Earlier this week, The New York Times described how Goldman Sachs was artificially raising the the price of aluminum. Some people believe Goldman, some people believe The Times, and some people are really, really confused by the whole thing. How confused? Charles Gasparino, a Fox Business News reporter, read the article three times and still had no idea what the big deal was, so The Daily Show brought in an elementary school to break it down. For your convenience, here's a rundown on the confusion. Hopefully, that means your prepubescent niece won't need to explain it to you.
The Times argues that Goldman hoards aluminum, raising the global price and increasing their profits
In 2010, Goldman Sachs purchased Metro International in Detroit, where the huge bank currently stores 1.5 million tons of aluminum. According to The Times's Dan Kocieniewski, since the law requires that 3,000 tons of aluminum leave the warehouse each day, workers spend most of their time driving the aluminum from one warehouse to another.
The back-and-forth lengthens the storage time. And that adds many millions a year to the coffers of Goldman, which owns the warehouses and charges rent to store the metal. It also increases prices paid by manufacturers and consumers across the country.
Seems pretty straight forward, right? Wrong.