Campaign rhetoric is designed to get votes by promoting very popular sounding platforms that conceal special interest agenda. The populist notion of deregulation - “getting government off the backs of the people” has a very different meaning to investment bankers like Goldman Sachs.
A recent article from Reuters:
http://www.msnbc.msn.com/id/43931226/ns/business-us_business/
by Pratima Desai, Clare Baldwin, Susan Thomas and Melanie Burton, (July 31, 2011), describes how Goldman is purchasing and stockpiling aluminum in warehouses in Detroit. Goldman operates the warehouses, owns the aluminum and controls the release of the metal into the world market. The result is a contrived shortage (think Enron in California) leading to real increases in the cost and delivery times of the metal to real users.
This is a clear situation in which regulation is needed but regulators cannot intervene either because the rules have been written to allow Goldman to legally do what they are doing or regulators are impeded by the influence of politicians on behalf of Goldman.
Goldman Sachs has a huge influence in the price of commodities – everything from gasoline to copper – because of their ability to control the front, back and middle of markets. Goldman wins – average people lose. Does your back feel any better because regulations were eased for Goldman.
Elgut Dlareg
No comments:
Post a Comment