Last year, virtually the entire financial sector in the world went belly up. 12 months on, Goldman Sachs reports a quarterly profit in excess of $3bn. Yes 3 BILLION DOLLARS. In one quarter. Profit
Goldmans is the one bank everybody loves to hate. But even by their standards, this is something. The last two quarters have seen the highest quarterly profits in their 140 year history.
Now, the economics I have been taught in college was that there is a positive correlation between risk and reward. If they have made such profits, they must have taken wild risks. Just a year after coming within an inch of annihilation, only a complete lunatic would take such risks so as to make this mind boggling profit.
Or else, the economics I was taught is wrong. In the post meltdown world, there is easy money to be taken. Without taking undue risks. So the reward for bringing the world so close to an abyss, is to be able to make unbelievable money by just being around and counting the cash; and the rest of the economy, including the taxpayer, be damned.
Oh yeah, they will say they are just so damned good that they have “earned” this money. Maybe, but still …They are not the only ones printing the money. Some others are too; JP Morgan made a tad more than even Goldmans.
Either way, something is not right in this world.
Goldmans is the one bank everybody loves to hate. But even by their standards, this is something. The last two quarters have seen the highest quarterly profits in their 140 year history.
Now, the economics I have been taught in college was that there is a positive correlation between risk and reward. If they have made such profits, they must have taken wild risks. Just a year after coming within an inch of annihilation, only a complete lunatic would take such risks so as to make this mind boggling profit.
Or else, the economics I was taught is wrong. In the post meltdown world, there is easy money to be taken. Without taking undue risks. So the reward for bringing the world so close to an abyss, is to be able to make unbelievable money by just being around and counting the cash; and the rest of the economy, including the taxpayer, be damned.
Oh yeah, they will say they are just so damned good that they have “earned” this money. Maybe, but still …They are not the only ones printing the money. Some others are too; JP Morgan made a tad more than even Goldmans.
Either way, something is not right in this world.
