“The Great American Bubble Machine” is a phrase that originated in a 2009 article published by Rolling Stone magazine. The article, written by journalist Matt Taibbi, was titled “The Great American Bubble Machine: From tech stocks to high gas prices, Goldman Sachs has engineered every major market manipulation since the Great Depression.”
In this article, Taibbi criticized the investment bank Goldman Sachs for its alleged role in various financial bubbles and market manipulations throughout history. The term “bubble” refers to a situation in which the prices of assets, such as stocks, real estate, or commodities, rise to unsustainable levels driven by excessive speculation and hype, only to eventually collapse, causing significant economic disruption.
Taibbi’s article specifically accused Goldman Sachs of profiting from and contributing to a series of financial bubbles and crises, including the dot-com bubble of the late 1990s, the housing bubble that led to the 2008 financial crisis, and the rising prices of commodities like oil and food.
The article painted a critical picture of Goldman Sachs as an institution that allegedly used its influence, connections, and financial expertise to manipulate markets for its own gain. It suggested that the bank’s actions not only exacerbated economic inequality but also played a role in destabilizing the global financial system.
It’s important to note that while the article was widely discussed and had an impact on public discourse about the financial industry, it also generated controversy and debate. Some criticized the article for oversimplifying complex financial dynamics and assigning too much responsibility to one institution.
“The Great American Bubble Machine” remains a notable piece of financial journalism that raises questions about the role of financial institutions, market manipulation, and the broader economic consequences of speculative bubbles.