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Anger at Goldman Sachs?

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Is there any resentment simmering out in the public over Wall Street's return to big earnings and big bonuses? Bill O'Reilly, the Fox News commentator, likened Goldman Sachs bankers to pigs during a segment on his TV show. "You've got to make an example of the big boy," he said. "And this is the big boy." Jon Stewart said this: "Goldman Sachs makes $3.4 billion in profit from April to June. I guess the bailouts are working, for Goldman Sachs."

So there you have it: Criticism from the right and the left. But is this really a populist issue? I'm not so sure. It may be that most people are glad that the big banks are no longer draining taxpayer funds. But there's still plenty of time for some big banks to really tank. The PR disaster and public anger will come if the bailouts of some big banks appear to be failing. There is time for that still.

For more:
- here's a New York Times article on class resentment

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The problem with the bailout approach is that the costs of the bailout, most particularly the financial costs of the debt obligation accepted by the federal Congress, are bourne by the taxpayer (average compensation still less than $ 50,000 per - while the benefits are restricted to very narrow numbers of experts in the financial sector. While the current media dialogue will (legitimately) blame Goldman for gaming the system, the key question is why the Congress thinks a trillion dollar deficits should be shared among all taxpayers, while profits from bailouts should go only to owners and employees?

I am not sure this is mere populism. It might have to do with fraud. I think it is no longer conspiratorial to wonder that the likes of Goldman Sachs caused this, and also fomented the likes of inept people like Paulson and Geithner, and while 11 - 12% of the country and the most of the rest of us suffer, gloat about their profits. If Goldman is able to make something (a huge something) out of nothing, someone needs to investigate - only it appears Goldman has taken over the world.

If there is even a shred of "clever" accounting in GS' 2Q results, they need to be split up, disbanded or something. This is really getting out of hand - populism aside, anyone with a shred of commonsense and a non-GS shareholder could tell...

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