[yummyfajitas]

The artificial supply squeeze on industries benefits... what exactly, besides Goldman itself?

If aluminum becomes more scarce in the future (Goldman seems to be betting that it will be), then Goldman has done us all a favor by conserving it in the present.

If it is not more scarce in the future, then Goldman will lose money.

[tptacek]

It's troubling that a comment like this has to be buried deep in a thread about religion, Platonic ideals, might-makes-right, higher-order thought, and the nature of morality --- most of it stipulating Goldman is evil.

[dman]

In an ideal scenario that is what would happen. Unfortunately the invisible hand of adam is now tied behind his back. When 2008-2009 happened I was mildly optimistic that a new kind of finance firm would emerge - one which would use technology more intelligently, have a lower cost structure by virtue of having no bad assets on their books and one that would accept lower margins in order to make a headstart against established firms. In a well functioning market that is what would have happened - established players who got it wrong would have gone out of business leaving room for newer younger firms to spring up and do things in a better way. I still cannot place my finger on what exactly broke but the deadwood does not seem to burn in forest fires anymore.