Tuesday, July 16, 2013

Goldman Sachs Doubles Their Profit....Thanks Uncle Sam!

http://dealbook.nytimes.com/2013/07/16/quarterly-profit-doubles-at-goldman-sachs/

Good news…. Goldman Sachs revenue is up 30% and their profit is up 50%. Isn’t that awesome. The government pumps 80 Billion a month into propping up Wall Street and Goldman Sachs is all too happy to fill their bank accounts. Then they boast about how well they are doing.

They tend to leave out the part about them ripping off their own clients.

http://www.usatoday.com/story/money/business/2013/07/15/ex-goldman-sachs-trader-faces-ny-sec-civil-trial/2517111/

With Goldman doubling their profit you can understand why Wall Street has anxiety at the mere mention the Fed might shut off the Government tap.

It is funny how in the worst economy since the Great Depression, these corporations still manage to make record profits.

Not just profit…… but more profit then has ever been made in history. And they do it all while everyone else struggles.

Think about it………Start at Adam and Eve and come forward (through history) and at no time have Corporations made more profit then in the last 5 years.

Yes It maybe a recession for you and me but this is the gravy train for them. Choo Choo.

http://money.cnn.com/2012/12/03/news/economy/record-corporate-profits/index.html

Then when they are done making record profits they have the audacity to go to Washington and DEMAND lower tax rates. They insist they can’t compete in the current US tax structure. They proclaim this while piles and piles of money sit (stacked nicely) in their accounts (and unemployment remains above 7%).

http://www.cnbc.com/id/49519419

When they are not complaining about taxes they are complaining about regulations. They have no problem taking the free government money…. but they don’t want any Government restrictions. Just hand over the money and go away.

When they do get what they want (and it blows up in their face) they are never shy about putting their hand back out .
The city of Detroit is about to go bankrupt. Is the Fed offering them any money? Nope!

http://www.reuters.com/article/2013/06/26/us-usa-detroit-analysts-bankrupt-idUSBRE95P1JB20130626

Detroit is bankrupt because the auto industry sent the US jobs to Mexico and China. That dried up the tax base. It also caused the same automakers (who created the unemployment problem) to fall into bankruptcy.

Turns out unemployed Americans didn’t buy $30,000 Oldsmobile’s. So again the government was only too happy to come bail them out.

The workers got a pink slip and a stroll to the exit. This was followed by a kick in the a**.

After the US Auto Industry laid off tens of thousands of workers (and went bankrupt) they then blamed the workers. The workers were too greedy.

When they employed hundreds of thousands of workers General Motors was the most successful company on the planet. When they got rid of most of them the result was disaster. Yet it was the workers fault.

So the remaining workers took less and now GM is doing great again. Great because bankruptcy wiped out all the debt and the workers took it on the chin. Wouldn’t everyone be doing better if they got to delete all their debt?

Corporations will tell you Capitalism is all about survival of the fittest. If you screw up then you go extinct. That is the deal. That is until THEY screw up and then they want a different deal.

Here is the Mansion of the CEO of Goldman Sachs. It was bought last year for 32 Million bucks. It is not the only one he owns.

http://www.dailymail.co.uk/news/article-2244185/Inside-Goldman-Sachs-CEO-Lloyd-Blankfeins-32-5-million-Hamptons-estate.html

This is the kind of thing you get to buy when the government won’t let you fail. Isn’t it great. I am sure Lloyd would be happy to lecture you on the problems with Washington spending. Even though that same spending is what buys his Champaign wishes and Caviar Dreams.

So the Government pumps this money into Wall Street, except the US Government is broke. So that money gets tacked onto the US Debt (which is currently 16 Trillion dollars). Eventually the debt becomes so unbearable our leaders will tell us we need to cut Social Security and Medicare. Can’t afford those things.

Well If we can’t afford entitlements when corporate profits are breaking records then when exactly will we be able to?

The government can afford to prop up Goldman Sachs though. That is NEVER an issue.

But the average folks (who have seen their wages stagnate and diminish for 30 consecutive years) unfortunately you guys are on your own. So good luck.

Too many people want to live off the government, and there is only enough money for the rich people (and corporations) to do it. So everyone else should just step aside please.

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