Ut oh....did Heidi CRuz write this ‘theory’ for GS?
I bet this will be used by Sanders for his campaign.
Perhaps we need an aristocratic system in which certain important people just own stuff and live in big houses while the peasants labor in the fields and the lords take what they want? Such a system may be more efficacious -— if you are a lord.
It’s easy enough to understand. Because the American systme is losing it’s capitalistic and meritorious base, those in the position of influence are moving in the direction of oligarchy.
Evidently this was written before the current market crash, since he talks about growth in the S&P. The correction the bears predict may be what we are seeing now. Capitalism is the worst system of finance known to man, except for all the others. You can smooth out the busts at the price of choking the booms, but no tree grows to the sky.
I’ll translate it for you: We need a one world government and a one world religion with a strong man and his prophet running things to save the world.
If they tell you to join the world religion, and take the mark on your forehead or right hand so you can buy and sell, DO NOT DO IT!
They will cut your head off, but it is better to loose you head and gain eternity with YHWH, then to keep you head as spend eternity in the Eternal Lake of fire.
When you combine this with artificial inflation of the money supply, without a corresponding increase in productivity, *and* you curtail lending, so the velocity of money slows to a crawl...
and you just came off of a real estate bust, so the money can't go there...
then the money will needlessly inflate stock prices.
It’s operating on money made up out of thin air.
Derivative exosure at the big banks add up to more money than there has ever been or ever will be.
They have sliced and diced and sold and resold the same bad debt hundreds of times over.
Sooner or later someone’s going to be paying.
This is how you would expect corporate capital structures to evolve in a prolonged low-interest-rate environment. You will goose ROI through a leveraged capital structure...until interest rates rise, of course. Then you’re screwed.
You could imitate this effect in your own portfolio by borrowing broker call money at 2% and buying stocks that paid a 4-5% dividend. It would work great, so long as nothing changed. They call this “picking up pennies in front of steamroller”.
I bet they’re saying the government controls the markets, without saying it.
The welfare state is so heavily indebted it is the predominant factor in both demand and supply.
Will read tomorrow and see how close I came.
Don’t worry. The author of the report doesn’t even understand what he wrote.
Shock? No, not really. The rotting corpse that still echos the name Goldman Sachs needs to be put out of it's misery like any other zombie. Its kind of like when your fingers or toes turn black from frost bite. You may not want to admit it to yourself but it is time to let them go.
Too Big Too Fails must turn on each other after they kill off all of the small prey. The next financial crash just commenced. The Goldman squid seems to fear its upcoming cage match to the death with the JP Morgan whale.
They may be right, but only because what Wall Street and D.C. Have been doing isn’t actually capitalism.
It was called an honor system, you just simply trusted good folks to do the right thing.
'America is great because she is good. If America ceases to be good, America will cease to be great.'
Same thing with free market capitalism, it's great, works fine...until some greedy pieces of sh t decide they want it all for themselves, there are also those who hated free market capitalism to begin with(like Soros), but saw a way to exploit it's freedoms to enrich themselves while destroying a free market society.
"The only thing necessary for the triumph of evil is for good men to do nothing"
We put too much faith in politicians/court system to stop the vipers...when so many are handpicked BY the vipers to protect their interests, and their interests only.
For the love of money is a root of all sorts of evil, and some by longing for it have wandered away from the faith and pierced themselves with many griefs.
Yep...."a Republic...if you can keep it"....what he said.
With every ebb and flow of the markets, they buy up more and more assets. So they can now afford to go commie on us. Look at all the merging, growth and expansion of corporations in order to be competitive on the world market.
Eventually it seems like there's no place to go unless they size down and let people go. Then start all over again when there's an uptick in demand.
I suppose inflation can kill family businesses. In order to keep up from generation to generation, they have to open more stores. But we went for at least one whole generation and sometimes 2 or 3 where it worked for a family, through upturns and downturns in the economy. If they managed their money carefully, they could stay in business. The hours were long, and the work was hard. And there was greed sometimes in a captive, vulnerable market, like "company stores".
I see the biblical model as capitalism, very labor intensive, but not socialism. The people were supposed to tithe to the priests who were supposed to help the poor. If they weren't corrupt, it worked for centuries. Even the health care, such as it was, was for profit.
That's my take. If Goldman Sachs wants to tell us the capitalism model is flawed, they are up to something. It is flawed when it becomes corrupt. I don't believe in laissez-faire capitalism either, due to greed. There need to be some minimal controls. And integrity which we don't have much of any more.
Why do people want to live in the US and not Cuba or the Middle East? Still? It's certainly not because of socialism. Capitalism has brought us the highest standard of living for the most people in the history of the world. The poor can eat better than kings. There's just no comparison, flawed though it may be. Look at all the advances we have made due to incentives and inventions, most of which were done by white males in the US and western society. The new agenda, fueled by class envy and greed, has demonized those men.
But in the end, if they do not succumb to sinful ways, they will prevail. We're kind of reaching the point of no return by playing God though, trying to control everything.
Get the gov’t out of it for the most part and get back to free market capitalism. Get rid of the FED mandating interest rates and the DOL mandating wages and benefits. That’s a start.
And cruz’s wife is one of these G-S globalist folks.
Goldman Sachs is hardly in a “capitalist” business.
They are the biggest and most well-connected beneficiary of our soviet-style monetary planning authority, the Federal Reserve. They nominate many Treasury secretaries and give money to all politicians besides. Capitalism? That’s too risky. Its better to be connected to those printing the money and making the rules.
