Category Archives: Economy

Goldman Sachs Is Being Used as a Whipping Boy

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Today, I was reading a post by Jeremy Seigel about Goldman Sachs, and most of his viewpoints reflect most of my own (see Crucifying Goldman Sachs, Start of The Witch Hunts).  I have to note that I don’t always agree with the famous author (who wrote “Stocks for the Long Run“), but on this topic, I mostly agree with Dr. Seigel.  Please I encourage you to read Dr. Seigel’s article to get the lowdown and a very logical and realistic explanation of events.

I have a feeling that as the SEC and US government digs deeper, they are going to realize that among the banking bunch, Goldman is one of the good guys!  I guess they couldn’t attack a company that had greater involvement that caused the issue because they are still in a fragile state?  So I guess the logic is attack one of the few companies that made the correct moves…

I think it’s funny, Government is focused on punitive actions instead of preventative actions.  Not to mention the continual job drain that is occurring.  Why don’t they focus on the problems with Americans continually losing jobs to offshore?  We already lost a huge chuck of our manufacturing business overseas…  Isn’t that a great example of losing jobs to cheaper foreign labor?  Why let the service industry go overseas too?

I know these last few post at www.moneyreasons.com haven’t been totally personal finance, but if we don’t have jobs and companies to supply jobs…  Well then, we really don’t need to worry about money, because nobody will have money…

-MR

Why Government Officials Should Think Things Through

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I just read that Los Angeles California decided to boycott Arizona Business.  This is a move that I would not consider taking if I were them in a normal sense, but even more so considering that fact that LA has a dependency on them.  This is where you hear that old saying “Don’t bite the hand that feeds you”.  In many ways, I think some people are just to sensitive!

You see, Los Angeles is depending on Arizona for 25% of their electricity.  Arizona could quite easily turn off the power so to speak, and why not.  If L.A. is planning on sabotaging the Arizona economy, why shouldn’t Arizona do the same.

Where you agree or disagree with Arizona, when you throw out threats, you really need to consider the consequences.  This is why I think, in general, most of the government officials are short-sited (especially in LA)!

Really most people are like the government officials in L.A.  They forget the relationships that they have and do stupid things to show off.

Another great example is France.  We keep bring up the fact that we helped France during the last World Wars, and act like they owe us.  But really the French were instrumental in us becoming a free nation.  I know that it’s not that simple, but we should still be at least a little bit grateful!

Crucifying Goldman Sachs, Start of The Witch Hunts

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Senate Witch Hunt

 

I’m watching the Goldman Sachs meeting by a subcommittee of the senate, and it looks like the Witch Hunt is abound.  Who’s next Chase, BAC, Citi, …? 

Some of the senators just look plain ignorant (especially Senator Levin)…  I don’t see why they were speaking if they don’t know what they are asking about.  I don’t think they have any idea what a market maker is, based on some of their questions and responses.  

Mr. Viniar make the senate look pretty bad!  The more he talks the more the senate looks like they are trying to pin something on Goldman that doesn’t exist. One senator kept going on and on about ethics, almost like he was hoping one of the Goldmans executives would break down and cry, it was almost funny.  Senator Levin went on about Goldman taking 2 billion dollars from the tax payer, but really the gov. gave the money to AIG, and AIG paid back a loan that they owed Goldman…  Levin kept going on that Goldman took taxpayer money, over and over, and Goldman CEO Blankein kept explaining that AIG payed the load, and if AIG didn’t, Goldman was insured by an insurer and wouldn’t have needed the money anyway.  It was a very dumb argument that Senator Levin kept saying over and over…  I now have no respect for Levin and think he isn’t the brightest of senators. 

While I think Goldman didn’t really do anything wrong, I think some of the industry practices in their market need to be changed.  But that’s not their fault, that’s the lawmakers fault sort of.  Let’s be honest, the lawmakers didn’t understand the complex financial instruments that are out there!  But I’m pretty sure Goldman did not try to cause the “Great Recession“. 

What really kills me is that the government is pouring over emails, reading emails send by Goldman employees that were being enthusiastic about their job, or offering their feelings about certain investments. 

What also kills me is the audience members dress in old style jail uniforms, what a joke.  I’m absolutely positive they don’t have a clue about the financial markets, but they sure do act like they do!  What losers… 

Well, after hearing Blankein, I’m firmly in the Goldman camp!  I especially agree with him in his statement that some of the limitations that the government are proposing will damage the US financial system, and make them so the foreign bank will have an competitive edge! 

In general, the more I see the senate and government in action, the more I realize than any of us could do just as good of a job, if not better! 

-MR

Why Do Politicians Go Too Far Left or Too Far Right?

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Where are the politicians for the middle classes?  To me it seems like the Politicians are always too polar.  Either they are liberal (Left) which is bad or they are too Conservative (Right) which is bad.

McCain wasn’t beat by Obama, McCain was beat my McCain and his bad debating style, choice for a vice president, and his policies that leaned too far to the right, these policies don’t represent the majority of the average American wants and needs…  Why do I make this claim?  Because I’m primarily a moderate (although I have to admit, I do like the blue dog democrats), but I drank the Obama kool-aid and voted for him. 

Now I realize that “Change” doesn’t mean a positive change for us middle class folk.  Now I understand that Change means that we aren’t going to be the great country we use to be, instead Change may mean we are no longer going to be a superpower in the world order.  It means that America may now be on the descent in the world order. 

The Democrats’ “Change” means going back to party policies that have failed in the past and forcing them on the American citizens.  “Change” means destroying any business advantage that American might have had.  Yes, Change isn’t always for the best, sometimes Change means “opps we messed up”.

And the Republican Party wasn’t beat by the democrats, they were beat again by their own choices that were to far to the right.

When the parties choose policies that are either too far left or right, they no longer represent the middle classes (or over 80% of Americans)!  Yes, November should be a landslide for the Republican with them gaining control of the government…  I just hope they don’t go too far to the right, as the democrats have gone too far to the left.

Am I being to pessimistic?  Perhaps so, and I have to say, I’m sorry for going so political today, but I think that the government should represent the people and their opinions.  If they don’t then how can we call our system a democracy?  And this should be the way for both political parties!