Lloyd Blankfein, Chairman and CEO of Goldman Sachs (
GS), gives an interview at Bobby Van's Grill on October 16 in New York City. Washington will seek to strike a delicate balance toward massive bonuses expected to be paid out by Wall Street, experts said.
(AFP/Getty Images/File/Jemal Countess)
So...HOW BAD OFF IS THE ECONOMY CURRENTLY? HERE'S A HUMOROUS AND THEN A SERIOUS GROUP OF ANSWERS.
The economy is so bad that I got a pre-declined credit card in the mail.
It's so bad, I ordered a burger at McDonnell's and the kid behind the counter asked, "Can you afford fries with that?"
The economy is so bad that CEO's are now playing miniature golf.
The economy is so bad if the bank returns your check marked "Insufficient Funds," you call them and ask if they meant you or them.
The economy is so bad Hot Wheels and Matchbox stocks are trading higher than GM.
The economy is so bad McDonnell's is selling the 1/4 ouncer.
The economy is so bad parents in Beverly Hills fired their nannies and learned their children's names.
The economy is so bad a truckload of Americans was caught sneaking into Mexico .
The economy is so bad Dick Cheney took his stockbroker hunting.
The economy is so bad Motel Six won't leave the light on anymore.
The economy is so bad the Mafia is laying off judges.
The economy is so bad Exxon-Mobil laid off 25 Congressmen.
And finally...Congress says they are looking into this Bernard Madoff scandal.
Oh Great! The guy who made $50 Billion disappear is being investigated by the people who made $1.5 Trillion disappear!
Charts shows quarterly earnings for Bank of America, Citigroup, JPMorgan Chase & Co. and Goldman Sachs Group Inc.
since the third quarter of last year.
Now, compliments of MSNBC and The Huffington Post, let's get a serious answer to the question; How did Goldman Sachs (NYSE:
GS) create so much profit during this anemic, sick economy? Just click on the link below for the answers.
Dylan Ratigan attempted to demonstrate the way Goldman Sachs-- rescued from collapse a year ago by taxpayers -- managed to pull off the magic trick of making themselves $3 billion dollars in three months. Unfortunately, in-studio technical problems with uncooperative teleprompters conspired to make the segment unclear.
That's okay, though, because Ratigan and Alex Witt returned to the studio later that afternoon to reshoot the segment. We are pleased to bring it to you as its authors intended it to be seen.
As Ratigan offered in an earlier blog post on the segment:
The question is not why did we bail out the banks.
The question is why did we give the banks billions of our money so they could then buy assets by the trillions with our money and they keep the profits?
The answer is Henry Paulson, former Goldman Sachs CEO who ran the US Treasury, and Tim Geithner, current Treasury Secretary who at the time ran the New York Federal Reserve, willingly delivered Goldman Sachs the $70 Billion -- with no strings attached.
PREVIOUSLY, on the HUFFINGTON POST:
Goldman Sachs Black Magic, Here's How They Did It
We are so thankful to the Huffington Post for having the courage of their convictions to go outside of the mainstream media and to "tell it like it is". These facts are more reasons why we need to learn more about why the stock market goes and up and down and "who and what" makes for "corrections, panics and inexplicable bear-market rallies".
http://www.huffingtonpost.com/
Then today, Sunday Oct.18th, the White House encourages all of us who are die-hard stock investors to realize that half the stimulus money hasn't even been spent yet.
In appearances on the Sunday news programs, White House advisers criticized those Wall Street firms that are paying huge amounts in compensation and benefits after accepting taxpayer assistance.
Goldman Sachs, for example, has said it has set aside $16.7 billion for compensation so far this year, more than $500,000 per employee. Citigroup is paying $5.3 billion in bonuses to its employees and Bank of America $3.3 billion.
The answers to why the Big Banks are able to be so generous in their "compensation" and why
GS and
JPM can claim to have made so much money in the 3rd quarter might help us to understand why the current stock market rally has lasted so long.
On the other hand, there are rumors floating on Wall Street that Mega-Company GE (NYSE:
GE) is heading for financial insolvency or is there already. Is that going to set the stage for the next meaningful stock correction straight ahead?
On the other hand, in spite of the DJIA breaking the 10,000 level, we see investors selling into market strength and not acting "irrationally exuberant". Does this mean there is more money on the sidelines to drive market indices higher before the next correction? That wouldn't surprise me at all.
Since tomorrow, Oct. 19th, is the anniversary of the worst one-day drop in the stock market indices in history (in 1987), these are all relevant and timely questions.
DISCLOSURE: I'm currently long Citigroup (NYSE:C)
