Silly Sunday: We Support Goldman
August 9, 2009 by Miranda Marquit
Filed under Finance
On Friday, it was revealed that the unemployment rate actually fell to 9.4% . This was a rather pleasant surprise, since it had been expected to rise to 9.6%. The news is encouraging for most regular folks, since it indicates that things might be turning around for the economy . However nice that might be, however, it doesn’t quite address the fact that for some, things have been turning around much more rapidly.
Last month, businesses announced their earnings. Many of the big banks, led by Goldman Sachs , showed that they had recovered nicely — with the help of bailout funds . The bailout funds that went to help big banks (most of the trillions assigned for economic stimulus were done so under Bush II and went to big banks) did their work. And Jon Stewart did a great job last month of lambasting the system that helped Goldman rake in billions while many ordinary folks struggled.
It’s a kind of depressing way to look at the economy. However, if you practice prudence in your own personal finances , you won’t be as likely to need a bailout anyway. But it doesn’t make one feel better about the way things work out.
Unlike Mr. Stewart, I don’t begrudge Goldman Sachs a single penny that they’ve earned as long as they have done it legally and ethically. And aren’t basically the same jokers still in Congress or the exec branch who voted for all these bailouts, though now they have gotten all self-righteous about it (guess they should have read that legislation too)? Isn’t the point that we want the financial firms to earn their way out of the problem so that is why the Fed is keeping interest rates low and guaranteeing all types of assets on their books? Personally, I would have preferred a lot less government intervention and a few more high profile failures to act as a deterrent against future bad behavior, instead of distorting the natural outcome through government intervention.
Now, if I were a shareholder of Goldman, I would not be very happy with the level of bonuses being paid out, but what business is that of the governments if the Goldman bank is being run to satisfaction of the regulators and is adequately capitalized? They have paid back their TARP money at a 23% annualized return to the taxpayers, and like any good, politically connected business are taking advantage of the opportunities the marketplace offers.