Taibbi v Goldman Redux

“Goldman Sachs…is like a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money”

Matt Taibbi, Rolling Stone Magazine

Matt Taibbi is the reporter who has just exploded into the public consciousness with his brutal Goldman Sachs Controls the Universe piece in, of all places, Rolling Stone Magazine.  No other article over the past year that I can think of has generated such a zeitgeist amongst my fellow financial bloggers, not to mention the journalism community at large.

The above “vampire squid” quotation from Taibbi’s story “The Great American Bubble Machine” was like a lit fuse, while his breakdown of how pervasive Goldman’s presence is around the centers of power in this world was the dynamite itself:

As George Bush’s last Treasury secretary, former Goldman CEO Henry Paulson was the architect of the bailout, a suspiciously self-serving plan to funnel trillions of Your Dollars to a handful of his old friends on Wall Street. Robert Rubin, Bill Clinton’s former Treasury secretary, spent 26 years at Goldman before becoming chairman of Citigroup — which in turn got a $300 billion taxpayer bailout from Paulson. There’s John Thain, the a**hole chief of Merrill Lynch who bought an $87,000 area rug for his office as his company was imploding; a former Goldman banker, Thain enjoyed a multibillion-dollar handout from Paulson, who used billions in taxpayer funds to help Bank of America rescue Thain’s sorry company. And Robert Steel, the former Goldmanite head of Wachovia, scored himself and his fellow executives $225 million in golden-parachute payments as his bank was self-destructing. There’s Joshua Bolten, Bush’s chief of staff during the bailout, and Mark Patterson, the current Treasury chief of staff, who was a Goldman lobbyist just a year ago, and Ed Liddy, the former Goldman director whom Paulson put in charge of bailed-out insurance giant AIG, which forked over $13 billion to Goldman after Liddy came on board.

His conclusion is that Goldman sets itself up to benefit from self-created booms and then profiteer from the inevitable busts. 

In Goldman’s defense, a lot of this stuff is just conspiratorial connect-the-dots.  In Taibbi’s defense, Goldman’s public response has been incredibly subdued and feeble, what Taibbi calls a “non-denial denial”.

Anyway, here’s the original article:

The Great American Bubble Machine (Rolling Stone)

And here’s a recent exclusive interview of Taibbi on Wall Street Cheat Sheet wherein he discusses the Goldman reaction as well as his writing career.

Tags: , , , , , , , ,

This content, which contains security-related opinions and/or information, is provided for informational purposes only and should not be relied upon in any manner as professional advice, or an endorsement of any practices, products or services. There can be no guarantees or assurances that the views expressed here will be applicable for any particular facts or circumstances, and should not be relied upon in any manner. You should consult your own advisers as to legal, business, tax, and other related matters concerning any investment.

The commentary in this “post” (including any related blog, podcasts, videos, and social media) reflects the personal opinions, viewpoints, and analyses of the Ritholtz Wealth Management employees providing such comments, and should not be regarded the views of Ritholtz Wealth Management LLC. or its respective affiliates or as a description of advisory services provided by Ritholtz Wealth Management or performance returns of any Ritholtz Wealth Management Investments client.

References to any securities or digital assets, or performance data, are for illustrative purposes only and do not constitute an investment recommendation or offer to provide investment advisory services. Charts and graphs provided within are for informational purposes solely and should not be relied upon when making any investment decision. Past performance is not indicative of future results. The content speaks only as of the date indicated. Any projections, estimates, forecasts, targets, prospects, and/or opinions expressed in these materials are subject to change without notice and may differ or be contrary to opinions expressed by others.

Wealthcast Media, an affiliate of Ritholtz Wealth Management, receives payment from various entities for advertisements in affiliated podcasts, blogs and emails. Inclusion of such advertisements does not constitute or imply endorsement, sponsorship or recommendation thereof, or any affiliation therewith, by the Content Creator or by Ritholtz Wealth Management or any of its employees. Investments in securities involve the risk of loss. For additional advertisement disclaimers see here: https://www.ritholtzwealth.com/advertising-disclaimers

Please see disclosures here.

What's been said:

Discussions found on the web
  1. pokerqq commented on Dec 29

    … [Trackback]

    […] Info to that Topic: thereformedbroker.com/2009/07/08/taibbi-v-goldman-redux/ […]

  2. Makita MAC700 manuals commented on Jan 22

    … [Trackback]

    […] Information on that Topic: thereformedbroker.com/2009/07/08/taibbi-v-goldman-redux/ […]

  3. CI CD Company commented on Feb 07

    … [Trackback]

    […] Here you can find 88268 additional Information to that Topic: thereformedbroker.com/2009/07/08/taibbi-v-goldman-redux/ […]