Monday, April 27, 2009

Goldman Sachs Boosts Risk-Taking at Fastest Pace on Wall Street



"The reports of my death are greatly exaggerated"
-Mark Twain


You gotta kill the beast.

The great failing of policymakers in the Obama Administration (and there have been many failures) was the decision to sustain the financial sector in its present form, where intermediaries like Goldman Sachs take huge, risky bets for outsized returns while adding nothing of value to the real economy.

This has already been shown to inject unecessary risk and instability to the entire financial system, while siphoning off brainpower that could be used in productive work.

For some reason, Obama has filled his Administration with Wall Street bankers and financial types who have slyly crafted policy to sustain and perhaps even enhance the power of their domain over the rest of the productive economy.

At the same time the commercial banking system, which itself is a construct of the Federal Government, is being largely deconstructed. Major chunks of the banking sector's assets (which, at least obliquely, are the property of the public) are being sold off to some of the very speculators who targeted these institutions for demise, with taxpayer guarantees against losses to boot!

For a president who, purportedly, ran for office as a representative of the middle class and the working man, this seems incomprehensible.

If you are not a member of the Wall Street clique, or feel left out and ignored by the president and his policy team, you should rise up and let your sentiments be known.

Barack Obama is a brilliant guy with huge potential, but I am starting to think that he has a character flaw that will do him in. It is his need for validation, which causes him to surround himself with people who look impressive from a distance, but who come from the same, ruling class that zealously guards the status quo.

4 comments:

googleheim said...

If there is no clean up, then nothing will change.

The stimulus or TARP only had 10% allocated to small business. What a measley joke.

Mike Norman said...

Yes, nothing will change. Even worse, Wall Street's grip over policy will become even more like a choke hold, making it much harder to remove.

jimbo said...

Maybe we should follow Cato the Elder and start ending ever note with "Goldmanus delanda est!"

Mike Norman said...

Jimbo,

I like that!