Goldman Sachs Poised To Earn Record Profits

bloomberg.com:

July 10 (Bloomberg) -- Goldman Sachs Group Inc. is poised to report the largest profit since it set earnings records in 2007, marking the return of a business model that was the envy of Wall Street before the financial crisis devastated competitors and spurred a government bailout.

Read the whole story: bloomberg.com

Comments

[PhilipTaylor]

The REAL Main Street Economy has separated from the FAKED (due to hidden debts and artificially valued debts) Wall Street Economy and Wall Street can be torn down and rebuilt with government Help to return Banking to support of a NEW Wealth Building Economy based on REAL Manufacturing (Not Toxic Debt Manufacturing) ans REAL Exportable Services.

It makes no sense funding banks that refuse to fund Main Street's Productivity and Wealth Building!

These investment bankers have discovered that playing with paper investments that lay the risk off on others is far more appealing to funding REAL Investments that have Risks.

A1G was crucial to the SCAM the Wall Street Banks designed to remove risk from Investing:

Ask your self why would an insurance company issue insurance bets that a terminally ill patient will survive knowing they have at most two years to live? That is the C1A supported A1G business model.

It says Banks make me, A1G, the loser so you can manufacture SURE Bets that your Sure FAIL Derivatives will FAIL! A1G takes the loss and all the RISK, the Banks get the WINNING BETS, and A1G uses taxpayer money to PAY the Banks' Bets and make them WHOLE!

It is so REAL WORLD and simple yet the American People can not fathom the depth of the CR00KEDNESS of it.

[vagabondvet]

If only AIG had been allowed to fail and then in turn the (still) insolvent banks were allowed to fail, we'd be mostly through this crisis. Instead because the government and Fed have decided to pick who the winners and losers are, we're stuck with TARP'ed-up zombie banks that are using their ill-gotten money to make these record profits when the doors should have been shut a year ago.

[PhilipTaylor]

The Office of the Comptroller of the Currency says the following:

$88 Trillion in TOXIC Debts hidden "OFF-THE-BOOKS" at JPM

$30 Trillion in TOXIC Debts hidden "OFF-THE-BOOKS" at G0LDMAN

The FED and Treasury have provided $12.8 Trillion (one year's GDP) to Wall Street

So the two of them have $118 Trillion in Toxic Debts which is 9 years of US GDP Growth so we will be paying for this for many years, Probably over 50 and less than 200 Years!

[Tyler-Durden]

so glad the rich have been spared from their own economic catastrophe.

this sux.

[DamaskinosWasRight]

=

There are two Americas.

The one for the wealthy or well connected. Those people have rights.

The other one is for everybody else - where you have to deal with the real economy and gang stalker fascist protection rackets poison anybody they like while the government and police pretend to earn their pay.

=

[CarmanK]

The Obama administration is working to earn its pay and the police in many parts of the country are now beginning to get the support they need to do their jobs. Under the Bushies efficient and effective governance would have interfered with their goal of strengthening the economic aristocracy for years to come and minimizing the middle class which would offer the strongest resistance to such power plays. The Republicans said they could MORE for less, they did NOT; the Republicans said they could run a more efficient government, they did NOT-. The answer to government efficiencies was to privatize, which has clearly been shown to be a farce. American taxpyers got took under the Bushies.

[spinns17]

http://www.bing.com/reference/semhtml/Goldman_Sachs?fwd=1&qpvt=Goldman+Sachs&q=Goldman+Sachs

[DamaskinosWasRight]

So they only cleared a couple of billion?

What is the fuss?

[jsgaetano]

A few billion? Meh. Bush pocketted more than that just from Iraq.

[spinns17]

bush and paulson bailed them out ,and now there going to come out clean.and were paying for it .grrrrrrrrrrrr

[smchp]

How are 'we paying for it'? We are profiting from it yes but I don't see how we are paying for it? They paid or are paying tarp back with interest.

[vagabondvet]

"We" aren't profiting from anything; the government has injected $30+ billion in GS if you include the AIG bailouts.

[PathofTotality]

"One of the lessons of the crisis was that the biggest banks, including Goldman Sachs, are now seen by the U.S. government as “too big to fail,” ensuring that they’ll be rescued if their strategies backfire, Wilmarth said."

Out of the 15-20 quotes I could have taken from the article in bloomburg.com I chose this one so I can say....WTF!!??

"ensuring they will be rescued".................WTF AGAIN!!??

Granted Wirthman is a professor at George Washington University but is he serious or is this being stated with spite?

[Antifascist-08]

Reading this article is like reading a foreign language. No wonder these guys get away with murder. Nobody understands what is going on.

One thing is clear. There is no way they make this kind of money out of thin air without ripping someone off.

These people have had 30 years to develop and hone their skills. Government is clearly no match for them.

I'm sick of these people and everything they represent. We need people to tear this stuff down and translate it so we can understand it.

[dogisgreat]

Goldman-Sachs is the big winner of the crisis. Their chosen status was engineered by Henry Paulson, a stockholder and former chairman and CEO of the firm. AIG was saved to make good on Goldman's insurance claims for losses in mortgage derivatives, while their competition was sold off at firesale prices or allowed to fail (Lehmann Brothers.)

This is the corruption story of the century.

[jsijason]

Absolutely it is. This is the prime example of the Banking Class robbing the working class and small business owners - again.

But Hey - hopefully those profits will "Trickle Down" to us common folk, right?

The Pigs have to patronize our small businesses eventually...

[dogisgreat]

We've been folked.

[FoonTheElder]

What does our government do? It bails out the paper shufflers who caused the Great Recession.

Does government stop them from using the same fraudulent tactics? Of course not, after all they paid for the government and now they own it.

Nothing will change while big corporations and government continue to devalue labor in their race to the bottom of the wage scale. At the same time government commits trillions in corporate welfare to the fraudulent paper shufflers who destroyed the system in the first place.

The United States....a true kleptocracy!

[jsijason]

Not to mention debasing our currency at the same time. Make the money worth less AND pay us as minimally as possible, while taxing it as much as possible.

If you don't like it, become an investment banker. I hear the CIA is hiring...

[jozzie]

Not to get off topic too much, and not to get clobbered for all the right reasons, but I've been thinking in my usual anthropolical / psychological way, and I was wondering...

The over-the-top Michael Jackson cry-fest. What would have happened had he died in January, or just before obama'sinauguration -- or right after it? Would there have been a cry-fetst then? My answer: No.

I believe this cry-fest is really AfAms subconsciously knowing they've got nothing better lined up and they're eager to look back to a more recognizable past. The cry-fest is an indication of a LOSS of "Hope we can believe in."

Please don't bother posting that the cry-fest has nothing to do with AfAms orrace -- that it's cross-cultural. When alsharptonandjessejackson are hauled out as frontmen, there is an AfAm, political component. When sharpton references jacksonasa precursor toobama, well, there's your connection.

So I think the sub-conscience of obama'score public is not a happy camper right about now. And for the reasons in this story. It's not really all that hard to sense when something smells.

[Tyler-Durden]

excuse me, miss; your racism is showing

[jozzie]

Told you I'd get that reply.

My socio-political observations still stand. That I call it a cry-fest is my cultural taste showing, nothing else.

[curiousasheck]

Apparently Obama was elected for Depression Era entertainment. So far he's played Lincoln, Reagan, JFK and FDR . . who's next?

[wehrke]

These guys need to be regulated and fast before they take the entire country down.

[jsijason]

I agree. When you're as rich as these Pigs, they live on Earth, not IN the USA. Even if the US fell to third-world standards - they have the resources to live comfortably and provide their wildest dreams - anywhere on the planet.

Their actions make it obvious that they're not loyal to US citizens who they have fleeced for generations to reach these record levels of profit.

[lvdragonlady]

The GOP whines about 'capitalism' , 'free enterprise' and all of that but if you think about it, there is NO capitalism or free enterprise. There is only a hand full of crooked companies controlling EVERYTHING that happens in America.

[Ben6768]

Well said ! Government Sachs rules the country, along with the Health Insurance Mafia and a few others.
GOP = DEMS = corrupted stooges = useless

New political parties !!!

[Sparsh Parimoo]

Ron Paul 2012

[mzzanthrope]

cosign, sadly.

[FoonTheElder]

Unregulated or lightly regulated capitalism always becomes crony capitalism with a goal of monopolization of industries. This results in a minimum of competition and a great deal of power in the hands of a very few corporatists.

[vagabondvet]

Unregulated capitalism actually works the opposite way. Profit opportunities lead to more firms entering a market. The only way monopolies and oligopolies can be guaranteed is through government regulation prohibiting entry into markets. Crony capitalism is when the government uses rent-seeking regulations promoted by companies to pick market winners and losers. It shouldn't come as a shock to someone that the more an industry is regulated, the larger and more concentrated the market participants become. Profits disappear for firms as more regulations are added, since it requires more overhead administrative cost to comply with the regulations. These costs are smaller by virtue of economics of scale for larger firms than for smaller firms.

[CarmanK]

De-regulation led to the destruction of the US financial system and the disintegration of the middle class in America. De-regulation and targeted tax cuts put this country on a roller coaster driven by greed, deception, thievery and treachery. Even God knew that mankind could not function in chaos and set up the "rules" of conduct for life. Business is driven by people, those corporations who betrayed this country in time of war, they were greedy, arrogant people who operated behind the corporate shield. We need regulations, we need regulated untilities and this nation needs first and foremost to restore the middle class.

[jsijason]

Absolutely true.

[John Horner]

Every dollar the Goldmans of this work extract for themselves is a dollar which isn't available to pay actual working people. Financial firms deal mostly in a zero sum world. Every time someone "wins" at a trading play, someone else looses.

[lvdragonlady]

Still sc.ew.ing over America and her people.
Would be nice if there was a way we could boycott them and all of their activities.

[jefke]

And let's not forget that Goldman was the biggest single contributor to the Obama campaign.

[inorbit]

They probably also made huge contributions to McCain's campaign - hedging their bets.