The Bankruptcy of Casino Capitalism

by kerschnerl on May 5, 2010

The Goldman Sachs scandal offers an opportunity to focus on our critique to the capitalist system itself.  April 28, 2010

EVEN THE guy who made a name for himself defending the British Empire can’t stomach Goldman Sachs’ style of capitalism.

“Whether or not there is any basis for the [Securities and Exchange Commission’s] claim that [Goldman] misled investors, the key point is that the synthetic collateralized debt obligation (CDO) at issue was nothing more than an elaborate wager on the future price of some mortgage-backed securities–a wager with as much economic utility as a gigantic bet on a roulette wheel or a horse race,” wrote investor Ted Forstmann and economic historian Niall Ferguson, the pro-colonial author of Empire: The Rise and Demise of the British World Order.

They concluded: “Facilitating such bets has become a huge part of the business of the world’s biggest banks.”

And the bets keep coming. Will the Greek government default on its debt? Speculators are wagering that it will–and stand to profit if a default comes.


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