You have to admire those guys for their chutzpah.
When GS bought Metro International Storage five years ago the Detroit warehouse network had 50,000 tons of aluminum in storage. At 48 cents per ton per day that's daily rent of $24,000.
Today they're storing 1.5 million tons for a daily rent of over $700,000!
Before Goldman, it took six weeks for an order to be delivered. Now it takes well over a year. Clogging up the supply line has also caused an across the board price increase even if you never deal with GS.
Rumpelstiltskin is spinning in his grave!
Net benefit to society? Zilch... although we all get to pay a little more for aluminum products.
Net benefit to Goldman Sachs? Somewhere in the range of $250 million a year.
A 100% tax on non-productive economic activity would help steer the geniuses who dream up this stuff towards doing something useful.
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