I will note this again because it should be noted again and again. Goldman Sachs should be dead. Door nail. Kaput. Finito. Gone. A piece of history. Expired.
But Goldman Sachs, Government Sachs, lives because it got bailed out by you the taxpayer. You’re the one who felt the brunt of the Great Recession. You who lost your home. You who moved in with the kids to make ends meet. You who went on food stamps quietly in desperation. You who had the heat turned off. You who saw the middle class slip away, away, away. You kept Goldman alive, largely because their former CEO Hank Paulson ran the US Treasury when Wall Street teetered on the open pits of hell.
Goldman should have fallen into the firey nether. A few of the other big banks would have followed the firm. But you know what wouldn’t have died? America.
Had we let capitalism actually work, had the crony barons actually paid for their breathtakingly stupid leveraged positions, we’d have probably recovered more quickly. Additionally, we’d now likely have a more robust (more) capitalist system than we had prior to 2008. The muck would have been cleared. Instead we must now deal with the crony system of legalized graft which has grown exponentially since the Crash.
And now having been saved by you the taxpayer, the guy who likely couldn’t get past the reception desk at Goldman headquarters, Goldman has continued its crony quest.
(From The Nation)
Once Kashkari takes his seat on January 1, 2016, one-third of the 12 Federal Reserve Banks will be led by someone with strong ties to Goldman Sachs. In addition to Kashkari and his two fellow (and they are all fellow) recent appointees, the New York Fed’s president, William Dudley, is also a Goldman Sachs alumnus. He served as the bank’s chief economist for ten years as well as partner and managing director.
The presidents of the 12 Fed Banks help carry out the Fed’s bank supervision responsibilities, so the revolving door between Goldman Sachs and key Fed posts should alarm us. But it is also hard to see how the Fed’s recent selection of three Goldman Sachs bankers conforms with the Federal Reserve Act requirement that Fed leaders “represent the public,” with “due consideration” given to a variety of economic backgrounds and perspectives.
Sadly The Nation’s concern strikes us as quaint, at best. They don’t like that the Fed system doesn’t spread the spoils of the system to the people they like. (The cronies they like.) This is the problem which plagues statist critics of the Fed. There is the tendency to want to believe that if the Fed was just run by the right people it would be a valuable tool for social engineering. They can’t bring themselves to call for an end to the bank, because a central bank is central to “progressive-statism.” And this is how the central banks always co-opt or simply dispose of their lefty critics.
Get real. End the Fed. Don’t be a wimp about it. Have some pride.