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Dylan Ratigan

Dylan Ratigan

Posted: October 16, 2009 03:04 PM

Goldman Sachs' Black Magic, Here's How They Did It

What's Your Reaction:

How did Goldman, Sachs & Co. -- saved a year ago by the US taxpayer -- magically make $3 billion in 3 months a year later?

This as the US dollar collapses, unemployment soars and foreclosures hit a record?

Here is the Goldman, Sachs & Co. revenue break down for the past 3 months:

  • Financial Advisory-M/A: 325 million.
  • Equity Underwriting: 363 million.
  • Debt Underwriting: 211 million.
  • Trading-Principal Investments: 10 billion.

Notice that 10 billion is much bigger than two or three hundred million made from the traditional Wall Street businesses.

That $10 billion is evidence of their magic trick. For we the taxpayer gave Goldman Sachs the following:

  1. 10 Billion in TARP
  2. 11 Billion from the Fed
  3. 30 Billion from the FDIC
  4. 13 Billion from AIG

For a grand total of almost $70 Billion (Goldman along with every other bank and AIG would have been defunct without this money).

Goldman at the apex of the crisis is delivered this money -- which they then use to borrow against at $20 or $30 for every $1. Which at 30x equals $2.1 trillion in available capital.

As one of the only banks in the world with money at the time, Goldman Sachs was able to buy billions in distressed assets around the world at record low prices -- only to watch $23.7 trillion in US taxpayer money be deployed during the past year to re-inflate the asset's values that Goldman had purchased with our tax money.

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.

So what can we do?

  1. We must demand the return of those investment gains made with America's money - it was stolen from us and we can get it back. Demand Claw Backs - and not from the future but from the past - That is where our money is.
  2. We must have an exchange for all credit derivatives -- the current version is riddled with loopholes that let banks avoid transparency by mobbing offshore and prohibiting government regulators from being able to force the use of the exchange by the banks.

So how do you do it?

Heed the Call!!!! Click Here: www.dylan.msnbc.com

 

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02:29 PM on 10/19/2009
What is honestly preventing over 300,000 people from storming lower Manhattan and outright destroying it?!?
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givesflack
shrink GOP small enough to drown in bathtub
10:54 AM on 10/19/2009
It was a win/win to the power of 5 for the banks and those in government who handed them a windfall financial transfer from the treasury to banks in front of our faces! It's not about business it's about profits. Any legislation over the past 30 years was created to amass more profit and is completely anti business in nature. How does a investment firm go and by up companies, increase costs, decrease wages all the while pocketing all the profits and then sell it while shorting it at the same time while a century old company dies- that's not business that's profit! Wall Street has been killing off our economy, business, jobs, income in it's money lust to suck every last dime into their coffers as they can and are even more powerful to do so with the treasonous bailouts. We are suffering while the meaningless stock exchange is on another nation killing splurge past 10,000, and will get the rest of the treasuries money when the next and soon bubble burst. Greenspan/Paulson/Bernake are all rubbing their nuts together in glee since it only makes them and their selfish kind earn money they don't deserve.
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givesflack
shrink GOP small enough to drown in bathtub
11:28 AM on 10/19/2009
Demand a return of all bailout money and loans with a 24% applied to them to show what it's like to pay high interest. NOW
We should break up the "too big to fail" (lower case intentional)
Nationalize the banking industry to create real business investment.
Consumer Protection Agency with full protection
Take over telecommunications- where do they get the nerve to charge those prices?
Stronger Anti trust Bills to break up cartels
No Net Neutrality
Public Exchange for all stocks or, just get rid of Wall Street- it's only for the top 10% anyway- let them play with themselves.
Raise minimum wage lower pay at top extremely.
ITS OUR MONEY TOO- should be our slogan forever.
Income Equality Rights- A bill that makes wealth a sharable and fairer commodity so we all share in the benefits of society that we helped create instead of working to make other extremely wealthy while we get nothing.
Bring investigations to the open and bring all who created financial crisis to justice, name names and companies. Prosecute without leniency.
Undo all of Reagan Clinton and Bushes policies over the last 30 years to neutralize the underhanded work Greenspan, Paulson, Gramm, Gingrich, Summers, Rubin, etal...
Bring back all of FDR's policies and if you want to change them again, you can only do so if you strengthen them.
By the way, if Wall Street can receive welfare and claim bankruptcy without impunity why can we?
WE DESERVE BETTER AND WE DESERVE MORE
09:52 PM on 10/18/2009
Why the hate in reference to capitalism? It was the damn GOVERNMENT that bailed these people out and OUR money that they used... If the GOVERNMENT let some of these banks FAIL like they should have, the crap may have hit the fan, but we wouldn't be the fools who gave them our money to reap billions... Capitalism isn't perfect, but in this case, the govt should have let the banks compete, fail, and start anew... that would've begot change...

Obama and Congress have failed us... the banks took money that was given to them and made more... it's what they do...
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HUFFPOST SUPER USER
petef59
edit my micro-bio
10:39 PM on 10/18/2009
Obama failes us? Sorry, GW Bush's Treasury appointee (former GOLDMAN exec Hank Paulson, handed the banks all the taxpayer money. Bush and his administration were not 'government', just private interests that took over government in the name of no regulation business.


"...the banks took money that was given to them and made more... it's waht they do..."
Sure-without any return to the shareholders (taxpayers) that gave them the capital.
This user has chosen to opt out of the Badges program
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11:26 PM on 10/18/2009
I love your tunnel vision. You are right about one thing, it is the governments fault. Over the last 30 years the have deregulated everything, taking away all the laws put into place after the 30's. Most of this deregulation took place and was encouraged by Republicans. Capitalism on steroids is not capitalism at all. It's robbery.They used their investments like a Vegas gambling establishment. It used to be bankers were some of the most conservative people on earth. Then they all caught gambling fever. Ever pushing the line of greed. It's not just the banks, the entire corporate set up is out of control. All the jobs off shored, nothing manufactured here, no pay for the
peons. All the peons need to do is consume to support this money making economy. Out of their non wages they can pay higher housing costs, Higher medical insurance costs(if they are lucky), pay into retirement funds and earn 1/2% interest on any savings they may be able to scrounge up and if they are lucky they can afford some groceries. People making $10-$20 per hour are expected to support the whole house of cards so the greedy can get richer. Those earning less or nothing have no taxes to pay and the wealthy are one giant loophole leaving the poor snooks in the middle trying to hold it all together.
Oh , I remember the wealthy were going to create jobs with all those tax breaks. GET REAL!!!
09:30 PM on 10/18/2009
Mr. Ratigan:

Please continue to inform American citizens about the systemic looting that is occuring by the federal reserve/treasury/wall street banking complex. People need to understand what is happening to the US Dollar, how debt on all levels is destroying us, and how adding further debt and creating false money by the Fed is destroying our economic foundation.

Thank you for advancing the cause.
08:55 PM on 10/18/2009
The banks and Wall Street stabbed us in the back, and Paulson sold out our country.
08:32 PM on 10/18/2009
Geithner is part of the Wall Street cartel.

Nothing is being done to get the money back. No charges have been filed. Nothing.

This is Congress's fault. The whole place needs to be cleaned out. Except for a handful of representatives/senators, the whole place needs to have its clock cleaned.
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08:27 PM on 10/18/2009
Capitalism in full flight. Quite brilliant, I'd say -- if you happen to be a GS shareholder.
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Yellowstonedemocrat
lives in Yellowstone
09:09 PM on 10/18/2009
These huge financial people are criminals and they all should be forced to pay mightily, both civilly and criminally.

Unfortunately my cynicism says that not only will they NOT pay us back or go to jail but also that they will continue to work in that business that rips us all off. Go see Michael Moore's movie "Capitalism" and I guarantee that it will give you a lot to think about, even if you are a Republican.

But too many politicians are in bed with Wall Street. And too many ordinary Americans think that they should support these criminals who have screwed them (yeah, right!), that someday some of that big money will trickle down to them (yeah, right!), and that someday if they say nothing, they might get rich too (yeah, right!). And so they continue to vote against their financial interests by voting Republican.

The huge banks have us all by the balls, and there is nothing we can do about it. And the lying propaganda from the right-wing that supports these huge banks has been skillful and complete.
08:21 PM on 10/18/2009
There's no black magic. They are mafia. Case closed.
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HUFFPOST SUPER USER
tbone99
cruisin' duality
06:08 PM on 10/18/2009
Debtors interest rates are raised when they have poor credit histories. The American taxpayer should be getting a 27% return on their loans to these poorly managed, unstable financial institutions. that truck in shady assets. You know in a minute they would not hesitate to charge us the maximum.
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07:50 PM on 10/18/2009
Best idea I have heard in awhile.
Bernique
Solar is clean, cheap and plentiful
05:42 PM on 10/18/2009
"Claw Back" has such a nice ring to it. Especially when applied to Goldman Sachs. And it fits the situation perfectly! I will use the term with abandon when calling Congress and the White House.
05:42 PM on 10/18/2009
Good luck with that
HUFFPOST SUPER USER
mk20051
05:19 PM on 10/18/2009
Thank you Dylan!! When I saw the Black Magic video, I applauded! I didn't watch CNBC that much, but I am so glad you are on MSNBC now. You turn on the lights in the room and all of the crooked wall street roaches go running!!
Bernique
Solar is clean, cheap and plentiful
08:36 PM on 10/18/2009
Dylan joins the ranks of Keith, Rachel and Big Ed Schultz in telling it like it is. Will MSNBC rid itself of Scarboro, Mathews, Buchanan, Medved, and keep moving in the "right" (as in correct) direction?

I dream of new line--ups that would include Thom Hartmann and Amy Goodman.
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11:31 PM on 10/18/2009
sign me up for those shows. Love Thom Hartman, so well researched and informed it is a treat to hear him.
03:59 PM on 10/18/2009
Who voted for TARP without any strings on the money? Who voted quickly and were uninformed? Who voted for fixing the CRISIS with a stimulus bill they did not read? Who will vote for more power for the Treasury without being informed? Who continues to say Illegal immigrants will not be covered on a public option even though Constitutionally they cannot be denied? Who wants TARP re-payments diverted to community reinvestment? Who wants to tax all producers to pay for the looters and moochers? ANSWER..............................................................CONGRESS
05:37 PM on 10/18/2009
Actually, Henry Paulson (that cr*ok) initially asked for carte blanche with the TARP and Congress refused.

They made him promise to use $350 Billion to buy up the toxic mortgages that were jeopardizing banks.

Paulson. Lied.

The irony of giving $350 Billion to banks at terms disadvantageous to taxpayers has been lost by the media. As has the double irony that Paulson says he did it "to free up the credit market" and yet, after we gave them hundreds of billions of dollars (and Paulson forced small solvent banks out of business to help keep the bloated failing ones afloat).....

...the banks STILL wouldn't lend us their (i.e. OUR) money!!! Or, in Paulson-speak, "The credit markets stayed frozen."

There are no words to describe how I feel about Paulson and Bernanke. Both should be in prison and the Fed should be audited.

(Get Geithner's resignation, too, --and put Warren as Treasury Secretary).
07:20 PM on 10/18/2009
My guess is many of those who do not know for instance the video with Peter
Schiff a lot of other financial experts in 06 / 07, what the majority opinion was before
the crash, the media hype to that, would have use for that flashback, to get a grip on
how the media and the pundits played it along:
http://www.youtube.com/watch?v=2I0QN-FYkpw

There a lots of videos on You Tube that show what was later to the various searchwords,
names and issues.
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07:53 PM on 10/18/2009
After the FED is audited they should close it down entirely!
02:34 PM on 10/18/2009
Way to go Washington.

Billions for the too big to fail thieves on wall street who caused this mess with senseless gambling and bend over backwards for the for profit muderers who take money from everyone and deny them the care they paid for.

Nothing for the people. We don't have armies of lobbyists to bribe you and your overpaid aides all we can do is work to pay the bills you make.

Who said there is no slavery in America.


While debating wether the american people should have health care the theives on the hill are granting their corporate masters even more power to cheat, defraud and steal from the middle class.

We should all be writting and calling our representatives and senators to demand they stop robbing us blind.

When are we going to say america is too big to fail and act to save it?
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BartRoberts
Vita canis, tum mors.
06:02 PM on 10/18/2009
"We should all be writting and calling our representatives and senators to demand they stop robbing us blind."

You're too tame. I would suggest that it's time to ready our pitch forks and torches.

In the direction we're now heading, it WILL come to that.
02:10 PM on 10/18/2009
"they" will NEVER yield to anything

unless they HAVE TO.