Here’s how Goldman Sachs is making your beer more expensive – Washington Post

  Here’s how Goldman Sachs is making your beer more expensive – Washington Post

Over the weekend, the New York Times published a long investigation into how investment banks are manipulating aluminum prices by controlling warehouses, creating a choke point and deriving tremendous profits off the top. Earlier, the Huffington Post put the problem more starkly: Goldman Sachs is making your beer more expensive!
But, wait — how does the scam actually work? Even some close readers were left befuddled. To make matters more confusing, Goldman Sachs responded to the Times‘ story in a Politico newsletter Monday morning, saying that the buildup in warehouse inventories was simply a matter of economics. “As with other global commodity markets, prices are ultimately driven by supply and demand, and there’s been significant overcapacity in the global aluminum market for years now,” a Goldman spokesman said. “Thus, the need for storage and the role the warehouses have increasingly played. In many ways the Times is confusing a symptom for the cause.”