Goldman played the American people and continues to play the American people. It has alums placed all through the US government and in the EU. The reason sorry old Greece got into the European Union was because of some Goldman sleight of hand. So to some degree that particular corner of the ongoing financial crisis is Goldman’s fault.
Goldman Sachs should be no more. In 2008 it should have died. Kaput. Done. But instead Bush Treasury Secretary Hank Paulson, a former Goldman CEO, made sure that the firm which was leveraged to insane levels lived. Why did it live? Because it was connected.
The author of the attached article Ike Brannon is wrong on an important point, though he is justified in his general disgust with the firm. He argues that the Fed shouldn’t have any non “economists” making any decisions. He’s wrong, the Fed should definitely have some non “economists” making many of the decisions.
Brannon is absolutely right however to criticize the “antisemite” spin coming from the Dallas Fed. To be against Goldman and this new appointment is not to be against Jewish people, it is to be against crony capitalism.