Tag Archives: Goldman-Sachs

Oligarchs and the Free Market

The idea is going around, pushed by the New Economics Foundation, Half Sigma, and others, that bankers are worth less than janitors to economic growth.

While janitors have a wealth creation – to -pay ratio of 10:1, speculators are net drains on the world economy

Rather than being wealth creators bankers are being handsomely rewarded for bringing the global financial system to the brink of collapse

Paid between £500,000 and £80m a year, leading bankers destroy £7 of value for every pound they generate.

There is no question that our economic crisis is a direct result of the Oligarchs (a) betting money they did not have, and (b) illegally colluding with the Treasury Department to bail them out for those bad bets.

If the US Government had been serious about protecting a ‘free market’ system of the national security crisis they created, it would have destroyed the wealth of the Oligarchs companies, and drafted the needed bankers until such time as the wealth they had destroyed had been restored. However, the US Government is not concerned with reestablishing a free market system. The Treasury Department has been captured by the Oligarchs.

Our Future, Outsourced by the Oligarchs

I don’t disagree with Bill Owens’ take on the Taiwan Relations Act, but The View from Taiwan notes that Owens’ wordds are bought and paid for by the Communist Party.

Of course, so are the remarks of our President.

When the Oligarchs (the CEOs of Goldman Sachs and Morgan Stanley, the Secretaries of the Treasury Henry Paulson and Tim Geithner) looted our treasury, they did not only transfer wealth from Americans to their pockets. They assisted in a raid against the United States that changed our international position more than any single event since 1941.

God’s Work

Goldman Sachs, after looting billions from the Treasury and getting H1N1 “Pig” Flu vaccine before nurses and hospitals, now announces that God is on its side

He said modern banking performed a vital function and described himself as just a banker ‘doing God’s work’.

Two previous CEOs of Goldman Sachs were Jon Corzine and Henry Paulson. I wonder if they thought Goldman Sachs was on a divine mission, too?

The Cover-Up, not the Crime

Interesting pieces, on how Federal Reserve Chairman Ben Bernanke and Goldman Sachs CEO / Treasuury Secretary Henry Paulson threatened to fire the board and manage of Bank of America, unless the Bank agreed to spend money on projects that were politically popular with the right people.

No surprise, except

Congressional hearings into these allegations were conducted on June 25, 2009, with Bernanke testifying that he did not bully Ken Lewis. Under intense questioning by members of Congress, Bernanke said, “I never said anything about firing the board and the management [of Bank of America].”

Naive Russians

Hard to believe someone actually thought that Goldman Sachs trading software was worth the trouble to steal. The value in Goldman Sachs isn’t its ability to actually make money on the market. That is just naive, and its typical of Russian foolishness that they bought into Goldman’s press releases. Rather, Goldman Sachs makes money through securing friendships with high government officials, and from there getting billions of dollars in grants.

Some Americans may be surprised that the term Oligarchs (used to refer to high ranking friends of Goldman Sachs) did not even originate in the United States, but once only referred to powerful friends of Yeltsin and the Russian government.

Friends of Geithner

From Slate Magazine, and sent in by Michael:

So who selected Geithner back in 2003? Well, the Fed board created a select committee to pick the CEO. This committee included none other than Hank Greenberg, then the chairman of AIG; J!ohn Whitehead, a former chairman of Goldman Sachs; Walter Shipley, a former chairman of Chase Manhattan Bank, now JPMorgan Chase; and Pete Peterson, a former chairman of Lehman Bros. It was not a group of typical depositors worried about the security of their savings accounts but rather one whose interest was in preserving a capital structure and way of doing business that cried out for—but did not receive—harsh examination from the N.Y. Fed.

Tim Geithner is a tool of the financial industry, a quisling who has more in common with the barbarian tribes that are attacking our Treasury than with the government he notionally serves.

Welfare Queens

President Obama and Secretary of the Treasury Geithner have given Goldman Sachs a $13 billion no-strings-attached, no-interest, non-repayable grant

This was operationalized through the AIG Bailout. Goldman Sachs, which has taken billions in TARP funds and other government welfare, and had previously stated it had no material interest in AIG, nonetheless received $13 billion in payments from AIG after the government gave even more money to AIG. Goldman Sachs is not only a fraudster of a company, it is a welfare queen, dependent on the federal government to pay for its reckless, antisocial behaviors.

welfare_queen_fat_woman_goldman_sachs

Other large institutions have benefited as well.

In an inexplicably good move (he, after all, liedjust today on ABC’s This Week by saying he spent his entire career in public service) , Secretary of the Treasury Timothy Geithner has asked for the authority to nationalize large financial institutions. I hope he gets it, and uses it. Zombies such as Citi, and welfare queens such as Goldman Sachs, should be seized, their shareholders wiped out, their officers civially prosecuted for mismanagement and criminally prosecuted for fraud, and their assets transferred to the treasury.

Just as I support a 90% tax on TARP-funded bonuses, salaries, and capital gains, I support the nationalization of zombie banks and welfare queen financiers. Their raids on the Treasury must stop.

Update: Obama has forced the CEO of GM to resign. The head of the UAW, and the CEO of Goldman Sachs, have not similarly angered our President, and still have work.

The Goldman Sachs Bonuses

From CNBC, I gather that Goldman Sachs received $10 billion in TARP funds, and paid out $10 billion in bonuses.

Of course, the typical CNBC crew resorts to this news with shouts of ‘class warfare!,’ but I think there’s an interesting problem here.

I was under the impression that the TARP was to stabilize institutions whose failures were otherwise unavoidable and whose downfall would lead to massive jolts to the global economy.

Instead, it appears that Goldman Sachs faced a choice between going bust and perhaps losing those employees who could other jobs in this bad economy, and of course would face higher rates of employees quitting in the years ahead.

How “needed” are these TARP funds if the choice is not between bankruptcy and TARP, but between reduced marginal ability to retain staff and TARP?