Vampire Squid At Work

This piece says it all – How Wall Street’s Rent-Seeking Vampire Squid Sucks All Life Out Of The Economy. This is typical of these thugs. This has got to stop, too big to fail must mean too big to exist.

Goldman bought Metro, a storage company in Detroit that handles a quarter of the market’s supply of aluminum. Before the Squid took control, Metro had 50,000 tons of aluminum in storage; under Goldman’s management that has increased to 1.5 million tons.

Based on that growth you might think the aluminum business is booming, right? Well, no. Producers who need aluminum cannot get it—it is all bottled up in Goldman’s warehouses. The typical wait to get an order filled by Goldman’s facilities has grown from six weeks to 16 months.

And here’s the kicker. Goldman doesn’t own an ounce of the aluminum—it merely stores it for the owners. When the owners demand their own aluminum, Goldman claims it cannot be found. This is like depositing your family jewels at the local bank, but when you go to retrieve them, the bank claims it has misplaced your safety deposit box. And so you wait for 16 months.

But it gets better than that, of course. The Squid charges the aluminum owners for the entire 16 months it takes to locate the metal bars—which are actually pretty hard to misplace since each weighs 1500 pounds and they are all stacked in nice neat rows.

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