Tuesday, July 23, 2013

Too Big To Be Too Big.

       Did you hear the one about the bank that cost you extra every time you buy a can of beer or soda? No they haven't invested in a beer distillery of a soda bottling company. It's not even because they're trying to eliminate glass or plastic bottles. In fact they don't even make aluminum cans. It's a lot sneakier than that.              And Congress is beginning to look into the situation. So, you know what that means. You don't? Well what it means to have Congress look into your operation is for you to get to go to Washington, maybe. As for the operation under investigation, it doesn't mean anything for at least a decade. That's assuming you provide the necessary campaign donations. That way there will be sufficient arguments back and forth to draw the investigation out for a considerable time.
       If any new laws or rules come out of the investigation, it'll be long after you're retired. As I've said before, by shuttling aluminum ingots between warehouses they, think Goldman Sacks and others, jack up the price of aluminum in America. But just raising the price of aluminum cans and cars is only part of the problem.
Here's another kicker. It also raises the cost of manufacturing any product with aluminum in it. So what? Well, it means that it puts American manufacturers at a disadvantage against foreign manufacturers. Therefore our cars are more expensive abroad and at home, product for product, foreign competitors have the edge on pricing because Goldman wants to make a little more. And they do. Make a little more, that is. They make multiple millions of $$$. And everybody pays. That's the beauty of this deal. The big banks make money on us even when we don't do business with them.

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