In a former life, I served as a senior officer in a Fortune 500 Company, so I am definitely pro-business – large, medium or small. My pro-business attitude stops however with GS for many reasons. Their officers have infiltrated the highest levels of our government, to the unfair advantage of their business. As brokers for the Federal Reserve, they oftentimes know what the government will do in the markets before they do. This enables them to trade in advance of the Fed and profit without risk. In addition, they are absolved from any regulation for wrongdoing and therefore they can act as irresponsible as necessary.
GS and other big banks aren’t just pocketing the trillions we gave them to rescue the economy – they’re re-creating the conditions for another crash so they can accumulate more wealth.
The question everyone should be asking, as one bailout recipient after another posts massive profits — Goldman reported $13.4 billion in profits last year, after paying out that $16.2 billion in bonuses and compensation — is this: In an economy as horrible as ours, with every factory town between New York and Los Angeles looking like a ghost town, where in the hell did Wall Street’s eye-popping profits come from exactly? Did Goldman go from bailout city to $13.4 billion in the black because, as CEO Blankfein suggests, its “performance” was just that awesome? One year ago, they were minutes away from bankruptcy. How then are these crooks not only back on their feet again, but hauling in bonuses at the same rate they were during the bubble?
The answer to that question is basically twofold: They screwed the taxpayer, and they screwed their clients – without conscience. It takes financial sociopaths to act in such a manner.
Former Treasury Secretary Paulson (a former GS executive) ordered AIG’s bailout funds to pay 100% on the dollar to GS for billions of derivative assets that were essentially worth zero. Without those funds, GS would have been bankrupt. I plan on exposing their cons in the weeks ahead.