Tuesday, July 14, 2009

There Goes The Media Again: Manufactued "Outrage" At Goldman

The top story on ABC's Good Morning America today was about how Goldman Sachs had recovered from the banking crisis and was expected to report $2 Billion in profit for the 2nd Quarter. Hooray! Right? No?

Oh, I'm sorry, the gist of the story was to throw around terms like "outrage", "anger", and imply that we should all be collectively upset, or beyond upset, like break out the pitch forks sort of rage! The only rage I felt was against ABC for manufacturing such bullshit. Goldman Sachs, after all, is a great American company that has is critical to the functioning of our financial and capital markets. Here is a company with a remarkable track record, having recorded only one Quarterly loss (last fall) since going public. Yes, they took $10 Billion from the government (which they have since repaid), but nobody considers the context. Nobody seems to remember that they took this money because the Treasury more or less forced it on them when other banks were at risk of failure. The idea was that all the major banks would take money so that no bank would be singled out and such action would prevent a run on the most troubled institution (s). Goldman was a team player in the interest of the national and world economy. Now, thankfully, the immediate crisis has passed, and one of our great institutions is earning money yet again. This, and the resilience of capitalism should be celebrated, not berated. We should be happy that we are seeing signs of recovery, not "outraged". Chris Cuomo may ask "where is our cut"? Our cut is that we are not in another Great Depression. Take that to the bank.

1 comment:

  1. Hey Andy, you might want to read this article from rolling stone:


    I'm not against goldman earning money, but it would be nice if they had a few morals while they were at it.......

    If the link doesn't work it's because you're blocking cut-n-paste and my typing sucks, just google the great american bubble machine and you will find it....

    remember who owns the Federal Reserve as well...