Taibbi on Wall Street: One Ponzi Scheme After the Other

Rolling Stone contributing editor Matt Taibbi has gained a reputation for investigating Wall Street’s systemic abuses of power (for examples you can see Daily Reckoning posts on his Bear Stearns and Lehman Brothers Autopsy and his description of how the US Economic Team is Packed With Wall Street Insiders). Recently Taibbi appeared on the Colbert Report and, despite being afraid of Goldman Sachs lawyers, described some of the sordid behavior he’s uncovered.

See the whole video — including what Taibbi sees as the possible next bubble — below. The clip came to our attention via a post from The Mess That Greenspan Made.

 

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Here’s an interview highlight:

* Colbert: “You’ve said that Goldman Sachs takes advantage of bubbles that they help create. What do you mean by that?”

* Taibbi: “Wall Street really used to be about helping investors find good business opportunities which in turn would create jobs. Wall Street had an important part in helping stimulate the real economy. What’s happened in the last twenty years is that it’s really turned into one ponzi scheme after the other…it’s been tech stocks, mortgages, or the commodities bubble last year. It’s turned into a purely speculative economy and it’s really basically a casino now where Wall Street makes a ton of money, but no real jobs are created.”