tag:blogger.com,1999:blog-4812039228646601640.post4316798791544716405..comments2023-06-01T08:12:44.757-05:00Comments on Ward on Words: God Bless Goldman!Ward on Wordshttp://www.blogger.com/profile/16395634759293431481noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-4812039228646601640.post-90758551096857735012009-07-14T14:49:22.923-05:002009-07-14T14:49:22.923-05:00The crisis began when the markets started to tank....The crisis began when the markets started to tank. It became dangerous to people in Washington when the news shows started posting a ticker chyron during politicians' speeches. It became a matter of national security when Republicans began taking about an "Obama Recession" in February/March.<br /><br />The government's reaction has been to shovel incredible amounts of money into the markets, talk up the markets (amazingly, most people actually believe that "confidence" is an independent virtue), and eliminate many of the accounting rules that would show weakness (most importantly, mark to market).<br /><br />Not surprisingly, with a tide of money coursing through its industry and almost all of its competitors either gone (Lehman, parts of AIGFP) or absorbed by commercial banks with their own challenges (Bear, Merrill), Goldman is minting money. Why wouldn't it; bid/offer spreads are the highest they have been since deregulation, market manipulation that results in upward moves is de facto legal...<br /><br />$700bn could as well have been deployed building high-speed rail lines or an energy transmission grid. But that would have left the market languishing through the 2010 elections, and it is this possibility that scares official Washington above all else.Taunterhttp://tauntermedia.comnoreply@blogger.comtag:blogger.com,1999:blog-4812039228646601640.post-63431494443630641022009-07-14T11:29:39.092-05:002009-07-14T11:29:39.092-05:00It seems crazy. Didn't that government "i...It seems crazy. Didn't that government "investment" amount to something like 13 billion?<br /><br />Not to mention that they have so many friends in high places now. This really doesn't come as much of a surprise.<br /><br />My advice to the average joe at this point is to get out of debt asap. The government won't be bailing you out.Anonymousnoreply@blogger.com