Bankster gets subpoenaed.....stocks drop: Wall Street and accountability don't mix

June 7 (Bloomberg) -- U.S. stocks retreated, erasing an early advance, as financial shares slumped after Goldman Sachs Group Inc. was issued a subpoena from the Financial Crisis Inquiry Commission.

Goldman Sachs fell as much as 1.1 percent after the FCIC said the subpoena was issued because the investment bank hasn’t complied with requests for documents. Citigroup Inc., Bank of America Corp. and JPMorgan Chase & Co. also dropped. Alcoa Inc. and Freeport-McMoRan Copper & Gold Inc. declined as metal prices slumped. Bristol-Myers Squibb Co. jumped 7.2 percent after Goldman Sachs raised its rating to “buy.”

The S&P 500 slipped 0.3 percent to 1,061.47 at 11:02 a.m. in New York. The Dow Jones Industrial Average decreased 23.88 points, or 0.2 percent, to 9,908.09.

“It’s a surprise why Goldman wouldn’t comply; it’s an easy thing and it makes you wonder why,” said Matt McCormick, a portfolio manager at Cincinnati-based Bahl & Gaynor Inc., which has $2.8 billion under management. “If you get surprising bad news, which I would call this Goldman thing, the market doesn’t like it. But the market is also digesting the payroll numbers and concerns that our economy is not picking up.”

U.S. stocks fell last week as lower-than-estimated jobs growth and a worsening government debt crisis in Europe fueled concern the global economic recovery will slow. The S&P 500 tumbled 2.3 percent to 1,064.88 and the Dow retreated 2 percent to 9,931.97 last week, the lowest level since Feb. 8. ..........(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20601087&sid=afgPs.bbsCuQ&pos=1

You don't think US companies (especially the biggest and best) don't make money hand over first.

It is funny the double view point taken on DU when it comes to companies.

On one hand you see story about Walmart of Exoon making elventy quadrillion dollars and people go crazy about how much money they are making.

Then you have same people claiming investing in companies is a ponzi scheme.

So which is is it. Companies make no profits or companies make too much profits. It logically can't be both at the same time.

The essential feature of a ponzi scheme is that new participants are paying the returns for existing members. The stock market is similar to this because stock market profits depend on perpetually expanding markets.

It is different because stocks can pay dividends, but they don't have to do it. That still doesn't change the underlying nature of the markets.

Sam Walton didn't make his fortune stock trading or investing in the stock market. He created his wealth by starting and running Walmart. Small scale investors are in a totally different situation than the Walton family.

Stock market doesn't REQUIRE ever expanding profits. It rewards profit expansion however even if companies never expanded they would generate constant profits year after year and that has value.

Because of the consistent extraction of value by non-productive (parasitic) elements, this scheme requires constant growth. So there is a pyramid element, but it's not the simple direct transfer of money to the top that the classic Ponzi uses. Complexity is added to increase the take and conceal the nature and destination of the theft.

Let's not have any regulations for the financial big boyz to violate. If you're sucker enough to put your money into the rigged casino, you deserve to get fleeced, and this notion of capitalism as some sort of equitable economic system can finally die its death as an enemy of humanity.