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The Real Superpredators

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The Real SuperpredatorsThursday, April 14, 2016
Recently, the Department of Justice announced that Goldman Sachs “agreed to Pay More than $5 Billion in Connection with Its Sale of Residential Mortgage Backed Securities.” Close scrutiny reveals that Goldman will actually pay, for a number of reasons, $0.

Goldman’s Track Record:

We note that:

On April 28, 2003, Goldman Sachs was found to have aided and abetted efforts to defraud investors.

On September 4, 2003, Goldman Sachs admitted that it had misused material, nonpublic information that the US Treasury would suspend issuance of the 30-year bond.

On April 28, 2003, Goldman Sachs was found to have "issued research reports that were not based on principles of fair dealing and good faith .. contained exaggerated or unwarranted claims.. and/or contained opinions for which there were no reasonable bases ". .

On January 25, 2005, "the Securities and Exchange Commission announced settled civil injunctive actions agains…

Unemployment at 7.9%. We'll stand by our number..

According to the Washington Post,

"Businesses picked up their pace of hiring in October and the unemployment rate rose as more people started looking for work, according to new government data that offer a glimmer of optimism for the long-ailing job market on the eve of the presidential election.

Employers reported adding 171,000 jobs in October, beating both analysts’ expectations (125,000 jobs added) and September’s job creation (a revised 148,000). The unemployment rate rose to 7.9 percent, up from 7.8 percent, but the reason behind the uptick also points to an improved job market. Some 578,000 more Americans counted themselves as part of the labor force, and only 410,000 more people reported having a job. In one particularly welcome sign, the proportion of the population reporting that they had a job rose one-tenth of a percent to 58.8 percent."

We forecast a 7.7% rate. We'll stand by our number. As is often the case, the Fully Adjusted Return (TM) methodology is ear…

Adam Smith on the Current Financial Crisis

While there is much wrong with Mr. Smith's work, he did, in The Wealth of Nations, note the following:
"To promote the little interest of one little order of men in one country, it hurts the interest of all other orders of men in that country, and of all men in all other countries."
The result of policies favoring "one little order of men (Wall Street, in the current crisis)" gives rise to what Smith calls "a high rate of profit."
"But besides all the bad effects to the country in general, which have already been mentioned as necessarily resulting from a high rate of profit; there is one more fatal, perhaps, than all of these put together, but which, if we may judge from experience, is inseparably connected with it. The high rate of profit seems everywhere to destroy that parsimony which in other circumstances is natural to the character of the merchant. When profits are high, that sober virtue seems superfluous, and expensive luxury to suit better…