More on Goldman Sachs.  It gained notoriety for its speculative practices in the 1920s. In 1928, it launched the Goldman Sachs Trading Corp., a closed-end fund similar to a Ponzi scheme. The fund failed in the stock market crash of 1929, marring the firm’s reputation for years afterwards. Treasury Secretary Timothy Geithner and former Treasury Secretaries Henry Paulson, Robert Rubin, and Larry Summers all came from Goldman, prompting one commentator to call the U.S. Treasury “Goldman Sachs South.”

Goldman’s arrogance comes from more than just access to the money faucets of the banking system. It manipulates markets. Prior to 2008, it was just an investment bank. In 2008 Goldman was transformed into a bank holding company which gave it access to the Federal Reserve’s faucet; but it remained an investment bank, aggressively speculating in the markets. Now it can borrow incredible amounts of money at close to 0% interest use this money to speculate for its own account and bend markets to its will.

Only now are the powers to be finally recognizing that this must be stopped not only by Goldman but other “BIG” banks as well.  The Glass-Steagall Act should be reintroduced into the system and lobbying and campaign contributions should end. No more politics in lending!