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Weekend Economists Go for the Gold December 9-11, 2011 [View All]

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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Dec-09-11 10:15 PM
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Weekend Economists Go for the Gold December 9-11, 2011
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Edited on Fri Dec-09-11 10:24 PM by Demeter
So what is the topic to distract us from the sordid reality of global economic and political conditions, you ask. Is it the Olympics? Is it Motown Oldies?

No, today, December 9th is a very special day for us to is the 190th anniversary of the birth of the man who founded....The Vampire Squid!

"Marcus Goldman, who worked as a peddler with a horse-drawn cart upon arriving in America, and went on to found Goldman Sachs, was born in Germany on this date in 1821. He created an eponymous financial firm in 1869 and took in his son-law, Samuel Sachs, in 1882. Goldman Sachs pioneered the use of commercial paper (IOUs) for business capital and also helped to establish the initial public offering market. The company, now headed by Lloyd Blankfein, paid nearly 1,000 of its executives more than $1 million each after receiving bail-out funds from the Troubled Assets Relief Program (TARP) in 2008. Goldman Sachs ranks #1 among financial firms in annual net income, earning close to $10 billion per year. Among the assets it owns seems to be the U.S. government.

They bundled toxic mortgages into complex financial instruments, got the credit ratings agencies to label them as AAA securities, and sold them to investors, magnifying and spreading risk throughout the financial system, and all too often betting against the instruments they sold and profiting at the expense of their clients. Senator Carl Levin

Marcus Goldman, Entrepreneur

Marcus Goldman was a German immigrant from the Bavarian town of Frth. He left Germany in 1848 for the United States.

Goldman founded his investment business in 1869, a time when loans and credits were rare and expensive. He bought debt obligation certificates from his clients and sold them to banks in New York, making him a pioneer in the commercial paper business. In 1869 Goldman opened an office located in Pine Street in New York's banking and financial districts. When his son-in-law, Samuel Sachs, joined the business, the company was renamed Goldman Sachs, which would become one of the most well-known investment banks in the United States and around the world. The business was listed at the stock exchange in 1896. One of the oldest clients are the companies Sears and Roebuck and Co.

The first international office was opened in London in 1970, followed by Tokio and Zurich in 1974. Since 1999 the companys stocks with the ticker abbreviation "GS" are traded at the New York Stock Exchange.

Goldman founded the firm in a one-room office on Pine Street. Goldman bought promissory notes from tobacco and diamond dealers that had been issued by their customers and then sold the notes to banks for a small profit, according to Time magazine. Son-in-law Samuel Sachs joined in 1882 and the firm became Goldman Sachs in 1885...SEE BUSINESS SLIDE SHOW AT LINK

Yes, it all started in Germany. Doesn't everything?

Goldman came from an Ashkenazi Jewish family, the son of Ella and Wolf Goldmann, a former schoolteacher and cattle dealer. He immigrated to the United States from Frankfurt am Main, Germany, in 1848 during the first great wave of Jewish immigration to America, resulting from the Revolutions of 1848 in the German states.

Upon arriving in America, he worked as a peddler with a horse-drawn cart and later as a shopkeeper in Philadelphia. There, Goldman met and married eighteen year old Bertha Goldman (no relation), who had also emigrated from Germany in 1848.

In 1869, with his wife and five children, Goldman relocated to New York City and hung out a shingle on Pine Street in lower Manhattan, with the legend Marcus Goldman & Co., setting himself up as a broker of IOUs.

From his earliest days of his business, Goldman was able to singlehandedly transact as much as $5 million worth of commercial paper a year. Successful though he was, Goldman's business was insignificant compared to that of the other Jewish-German bankers of the day. Concerns like J. & W. Seligman & Co., with working capital of $6 million in 1869, were already modern-day investment bankers immersed in underwriting and trading railroad bonds.

Goldman's youngest daughter, Louisa, married Samuel Sachs, the son of close friends and fellow Lower Franconia, Bavaria immigrants. Louisa's older sister and Sam's older brother had already married.

In 1882, Marcus Goldman invited his son-in-law Samuel to join him in the business and changed the firm's name to M. Goldman and Sachs. Business boomedby 1880 the new firm was turning over $30 million worth of paper a yearand the firm's capital was now $100,000, all of it the senior partner's.

For almost fifty years after its inception, all of Goldman Sachs's partners were members of intermarried families. In 1885, Goldman took his own son Henry and his son-in-law Ludwig Dreyfuss into the business as junior partners and the firm adopted its present name, Goldman Sachs & Co. In 1894, Henry Sachs entered the firm, and in 1896, the firm joined the New York Stock Exchange.

When Marcus Goldman retired, he left the firm in the hands of his son Henry Goldman and his son-in-law Samuel Sachs. In 1904, two of Sam Sachs's sons, Arthur and Paul, joined the firm straight out of Harvard University.

In the summer of 1904, Marcus Goldman died. From humble beginnings, the institution he left behind would soon become a full-service investment bank. With the advent of underwriting, coupled with the extensive lending, foreign exchange, and trading operations, the structure of Goldman Sachs was in place. Although much smaller and less sophisticated, it was already recognizable as the firm it would become.
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  -Weekend Economists Go for the Gold December 9-11, 2011 Demeter  Dec-09-11 10:15 PM   #0 
  - ANOTHER WEEKEND WITHOUT A BANK FAILURE  Demeter   Dec-09-11 10:26 PM   #1 
  - Piketty, Saez and Stantcheva: Taxing the 1% Why the Top Tax Rate Could be Over 80%  Demeter   Dec-09-11 10:36 PM   #2 
  - Finally, Higher Taxes for the 1% Is Occupy Behind Governors' Moves to Make the Wealthy Pay Their S  Demeter   Dec-10-11 12:34 PM   #76 
  - More fun to come...see you tomorrow!  Demeter   Dec-09-11 10:37 PM   #3 
  - 5th rec  some guy   Dec-10-11 12:15 AM   #4 
  - Life is risky  Demeter   Dec-10-11 05:34 AM   #6 
  - Down to the wire now in Europe.  girl gone mad   Dec-10-11 12:20 AM   #5 
  - Depression and war  DemReadingDU   Dec-10-11 06:35 AM   #17 
  - The MFGlobal Subthread  Demeter   Dec-10-11 05:37 AM   #7 
  - CFTC Issues A Clear Statement: MF Global Customers Have Priority In This Bankruptcy  Demeter   Dec-10-11 05:44 AM   #8 
  - Testimony: U.S. House of Reps, Committee on Agriculture, Washington, DC by Commissioner Jill E. Somm  Demeter   Dec-10-11 05:47 AM   #9 
  - Trades Are Linked to Missing MF Global Funds  Demeter   Dec-10-11 07:47 AM   #39 
  - That would be good news  DemReadingDU   Dec-10-11 07:54 AM   #45 
  - Corzines Know-Nothing MF Global Defense  Demeter   Dec-10-11 05:56 AM   #10 
  - On Corzine - MFG in the fog of war BRUCE KRASTING  Demeter   Dec-10-11 06:05 AM   #11 
     - Incarcerate Corzine By Eric Fry  Demeter   Dec-10-11 07:13 AM   #26 
  - Suppose MFG had been a Chinese firm that disappeared client money?  MannyGoldstein   Dec-10-11 07:26 AM   #32 
     - Don't the Chinese commit suicide? n/t  DemReadingDU   Dec-10-11 07:56 AM   #46 
        - With assistance from the authorities  Demeter   Dec-10-11 08:31 AM   #58 
        - That's the Japanese  Tansy_Gold   Dec-10-11 08:33 AM   #60 
  - Americans Got Much Poorer Last Quarter By CATHERINE RAMPELL  Demeter   Dec-10-11 06:08 AM   #12 
  - All the G.O.P.s Gekkos By PAUL KRUGMAN  Demeter   Dec-10-11 06:13 AM   #13 
  - Santorum: We Dont Need Food Stamps Because Obesity Rates Are So High  Demeter   Dec-10-11 06:16 AM   #14 
  - oops  Demeter   Dec-10-11 06:18 AM   #15 
  - LOL, I read the subject as obesity in rats  DemReadingDU   Dec-10-11 06:39 AM   #18 
  - Land of the Free, Home of the Hungry  Demeter   Dec-10-11 08:08 AM   #49 
  - The EU, ECB, Eurozone Roundup  Demeter   Dec-10-11 06:19 AM   #16 
  - The only real solution to the European debt crisis is credit writedowns  Demeter   Dec-10-11 06:48 AM   #20 
  - Market rout as ECB dashes bond hopes  Demeter   Dec-10-11 06:53 AM   #21 
     - Engineering the Eurozone Collapse - F. William Engdahl on GRTV  Demeter   Dec-10-11 07:27 AM   #33 
  - EU Leaders Drop Demands for Investor Write-Offs  Demeter   Dec-10-11 07:30 AM   #34 
  - Latest Plan for Europe Fails to Wow Investors  Demeter   Dec-10-11 07:36 AM   #35 
     - Eurocrisis Solutions For Whom?  Demeter   Dec-10-11 07:42 AM   #37 
  - European CEOs Move Cash to Germany In Case of Euro Breakup  Demeter   Dec-10-11 07:57 AM   #47 
  - The Euro: That Procrustean Bed... By Adrian Salbuchi  Demeter   Dec-10-11 08:48 AM   #64 
  - morning to one and all  xchrom   Dec-10-11 06:46 AM   #19 
  - Wally Philosophy  Demeter   Dec-10-11 06:56 AM   #22 
  - VS CORPORATE PHILOSOPHY  Demeter   Dec-11-11 07:52 AM   #95 
  - Got my R in - I am totally out of the loop otherwise - meanwhile, here in NY...  bread_and_roses   Dec-10-11 07:02 AM   #23 
  - Hope you get a break  Demeter   Dec-10-11 07:19 AM   #28 
  - TY on tow/toe  bread_and_roses   Dec-10-11 07:26 AM   #31 
  - hi  some guy   Dec-11-11 12:16 AM   #86 
  - A delightful distraction  Tansy_Gold   Dec-10-11 07:02 AM   #24 
  - Those are so cool!  DemReadingDU   Dec-10-11 07:04 AM   #25 
  - Somebody's got way too much free time  Demeter   Dec-10-11 07:24 AM   #30 
  - I love this stuff and enjoy passing it on  Tansy_Gold   Dec-10-11 08:25 AM   #55 
     - You almost make me want to pierce my ears  Demeter   Dec-10-11 08:30 AM   #57 
     - I've reached an age where I do it for me, not for what I think  Tansy_Gold   Dec-10-11 08:38 AM   #63 
     - Patterns on Etsy  DemReadingDU   Dec-10-11 09:25 AM   #67 
  - Vampire calamari.  Fuddnik   Dec-10-11 07:15 AM   #27 
  - Any Way I Can Get It!  Demeter   Dec-10-11 07:21 AM   #29 
  - DU3 - Thoughts on what is going to happen with the SMW and WEE  DemReadingDU   Dec-10-11 07:50 AM   #41 
  - now i want calamari. nt  xchrom   Dec-10-11 07:42 AM   #36 
     - I'd settle for breakfast  Demeter   Dec-10-11 08:12 AM   #51 
        - i looked at the clock last night -- it was dark and i was getting sleepy --  xchrom   Dec-10-11 08:29 AM   #56 
           - I'm okay--it was the other players  Demeter   Dec-10-11 08:32 AM   #59 
              - that's good. nt  xchrom   Dec-10-11 08:37 AM   #62 
  - Analysis - Sarkozy, Draghi winners in EU rift  xchrom   Dec-10-11 07:43 AM   #38 
  - They are captains on a sinking ship  Demeter   Dec-10-11 07:54 AM   #44 
     - I've been reading - you've been posting - tons of articles  xchrom   Dec-10-11 08:04 AM   #48 
        - I think they are all still trying to screw each other  Demeter   Dec-10-11 08:10 AM   #50 
           - wow -- that hadn't occured to me -- and i think you might very well on to something.  xchrom   Dec-10-11 08:17 AM   #52 
  - The Occupation Continues to Diversify  Demeter   Dec-10-11 07:50 AM   #40 
  - JP Morgan Chase Mic Checked at Princeton Recruiting  Demeter   Dec-10-11 07:52 AM   #42 
  - Goldman Sachs Anti-Recruitment Session at Princeton University  Demeter   Dec-10-11 07:53 AM   #43 
  - Your Money or Your Life: Humanity Nears a Deadline to Decide Which it Will Surrender  Demeter   Dec-10-11 08:18 AM   #53 
  - "Your money or your life"  Demeter   Dec-10-11 08:24 AM   #54 
  - needs a link  some guy   Dec-10-11 01:56 PM   #78 
     - Thanks!  Demeter   Dec-10-11 05:31 PM   #82 
  - An Idiots Overview Of Why Western Capitalism Is Crashing By Alan Hart  Demeter   Dec-10-11 08:37 AM   #61 
  - I didn't like this piece at all.  some guy   Dec-10-11 02:27 PM   #79 
     - Well, If you consider that one worker can only do so much  Demeter   Dec-10-11 05:34 PM   #83 
        - one investor.  some guy   Dec-10-11 09:39 PM   #85 
           - I'm with you, some guy  Tansy_Gold   Dec-11-11 11:28 AM   #104 
              - That's why and how you'll get my vote for President.  some guy   Dec-11-11 01:22 PM   #109 
  - "Dog whistle": economics code words  Demeter   Dec-10-11 09:01 AM   #65 
  - I REALLY need some breakfast  Demeter   Dec-10-11 09:07 AM   #66 
  - have a good breakfast! -- i might go get some biscuits and gravy.  xchrom   Dec-10-11 09:27 AM   #68 
  - I just had a breakfast that would make Ronald McDonald proud.  Fuddnik   Dec-10-11 10:56 AM   #72 
  - European Council Unity dearly bought  xchrom   Dec-10-11 09:29 AM   #69 
  - Max Keiser-Crazy David Cameron SUICIDAL with knife in a Euro gunfight!!!!!  Demeter   Dec-10-11 11:34 AM   #73 
     - tee-hee -- fingers crossed! nt  xchrom   Dec-10-11 11:42 AM   #74 
     - Oh, that was good.  Prometheus Bound   Dec-10-11 03:59 PM   #80 
  - I feel so fucking lost these days. eom.  Hotler   Dec-10-11 10:18 AM   #70 
  - We all found each other  Demeter   Dec-10-11 12:32 PM   #75 
  - I'm lost, I can't find anything/anyone in DU3  DemReadingDU   Dec-11-11 06:49 AM   #87 
  - I can't either! ARGH!  Tansy_Gold   Dec-11-11 08:51 AM   #98 
  - Thank you. n/t  Hotler   Dec-11-11 09:34 AM   #99 
  - Take heart, dear friend  Tansy_Gold   Dec-10-11 01:41 PM   #77 
  - Me too  DemReadingDU   Dec-10-11 04:30 PM   #81 
     - Some who were made to feel unwelcome in the shade  Tansy_Gold   Dec-10-11 09:16 PM   #84 
  - India inches closer to crisis as rupee retreats  xchrom   Dec-10-11 10:20 AM   #71 
  - I Said No to My Student Loan: One Borrower's Decision to Stop Paying  Demeter   Dec-11-11 07:16 AM   #88 
  - How the Occupy Movement Helped Americans Move Beyond Denial and Depression to Action  Demeter   Dec-11-11 07:18 AM   #89 
  - Using Debt to Crush Democracy: How Financiers Are Waging Warfare Against Nations  Demeter   Dec-11-11 07:21 AM   #90 
  - 10 Fun Facts About the Top 1 Percent  Demeter   Dec-11-11 07:43 AM   #91 
  - 6 Members of Walton Family Have More Money Than 30% of Americans  Demeter   Dec-11-11 07:47 AM   #93 
     - Obama: jobless rate may fall to 8% by election  Demeter   Dec-11-11 07:49 AM   #94 
  - Michael Moore: 5 Ways for OWS to Keep Sticking it to Capitalist Crooks as Winter Comes  Demeter   Dec-11-11 07:46 AM   #92 
  - How Goldman Sachs and Other Companies Exploit Port Truck Drivers  Demeter   Dec-11-11 07:58 AM   #96 
  - Negative Equity: How Many Loans are Underwater in Your State?  Demeter   Dec-11-11 08:01 AM   #97 
  - If I lose track of you guys in DU3......  Hotler   Dec-11-11 09:48 AM   #100 
  - Editorials & Other Articles is going to be were in DU3 ? n/t  Hotler   Dec-11-11 09:50 AM   #101 
  - I reckon that would be the "Good Reads (Forum)"  Ghost Dog   Dec-11-11 10:39 AM   #102 
  - SMW just got locked out of Late Breaking  InkAddict   Dec-11-11 11:07 AM   #103 
  - I saw that. :grrrrr:  Tansy_Gold   Dec-11-11 11:33 AM   #105 
     - I don't like the idea of "host". It's just a way for..  Hotler   Dec-11-11 12:42 PM   #108 
  - I am going to move the Subject of this thread over to the DU3 E&E - Economy Group.  Hugin   Dec-11-11 11:52 AM   #106 
     - Thanks!  DemReadingDU   Dec-11-11 12:13 PM   #107 
        - Just walking through the graveyard here.  Fuddnik   Dec-11-11 03:58 PM   #110 
           - Think  Ghost Dog   Dec-11-11 04:30 PM   #111 
              - Well done. Thank you. eom.  Hotler   Dec-11-11 05:09 PM   #112 

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