Government-Sachs

Dean Baker, co-director of the Center for Economic and Policy Research, and Rob Johnson, former chief economist, US Senate Banking Committee, discuss bailouts made to “too big to fail” companies.

How can you take that in and not be completely amazed at the audacious piracy of firms like Goldman-Sachs (a “great vampire squid” as Matt Taibbi so delightfully calls them) lining the pockets of their top executives at taxpayer expense from a bonus pool of funds roughly equivalent to the amount of money received as a “gift” via their AIG insurance policy (in effect, funded by the government) while simultaneously absorbing massive handouts from the Federal Reserve?

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13 Comments

Filed under U.S. Economy

13 responses to “Government-Sachs

  1. Ti-Guy

    “Goldman-Sachs is everywhere…”

    No kidding. Our own Mark Carney, Governor of the Bank of Canada, is a G0ldman-Sachs alumnus.

    An orgy of theft.

  2. The proliferation of their alumni is… disturbing, to say the least. Not hard to see how conspiracy theorists might well think the government is little more than an ATM for these folks.

  3. CWTF

    An orgy of theft.
    It literally is.

    I don’t trust Mark Carney and wonder who he had to blow to get the job.

  4. foottothefire

    Carney did an about face in early summer. From BoC governor to Tory image booster, the man has been feeding the system BS since.
    Europe has put the squeeze on US banking/government to either get in line and regulate or face getting cut loose. The US is operating on printed wealth and pretend-a-value now the world is closing in. Where they’ve threatened their way out of trouble in the past nowadays they don’t have options (that we know of).
    GS is likely to go, so stay tuned (and don’t buy real estate; that’s #1 on the ‘things are gettin’ swell again”, myth list).

  5. I’m very dubious about the whole “green shoots” thing Bernanke and some others are promoting as it seems for every positive, hopeful indicator there are contradictory signs of impending gloom suggesting otherwise.

    My bet is that the economy is going to be in the tank for another couple of years. Or be stuck the doldrums spinning its wheels at minimal growth levels, at least. But hey, in my position it’s totally academic.

    As for buying a house, that too is virtually impossible here where $250,000 will get you an abused, run-down shack in desperate need of repair and anything decent goes for half a million or more. I’m actually quite surprised that the housing market here hasn’t collapsed, or for that matter that the economy as a whole remains fairly robust — but then it mystifies me somewhat as to what keeps things going here. I see so much wealth and so little actual productivity that it makes no sense.

  6. Ti-Guy

    I don’t trust Mark Carney and wonder who he had to blow to get the job.

    Meh. I think he’s got the easiest job of any central bank chief out there.

    I just can’t stand the financial economy anymore…it’s just too divorced from the real economy. Carney’s had to use psychology in the last while to talk down the Canadian dollar.

    It’s really not supposed to work that way.

  7. Navvy

    Haha, I wonder the exact same thing when I go out to Vancouver. My friend lives in Squamish, where people plop down a half million on these modern communities in the middle of nowhere, and I still haven’t gotten him to tell me what they do exactly. I have yet to find someone in Vancouver that has actually does something. Lawyer doesn’t count.

  8. LOL I was just talking to my best friend about this subject — in connection with attempting to find a place to live, actually… which is an absurdity unto its own when it comes to Victoria — and he’s equally puzzled by the disconnect.

    What on earth are all these people really doing for a living? There’s an amazing kind of circular economic logic going on that can’t possibly be sustainable if there’s no productive base to support the whole thing… it’s really like one giant Ponzi scheme. We’ve got a self-serving, service-based supra-structure that’s built on nothing at all.

    This is something that’s vexed me for 30 years and I’ve been unable to figure it out.

  9. I believe that Kunster’s “Long Emergency” has arrived and that any growth is going to based on shrilling the market rather than increases in the number of widgets made or mined from the ground. But given that the majority of western economies are based on “services” we can shrill for a while.

    BTW, the IEA has pulled their “peak oil” forecast even closer. We could have real economic growth if there was a recognition of the problem and direction to converting to a post oil world from governments, but Harper is in denial and Obama is bogged down in the U.S. bureaucracy.

    See: Guardian UK:
    A post-oil world gets less sci-fi by the day: Dwindling supplies and no plan B – are we heading for Mad Max scenario?

  10. Navvy

    The area reminds me of Ireland, but not quite as bad. I lived in Ireland for a number of years. I never met anyone that had a real job. Sorry, I never met an IRISH person who had a real job. The Polish and Russians were happy to build things and fix toilets, but everyone in Ireland is either in Real Estate or the tourism industry (I fell into the latter camp). Everyone else was falling over themselves to buy some shit hole sheep farm on the side of a hill in fucking Donegal and then try to flip it for a million dollar profit. Talking to friends back there, those times have pretty much come to an end.

  11. I’m coming to the conclusion that the endless “growth” model when it comes to economics makes no more sense than does perpetual motion in physics.

  12. Dan — Oh, never mind all that nonsense… Hasn’t Jerome Corsi told us that there’s an endless supply abiotic oil that will be provided simply from the planet spinning around and whirling it up at our pleasure?

  13. Oh yeah. The creation “science” of commodities.

    I am always amazed at our capacity for self-delusion.

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