One more example of the greedy manipulation of Goldman Sachs

To me this shows in a simple way exactly how our greedy manipulative bankers will always get what they want and why we will always be screwed. The Fed is supposed to be reviewing but...really? I am paraphrasing so go to the business insider for the short story. A Bizarre Goldman Sachs Aluminum Moving Scheme Has Allegedly Cost US Consumers $5 Billion In The Past 3 Years Read more: www.businessinsider.com...

Goldman Sachs bought an aluminum storage company several years ago (post 2003) where it charges customers to store aluminum. Nothing wrong with that. They are required to move 3000 tons of the aluminum daily and not sit on it. And this they do, sort of.

Here is the rub. If there is a backup in storage space, they can and do charge more for storage. So Goldman's is moving 3000 tons daily to another of their warehouses and charging more for storage because of the backlog. It is estimated 90% of what they are moving goes to their own warehouse and some warehouses stay empty as much as 12 hrs daily. It is also estimated that this little game has cost consumers 5 billion in the last 3 years.

They are governed by the London Metal's exchange who get's 1% of the profits amounting to millions yearly so why would they stop this little scam? Integrity be damned...it's about the money.

But why stop with aluminum?

JP Morgan, Blackrock and Goldman have all been given approval by the SEC to buy a large amount of copper available on the market and stockpile it, Kocieniewski reports. Read more: www.businessinsider.com...

business insider

reply to post by liveandlearn


aaahhhh!
Ye Olde Shell Game...

when ieyasu tokugawa took over as shogun, he assigned merchants to the lowest class of society

because:producers produced/created
artisans produced/modified/improved

merchants? they just shuffled things around...

Well... isn't GS the big Dog on the Porch among financial giants...

they are supposed to set the tone for all their followers... so the 'rules' get stretched and twisted to the advantage of GS


here is an excerpt which tells of of the Super entity network of 147 big name, global, corportions who control and direct some 40^ of al the total Global Wealth (& approximately that percentage of national governments..


from my research cache:

Flash ahead to 2013, and readers of my previous commentary were presented with the earth-shattering findings of a trio of Swiss researchers


In detail, nearly 4/10 of the control over the economic value of [all transnational corporations] in the world is held, via a complicated web of ownership relations, by a group of 147 [transnational corporations] in the core, which has almost full control over itself. The top holders within the core can thus be thought of as an economic “super-entity” in the global network of corporations. A relevant additional fact at this point is that ¾ of the core are financial intermediaries. [emphasis mine]

In 1980, it was intolerable for one entity to have even a 20% share of one, small market. In 2013, the same cabal of (Western) governments has allowed a “super-entity” to acquire double that share – not of a single (small) market, or a whole sector, or even an entire economy. Rather, this is a single “super-entity” with 40% control of everything.

Of course when these researchers coined their term “super-entity”, they had no need of inventing new terminology. The word they were searching for was “monopoly”: a single monopoly with 40% control over the entire global economy.
...

bullionbullscanada.com...

When the Federal Reserve gave JPMorgan (JPM) Chase & Co. approval in 2005 for hands-on involvement in commodity markets, it prohibited the bank from expanding into the storage business because of the risk.

Five years later, JPMorgan bought one of the world’s biggest metal warehouse companies.

While the Fed has never explained why it let that happen, the central bank announced July 19 that it’s reviewing a 2003 precedent that let deposit-taking banks trade physical commodities.

So storage was explicitly prohibited but the Fed looked the other way

bloomberg

Apparently there was a banking and finance committee hearing on this yesterday. For anyone interested some excerpts below.

Goldman Sachs own the warehouses that they bought from Metro International in 2010. In that time the amount of aluminum stored has gone from 50,000 tons to 1.5 million tons, and normal time for shipment has increased from 6 weeks to around 16 months.

... Aluminum users like MillerCoors are being forced to wait in some cases over 18 months to take physical delivery due to the LME warehouse practices or pay the high physical premium to get aluminum today. This does not happen with any of the other commodities we purchase, “said

This “grand experiment has gone far better for the banks than it has for the consumers,” Joshua Rosner, managing director of Graham Fisher and Co., said. “Electricity users appear to pay more because of Wall Street involvement, aluminum for airplanes and soda cans costs more, and some say gasoline at the pump costs more -- without any measurable benefit to anyone but the banks.”

In defense of Goldman a banking lawyer claims, in part

... that allowing financial holding companies to control commodities, such as aluminum, oil and electricity, is in fact better for the consumer, because they “increase customer choice, increase competition, act as more effective intermediaries between producers and end-users, provide increased liquidity to the markets and lower prices to consumers.”

ibtimes

I almost hate to read the news anymore. Crap piled on crap and feeling totally helpless and used. At least you can get rid of a spouse/partner... how do you walk out on something that touches everything in your life. I am beginning to hate the system, all systems.

Sorry for the mini rant.

reply to post by liveandlearn


Imagine that. A banksters lawyer defending the banksters.
The track record of the big wall street banks is utterly criminal, unethical and irresponsible.
Anything that comes out of thier mouths is already suspect and filled with lies and deception based on thier very history.

When are we gonna guillotine these barstids?
Such a gutless world we live in....theres NO choice people either resist or start kissing Obamass

When I hear them storing metal I think one thing. War. Metal is needed to build weapons, and ships and palnes...ect. So maybe they know something we dont. They are most likely selling that metal to foreign countrys, or preapairing for another world war in the future.