The Secret Goldman Sachs Tapes: A System That Has No Accountability
By LawrenceAs reported by many major websites including Bloomberg and ZeroHedge, the explosive information of these tapes told us one thing – the system is broken. There is no resolution to this problem. You cannot fix something that is completely broken.
This is exactly what I wrote for years – the system is corrupted and that retail investors should focus on profiting from this environment and be defensive with their assets. There is really no point to waste time or energy to discuss how bad the system is. The only way to fix it is to completely destroy it. For now, that is not an option.
This is called end game scenario. It can take many years until the system is completely broken down. Good examples of end game scenarios we’ve witnessed include USSR and Japan.
In a messed up environment like that, people who focus all their energy on their own prosperity will do way better than those who drift with no such goal.
Old style thinking of creating generic businesses with long term objectives will not work in this environment because the system as a whole is now hostile against small business creation. The 5-year failure rate for new businesses was used to be 90%. In this environment, we are looking at near 100% failure. Micro businesses with unique niche and businesses with big money backing are probably the two remaining options with chance of success.
Focus on making money from trading in this environment is probably better than many other long term ideas.
Resources
http://www.propublica.org/site/author/jake_bernstein
http://www.thisamericanlife.org/sites/default/files/TAL_536_transcript.pdf
http://www.bloombergview.com/articles/2014-09-26/the-secret-goldman-sachs-tapes
