This interview with Max Keiser is fantastic. Keiser doesn’t hold back with regard to how he views Goldman Sachs as “scum” that has “co-opted” the U.S. government. He even goes on to say they are financial terrorists that effectively held the U.S. hostage by claiming that the world would end if they weren’t bailed out (essentially, Keiser is equating the likes of Hank Paulson, who was head of the treasury when the massive bailout was orchestrated and is an ex-Goldman CEO was basically working for Goldman in his role at the Treasury). And yeah, Max is an outspoken guy, but I have to wonder how many others out there on Wall Street are thinking something very similar but keeping their mouths shut (out of fear of retribution or whatever).
Regardless, you have to wonder: something is extremely wrong when an investment bank squeaked out of implosion a year ago thanks to a massive government bailout only to be the last man standing to reap the benefits of underwriting tons of equity as a quasi-bank-quasi-hedge-fund-with-supreme-access-to-the-U.S.-government and then makes enough money to pay all of their employees $300K+ in salaries/bonuses.
If that isn’t confusing, if that doesn’t make you scratch your head and say, “huh?” then just start looking around. There are a few people like Max, Barry Ritholtz, and, of course, Matt Taibbi (See his RollingStone article if you haven’t already) who are spreading the word.
And this isn’t about envy over a company being profitable. It’s about a company that is succeeding because they have massive influence in D.C. and with the Fed and Treasury. That’s not right. It’s not capitalism. It’s not a free market.
Ok that’s enough from me.