Business as Usual at Greedy Banks

We are still feeling the aftermath of the collapse of Lehman Brothers on September 15, 2008.  That day the financial world froze and we all looked in panic down at the abyss.  Armageddon had emerged and there was no way of knowing what would happen in a system which had been shattered into a million pieces by hubris and unlimited greed.

Hank Paulson had the bright idea that he should pass the hat to the Federal Government to solve the crisis and requested a bailout of $700 billion.  After a heated debate, Congress in an act of desperation relented and approved the gargantuan financial deal that would pull us out from the brink of financial chaos.

Five years later, the banks have once more returned to their esoteric formulas designed by obscure people called “quants” allowing the Masters of the Universe to generate enormous mountains of profits.  The “Good Old Days” are back again and money is flowing in like the ferocious waters of the Orinoco River.

Credit: Daily

“Five years after the financial crisis, Wall Street banks are recovering splendidly. Record profits are becoming routine, and earnings are way, way up. Today, we learned that Goldman Sachs made $1.93 billion last quarter, or double what it made in the same quarter last year. Last week, we learned that JPMorgan Chase made $6.5 billion in the second quarter, or more than $72 million per day. And on Thursday, we’re expected to learn that Morgan Stanley—the last of Wall Street’s Big Three—made something like $900 million in the quarter.”Kevin Roose, New York Magazine

After reading this chilling news about the astronomical profits of the banks “Too Big to Fail”, the following words come to my mind:  “Every time history repeats itself, the price of the lesson goes up.”—Anonymous.  Good Day.

3 thoughts on “Business as Usual at Greedy Banks”

  1. Hi Omar,
    Please read this fantastic article written by David Kocieniewski from the New York Times regarding Goldman Sachs owning an aluminum warehouse in the Detroit area. It is insane what we put up with from these financial crooks. The article is called “A Bizarre Goldman Sachs Aluminum Moving Scheme Has Allegedly Cost US Consumers $5 Billion In The Past 3 Years”.

    Read more:

    I just thought it was interesting in light of your post today and the one from the other day regarding Detroit’s bankrupcy.

    I wish we could break this greed cycle.

  2. Howdy Dee:

    I take heed with your wishes to crush the greed cycle. I wish I had a magic wand to do it, but I guess that’s wishful thinking. In my opinion, greed in ingrained in the human nature. I’m a history fan, and I’ve read about wealth, power, and greed for a very long time. Sorry if I sound too pessimistic, but that’s the way I see it.

    It’s distressful to see how corruption and greed has permeated our political system in my country. The sad part is that it isn’t getting any better with the younger generation.

    Remember the 1987 film, “Wall Street” in which the character Gordon Gekko (Michael Douglas) addressed the crowd and said, “Greed is good”? Absolutely absurd!

    I’ll read the suggested article shortly. Thank you. I appreciate your thoughtful comments.



    Edition: Read the article. It’s mind boggling. Imagine products manufactured with aluminum, (e.g., cans of sodas, beer or juice, airplanes, electronics, cars, house sidings and so on and so forth.)

    The description of “a merry-go-round of metal” is very appropriate. The scheme of transferring aluminum from one warehouse to another to make a buck is almost surreal. What they are doing is manipulating the waiting time at the warehouses to increase the price of the commodity.

    Imagine was is happening in other commodities such as wheat, oil, cotton, coffee? And the list keeps growing while our pockets feel the pinch. Grrrr!

  3. Omar,
    You are exactly right. It is being done with so many of our commodities and precious resources that really shouldn’t belong to them.

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