Let's Talk About How Goldman Makes Money; 1 in 6 in USA Unemployed or Underemployed

Quote from asiaprop:

Another post full of negativity? You slowly but surely give out the impression that you are a little depressed boy sitting somewhere in the Midwest, having been burned by your subprime mortage, and you now feel you have to go on a crusade against WallStreet, China, and what is next?

The article you posted DOES NOT support the point that what Goldman does is bad for America. The p&l GS pumped out did not come in the slightest from structuring any derivatives. Nor did it come from any illegal activities. It came from sales and trading by some of the brightest. Dont get me wrong, GS is not my god. But a company that currently maintains a full oil tanker fleet to circumvent the technicalities of how oil futures currently trade
is something no other bank does (correct me if I am wrong). This among uncountable other examples is something I respect GS for. To be clear, I dont respect GS for its traders but for the foresight of its senior management, who guide senior traders to take risk when no other banks take risk and to reduce risk when everyone is as bullish as it gets. How can you or Krugman blame GS for the fact that they sold off their structured Mortgage derivatives while all other idiots did not get what was going on with a crumbling housing market.

GS did (almost) everything right yet everyone seems to hate GS, why? A simple answer: Envy!!! There are always winners and losers. The whole capitalist system is build on the premise to reward those who take risk and maximize gains within the legal framework. Since when is there anything wrong with that?
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Is this about China? No? fuck off. You're beginning to look more and more of a troll. I might put you on ignore.

GS also got billions and billions in stealth bailouts through AIG. Makes your whole post about how godly they are a farce. But you didn't know that, because you talk with your mouth wide and think with your ass.

I happen to agree 100% with Krugman, and also teaches us all a bit more.
 
Solid, outside the box critique.

Quote from fhl:

This article just about takes the cake for stupidity.

1 What GS does is bad for America? Krug doesn't like the way they allocate capital? Of course he doesn't. He wants the gov't to allocate capital. And I mean you have to be dumber than a mud fence to think gov is gonna do it better.

2 Compensation for results is bad for America? Once again, that is just about the stupidest thing i've ever read. It's not going to take too long to find out just how stupid over the next several years when we see the results of Obama GM come in.

3 So krug wants barney and (friend of Angelo) chris to reform wall street, eh? Is he really too ignorant to notice what they did for the gse's, or that they are now, as i write, agitating for the gse's too AGAIN lower lending standards and get the money moving? It's almost too much to comprehend, this stupidity.


Krug can't stand GS "slicing and dicing " and moving money around. He says it serves no useful purpose. Of course, you have to remember that he wants the gov't to move the money around, you know, to 'green' projects and the like. Who's stupid enough to think that this is going to be the 'model of efficiency'?

And then he has to hint around at this idiotic reasoning that GS is private during the good times and socialist during the bad times. Did he not notice that GS and wall street give up half of their profits for decades while gov't shared in NONE of the losses? Only a freakin moron would go on about this capitalist during good times and socialist during the bad times. Hey, how about if you take away the bailouts, you also take away the confiscatory taxation of profits, too, krug. Anyone think he'll bite on that?

And when the mortgage market topped out, GS shorted it. Wow, now that's a reason to hate them. Congratulations for being a schmuck.
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asiaprop has to be a paid poster, or he works for GS. I know of no one outside Wall Street who like that firm.

Is the government responsible for proping up insolvent banks that ran up excessive CDS, CDO, CLO, CMBS, etc. deriviatives exposure or is the bank, it's shareholder and bondholders? Since many of these financial institutions continue to have trouble covering these bad bets, perhaps the government should raise the interest rate on the FED Reserve programs and TARP funds to 28% and start billing them for late fees to see if that wont encourage better behavior from these honest and upstanding institutions.

The Genius of Goldman?

What’s up with the mainstream media acolytes who keep
aluding to the genius of Goldman Sachs?

What genius?

If it wasn’t for their former CEO Hank Paulson bankrupting
their competition (Bear and Lehman) and then extorting
Congress behind closed doors under the threat of martial law,
they wouldn’t even be in business today.

Does having your former CEO being able to choose who among
your competitors lives, or dies, make you a genius?

Does having your former CEO bail you out via the backdoor
of AIG, make you a genius?

Does running the latest shadow-government version of
INSLAW/PTECH/PROMIS software and front running the market
(not mention their own clients) as the defacto trading arm
of the Plunge Protection Team make you a genius?

Does stuffing profits offshore and only paying a 1% income tax
rate, after being bailed out by taxpayers who pay 20-30-40
times that, make you a genius?

Was former Goldman Chairman and NY Fed head Stephen Friedman a
genius, or just another front running, inside trader?

Since when does front running & shearing the sheep make one a genius?

Goldman is no more a genius than is the IRS.

One robs you blind under the protection of the law of the land,
and the other robs you blind while operating outside of it.
 
Quote from asiaprop:

Or could it all be that some of you are actually anti-semitic but dont want to look stupid so rather than blaming it on the Jews GS seems a much better target?
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Apparently Krugman has an ax to grind with Jews, since he criticized current policy pertaining to GS. Might as well throw Jon Stewart, half his staff and a large percentage of Jewish GS critics in the in the antisemitism crowd. They have issues with the way GS is allowed to conduct its business and therefore are blaming Jews and obviously antisemitic.
 
Many of Goldman's reprehensible activities were clearly not illegal but merely unethical. Based, however, on the payments to plaintiffs made by Goldman Sachs so far, it is safe to say that Goldman has also broken laws. Apparently it is illegal to misrepresent a product you are selling, such as promoting a triple A-rated CDO that you, in fact, knew should not have a triple A rating, because you knew all along that the underlying mortgage bonds where of questionable value and you therefore sought to influence, i.e., bribe, rating agencies by hiring them as consultants to tell you how to package the CDO in order to qualify for a triple A, and because you shorted the same CDO's that you promoted as sound investments. Expect more suits to follow.
 
Goldman is the Welfare Queen of Wall Street - the major and primary expertise of the Goldman partners is the ability to socialize losses (i.e., have us, the public, pay for them through their governmental connections) and privatize profits (maintain the bounties from profitable activities in their own hands-again through their governmental connections). They do this through their intertwining networks in the halls of government, the Treasury, Fed and business. A Barron's article several months ago laid Goldman's most recent machinations bare in discussing how Goldman has used government guarantees of certificates of deposits to raise $20,000,000,000+ at extremely favorable interest rates to finance its proprietary trading activities - where equivalent financing raised without government guarantees would have cost 500 or 600 basis points more - and which would have materially cut into Goldman's profits. These guarantees were supposed to help banks raise money to lend - Barron's article noted that Goldman's CFO bragged about using the funds for its own trading activities. In my opinion, Goldman never met a conflict or potential conflict that it couldn't circumnavigate, at least in terms of its own code which embraces an extremely elastic view of one's ethical and fiduciary obligations. And the arrogance of this group is exemplified by Hank Paulson's attempt to get Congress to legislate unprecedented financial powers to him with no judicial oversight to "bail-out" the economy . The financial press in the past has, in general, been either too ignorant, or too in awe of Goldman, or both to write anything other than slavishly flattering pieces. If the general public knew all of the facts about Goldman I suspect there would be the same outrage
 
Quote from 4444CJones4444:

Apparently Krugman has an ax to grind with Jews, since he criticized current policy pertaining to GS. Might as well throw Jon Stewart, half his staff and a large percentage of Jewish GS critics in the in the antisemitism crowd. They have issues with the way GS is allowed to conduct its business and therefore are blaming Jews and obviously antisemitic.
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Stop trying to twist this to some anti-Semitic argument. No one has mentioned anything about race here so just stop.
 
Quote from Roman Candle:

Stop trying to twist this to some anti-Semitic argument. No one has mentioned anything about race here so just stop.
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I take it you didn't read the post I quoted? Or did you quote me by mistake?
 
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