How Corrupt Politicians Like Chris Christie Partner with Wall Street to Rip Off American Retirements

[Trust Buster]

4. Excellent OP

Wall Street successfully lobbied Congress and the States to repeal "the Prudent Man Rule" with regards to trusts and pensions. The Prudent Man Rule disallowed trust and pension administrators from using client money on speculative investments. With this new freedom in place, here's what Goldman Sachs did in 2008.

Goldman Sachs bought a huge position in "short term" oil contracts with their own house money. Then they had their analysts send out newsletters to their institutional clients predicting that the price of a barrel of oil was going to hit $200 a barrel and suggested that these trusts and pensions buy "long term" oil contracts to take advantage of the spike in oil prices. The huge flow of capital from the trusts and pensions into "long term" oil contracts made Goldman's "short term" oil contracts a self fulfilling prophecy. That's why the price of gasoline was at $4.50 a gallon in 2008 and carried the price of food up along with it. Oil supply and demand remained constant during this period.

Once Goldman cashed in on their "short term" oil contracts, they redirected client capital flows elsewhere sending the price of a barrel of oil plunging from a peak of $149 a barrel down to $40 a barrel and thereby sticking the trusts and pension funds with underperforming "long term" oil contracts. And these psychopaths pulled this stunt in 2008, at the very same time that our economy lay in ruins from their mortgage backed securities scams and we were rushing to bail them out.