Goldman Sachs's Black Magic: Take Two (VIDEO)

Earlier today, on Morning Meeting, Dylan Ratigan attempted to demonstrate the way Goldman Sachs-- rescued from collapse a year ago by taxpayers -- managed to pull off the magic trick of making themselves $3 billion dollars in three months. Unfortunately, in-studio technical problems with uncooperative teleprompters conspired to make the segment unclear. That's okay, though, because Ratigan and Alex Witt returned to the studio this afternoon to reshoot the segment. We are pleased to bring it to you as its authors intended it to be seen.

WATCH:

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As Ratigan offered in an earlier blog post on the segment:

The question is not why did we bail out the banks.

The question is why did we give the banks billions of our money so they could then buy assets by the trillions with our money and they keep the profits?

The answer is Henry Paulson, former Goldman Sachs CEO who ran the US Treasury, and Tim Geithner, current Treasury Secretary who at the time ran the New York Federal Reserve, willingly delivered Goldman Sachs the $70 Billion -- with no strings attached.

PREVIOUSLY, on the HUFFINGTON POST:
Goldman Sachs Black Magic, Here's How They Did It

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Comments

[cesarportugal]

it is really simple to take money from USA people and money from all people in the world, do not forget the connections that this 3 or 4 big companies have in the world. They have the control and power to do it, but they do, all this robbery and frauds with the support of USA govern, so it is Your USA Gov. who permitted that to happen. Or it was the Big Company's who control the USA Gov. ???

I think that USA people and people from Europe must start a BIG REVOLT against this companies and against the rich and bloody suck CEO of Goldman and the others Vampires of OUR Money, You money.

In Europe when we want something to change, the people go to the streets disrupted and scream and sometimes to burn cars and destroyed stores , until the Gov. change the polices.

You must do the same. If you stay in home waiting for someone do the change you will wait until you died.

USA people must "force" with manifs Obama to change. Help Obama to make the change

[williambanzai7]

GOLDMAN STING

http://www.youtube.com/watch?v=OxUW0FM6_Us

[capitaldysfunction]

The banks had to be bailed out or we all go belly up. But the banks are too big to fail. So hundreds of billions are shoveled out to bail out what could have been nationalized, probably, for much less. If they had been nationalized five birds would have been killed with one stone: 1. The banks are owned by the people of the United States, the same people who paid for them. "Too big to fail" is no longer an issue. 2. The redistribution of wealth from Main Street to Wall Street would, at least in this instance, not have taken place. 3. The inability of borrowers to obtain credit, a major stumbling block during the economic recovery, would not be an issue. 4. Excessive executive and employee salaries and bonuses, or the use of taxpayer bailout money to overcompensate those who failed would not be an issue under government ownership. 5. A central cause of Great Depressions and recessions, banking system malpractices, would be removed. 6. Investments by the banks would be the property of the people, not Goldman Sachs.

So why wasn't nationalization used to solve these problems? The major hindrance to economic prosperity for all of us is the dogmas and ideological concerns that clutter the minds of men.

[aussie01]

Exactly!!!!!

[wordherd]

I'm not clear on exactly what assets Goldman Sachs bought with the federal money. He makes it sound like GS bought up all the toxic assets. What assets did they buy?

[Plebean]

They're calling it "distressed assets". From what I understand and this is over simplified, they propped up hedge funds to try and make them solvent.

[ibsteve2u]

They've been buying into energy and carbon offset trading big time...no doubt more Americans will lose their homes as GS manipulates the cost of energy upwards...for massive profits.

[JR Jake]

I have been a huge fan of Dylan's for many years. I used to call him Mr. Capitalism because it appeared to me he epitomized (next to Cramer) what capitalism was all about. I am so happy that he is taking the time and commitment to teach us instead of taunting from behind the microphone and camera. Dylan, love you bro, keep up the good work and good luck in your new endeavours. All my best.

[roger37]

BHO should fire all the Goldman people and put Paul Voelcker in as Sec. of the Treasury. I think BHO screwed up, here.

[BlaineNelson]

Is Goldman Sachs' Amazing 3rd quarter profit of 3.4 Billion legalized theft?

http://www.youpolls.com/details.asp?pid=6306
.

[MMLJ]

CLAWBACK our MONEY!

DEMAND congress Clawback our money or fire all of them.

Vote independent. Get rid of the crooks.

[Truelee]

Ratigan neglected to add another fact about Goldman: Goldman will pay very little money in taxes to the United States because they have shifted their business entity to lower tax countries (offshore).

SCREWED AGAIN US TAX PAYERS!!!

[franklinturner]

Obama never should have continued Bush and Paulson's Wall Street bailout scheme, and he should have fired Geithner, Summers, and anyone else involved in this. Had I done what Paulson did, use my position of power in the government to funnel money into my former company, I would've been fired immediately and prosecuted. The big difference is that Bush and Paulson frightened spineless and self-serving members of Congress into approving their bailout scheme, just like the Iraq debacle. (Bush and his handlers were masters at this.)

TARP funds should have been used to back the investments of the people who would have been adversely affected by their investment firms failing, not to help certain companies, like Goldman Sachs, make huge profits and pay obscene bonuses, at a time when most Americans are having difficulty just making ends meet. Obama's failure to address this situation (with actions, not words) and try to get our money back is not the change I voted for. Sometimes I wonder if it wouldn't have been just as well for McCain and Palin to finish off the country.

[hypnotoad72]

If that's true, now there's clear evidence for a case.

President Obama was elected into a real pile of mush. At some point, people will ultimately stop believing in change and think he's just as much a sellout. Which is a ghastly thought indeed... thankfully there's no proof as of yet, only inference and innuendo. (I mean, why else does nobody do what Michael Moore claims and start revolution? He's told people to, like he can't do anything on his own except pull emotional strings, but that's another story...)

[MMLJ]

First the media brought you "Truthers"

Then they brought you "Birthers"

Now there is a new movement of righteousness... The "CLAWBACKERS!!"

[condor101]

Well, it's nice that they report this on msnbc. At least there a few decent newscasters on the MSM.
Unfortunately nothing will change. Paulson and his henchmen consulted their attorneys and they didn't do anything illegal on paper. Morally wrong? Hell yes! But they can't be charged with a crime.
Anyway, reports like this will continue for another week and then it will blow over. Goldman Sachs has too much power and there will be no congressional investigation.
Wall Street is counting that the sheep on main street will continue shopping and support the economy. Wall Street has declared War on the American People. Need proof? The banks and credit card companies have raised rates and refuse to loan money to small business owners. The average american is under assault by corporate america.
Wake up People!

[xianred]

You're absolutely right about the American people being under assault by our Corporatocracy.

In the wake of the financial crisis (that they created), you'd think they'd be grateful for the billions in taxpayer $$$, humbly and quietly take the money and make an earnest attempt to FIX WHAT THEY BROKE! But no! It's party hats, noise makers and champagne glasses. Warm up the corporate jet - we're off to a company retreat. Keep those mega bonuses coming - and, oh by the way, lets boost those interest rates on their credit cards 10 or 15 points while were at it. Baby needs a new pair of shoes! They are all crim inals and our Congressional representatives are their bought and paid for stooges.

[xianred]

Part 2

I pay off my Capitol One credit card every month in full - am never late - carry no balance. I get notice that my interest rate has jumped from 7.9% to 17.9%! When I call to complain I get a 5 minute "commercial" about all the wonderful advantages I have because I carry their little piece of plastic in my pocket. And because I am such a good customer (charging and paying off over $75,000 in the last three years alone and Cap1 gets a little piece of every one of those transactions) they can offer me their very best rate of interest of 17.9%! Gee Thanks!! They remind me that in these difficult economic times they are forced to make these hard decisions. What difficult economic times? The ones THEY CREATED? First WE, as taxpayers, pay for it through the bailouts and now WE, as their good customers, pay for it in spiked interest rates and fees! It would be CRIM INAL if we had a Congress that actually worked for the people rather than the corporations. And WE are supposed to be real thrilled to learn of the massive profits these banks have made this year - with the accompanying massive bonuses?

Where's my pitchfork?

[condor101]

Don't support Corporate America anymore. Stop buying new stuff. Reduce, Reuse, and Recycle.
Personally, I'm only buying the bare essentials of food and some other necessary things. That's it. I refuse to buy from Big Store Outlets. I drive less; I drive the same car and have no plans to buy a new one for many years. No new clothes, no new electronics, no new nothing.
Corporate America wants to continue assaulting americans, well they will not get my money. And the government is getting less of my tax money too. Since the government gave Wall street hundreds of billions of dollars and nothing to the american people; They can kiss my behind.
Oh yeah, Obama wants to give $250 to the seniors on social security. How sweet of him. That's chump change. $250 only lasts a few days in the U.S. Everything is expensive. Obama and Congress must really think that the American People are stupid. He better get with the program, otherwise he will lose his job in 2012.

[OldTart]

He'll lose his job... And just who do you think is going to lay his career and his life on the line to fight these megalomaniacs? Only the American public can do that, and I don't mean with their vote! The solution is not in any political party or individual because the system is just too big - but not too big for an aroused public to do something about it.

[hypnotoad72]

Early on, he told the public if his policies failed, he wouldn't run again. (was he being naive or deliberate when giving his 'political enemies' free ammo at the time?)

[lastmanstanding99]

Dylan Ratigan is a stud, finally someone who tells the truth.

[treat2day]

I LOVE THIS GUY--blessing that he has the right venue now.

--he was the king of financial news for Wall Street on CNBC Fast Money.
CNBC producers to let him out of his contract early

--he loudly scrutinized Wall Street for stealing taxpayers money AFTER traders decided to wipe out Americans individual wealth first.