idea to voice your concern to your elected idiots, I think we should ask our French friends if we could borrow a few of their guillotines for while. I cannot believe that we are letting our government screw us taxpayers in such a way. It is sickening.