July 16, 2009
Goldman Sachs reported quarterly earnings of $11.4 billion. They got $12.9 billion from AIG that was from the taxpayers that they don’t have to pay back to the taxpayers. So Goldman’s “profits” is no profit at all, but a $1.4 billion loose. And that’s not the only way they were able to show their false profits.
So Matt Taibbi is right; “this is not a free-market earnings but an almost pure state subsidy”. But nobody wants to hear that. Because the truth just wouldn’t support the objective — pointing to the bailout and saying ‘see, it worked’. The same way Henry Paulson lied to us that as soon as the banks got our money they would rescue the economy. As Tabbi said about the Goldman “profits”: This is the final evidence that the bailouts were a political decision to use the power of the state to redirect society’s resources upward, on a grand scale.
I reported here, here, and here that Goldman Sachs, as well as the other TARP recipients, couldn’t have paid back a single dime of the TARP money without the back door money Federal Reserve Chairman Ben Bernanke was handing out to them and the Federal Depositors Insurance Corporation was spotting them in guarantee’s for loans they got from other places. Matt Taibbi is just one of hundreds that is pointing out the same facts. He says “one of the most hilarious lies that has been spread about Goldman of late is that, since it repaid its TARP money, it’s now free and clear of any obligation to the government – as if that was the only handout Goldman got in the last year. Goldman last year made your average AFDC mom on food stamps look like an entrepreneur”.
Go to Taibbi’s article referenced above. He gives a very good account of how “Government Sachs” not only survived, but made their “profits”.
Other good articles on “Government Sachs”.
Never underestimate the difficulty of changing false beliefs [with] facts.
Economist Henry Rosovsky