Wall Street's Next Big Short: China?


Robert Green at Forbes has an interesting column today (titled "It's Getting Harder to Defend Goldman Sachs") in which he proposes an answer to a question I get asked a lot: Where's the next scam? Green thinks it might be in the Far East:

What’s the next Goldman lemon trade? I’m guessing it may be brewing with China. Ex-CEO Hank Paulson opened many deals in China, moving many American businesses and jobs to China. Goldman pumped up China for great profit, without any regard for doing business with the CCP communists and corrupt parties. Goldman may be arranging its big-China short now to get “closer to home.” If and when the China’s financial-market bubble bursts, Goldman may make another fortune on the sell-off.

A lot of people aren't aware of the role Wall Street investment banks had in moving American jobs overseas. Most of the major bailout recipients, in fact, helped finance the wholesale export of the American manufacturing sector by lending money to the Chinese to build the sophisticated industrial infrastructure it needed to take full advantage of its inexhaustible supply of cheap pseudo-slave labor. This has been one of Bernie Sanders's pet peeves for years, that we not only provide financial assistance to companies who lay off American workers, we even spend taxpayer money to help finance the disappearance of American jobs.

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Matt Taibbi

Matt Taibbi is a contributing editor for Rolling Stone. He’s the author of five books and a winner of the National Magazine Award for commentary. Please direct all media requests to taibbimedia@yahoo.com.

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