Friday, October 16, 2009

Dylan Ratigan on Goldman's Q3 profits

Dylan Ratigan of MSNBC has a column on HuffPo that gives a fairly simple and high level explanation on how Goldman Sachs made $3 billion in profits last quarter:

we the taxpayer gave Goldman Sachs the following:

10 Billion in TARP
11 Billion from the Fed
30 Billion from the FDIC
13 Billion from AIG

He continues...

Goldman at the apex of the crisis is delivered this money -- which they then use to borrow against at $20 or $30 for every $1. Which at 30x equals $2.1 trillion in available capital.

As one of the only banks in the world with money at the time, Goldman Sachs was able to buy billions in distressed assets around the world at record low prices -- only to watch $23.7 trillion in US taxpayer money be deployed during the past year to re-inflate the asset's values that Goldman had purchased with our tax money.

I thank the failed economic team of Obama... I mean Bush! Geithner, Bernanke and Paulson... such great guys handing over the American economy to their friends at Goldman!

And since I'm discussing the hope and change of the current administration's economic policies... HuffPo also reported today that the SEC filled one of its key enforcement roles.

And where did he come from?

Come on... guess!

I know this is a tough one...

Adam Storch comes to the SECs enforcement division from none other than...

Goldman Sachs!

Tim White

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