Goodbye recession

It might have seemed in the last couple of days that the big issue over in this small corner of the world has been the Toad vs Whale Oil feud.  Yawn.

But, there is other news that has caught our attention here at g.blog; the recession seems to be over, at least for wealthy Goldman Sachs bankers who needed to be bailed out by the US government less than a year ago.  They paid back their US$10 billion bail out and also posted a US$3.44 billion dollars in quarterly profit. This from the New York Times:

Even on Wall Street, the land of six- and seven-figure incomes, jaws dropped at the news Tuesday: After all that federal aid, a resurgent Goldman Sachs is on course to distribute bonuses that could rival the record paydays of the heady bull-market years.Goldman posted the richest quarterly profit in its 140-year history and, to the envy of its rivals, announced it had earmarked $11.4 billion so far this year to compensate its workers.

At that rate, Goldman workers could, on average, earn roughly $770,000 each this year — or nearly what they did at the height of the boom.

Senior Goldman executives and bankers would be paid considerably more. Only three years ago, Goldman paid more than 50 employees above $20 million each. In 2007, CEO Lloyd Blankfein collected one of the biggest bonuses in corporate history.

Meanwhile the reession that these bankers helped create has left over 6.5 million people jobless since December 2008.  Nearly half a million Americans lost their job in June alone and the unemployment rate, currently 9.5 percent, is still climbing.  That doesn’t include the tens of millions of workers who have lost and are about to lose their jobs in the rest of the world, New Zealand included.

So it seems it’s back onto the financial roundabout for everyone except all those who lost their job or are about to lose it.  Is anyone worried that collectively we may not have learnt the lesson embedded in all of this?

6 thoughts on “Goodbye recession

  1. Goldman Sachs were not much involved in sub-prime lending or derivatives trading. These bankers did not create the crisis.

  2. “Meanwhile the reession that these bankers helped create has left over 6.5 million people jobless since December 2008.” – a) how did they help to create it, and why?, and b) who else, then participated (since you say GS only helped)?

    It seems not fair to focus on just one influencer whilst ignoring the rest?…lets get a clear, balanced picture then, should we? Should you touch on govt promotion of cheap loans as well, as a Santa’s helper? Or will this be conveniently ignored. I wonder.

  3. As I know ISP often stands for “Internet Service Provider”. Not sure what I/S is referring to though w.r.t Goldman Sachs. Maybe he meant “ISL” when linking to the objective Daily Kos…?

  4. Basically they provide the network backbone. Which means their routers see every trade. The central allegation seems to be that they abusing this power to monitor what their competitors were doing, delaying those trades and rushing through their own to take advantage of the subsequent change in price. Apparently this was making them US$100 million a day.

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