If these Goldman Sachs guys are so smart and ethical, how come they performed as badly as they did in the video below? And, let us not forget that the basket-case Royal Bank of Scotland, now 84% owned by the UK taxpayer, lost more than half a billion pounds ($841 million) as a result of participating in just one of these Goldman Sachs ‘deals’ after Fred Goodwin’s hubristic purchase of Dutch basket-case bank ABN. The US regulator, the SEC, believes the part played by Goldman Sachs in the ‘transaction’ was fraudulent and it certainly wasn’t transparent.
Cantankerous is consistently amazed that the extraordinary greed and remuneration of ten of thousands of ‘extraordinary’ bankers is rarely questioned morally or economically. Here are seven critical questions to which we need answers:
Would an efficient market of financial institutions, serving the real economy, make the supernormal margins and profits we see at Goldman Sachs? Even while the real economy is in meltdown?
Would efficient producers of financial products pay the kind of salaries we see on Wall Street and in the City of London?
Can any sane observer really claim that the financial markets efficiently allocated capital?
Is the average Goldman Sachs employee really worth an average of more than £100,00 ($166,000) for three months work?
Is the average Goldman Sachs employee worth four top consultant paediatric surgeons?
Is it economically desirable for our brightest engineers to be designing synthetic instruments for financial gamblers rather than designing products to improve peoples lives and sell globally?
Doesn’t paying extraordinary salaries, attracting the smartest greedy people on the planet, increase, rather than decrease, market risk?
On the other hand, those average salaries tend to be skewed upwards due to the higher salaries paid too executives for example Lloyd blackfein who this year was compensated approx. $67mill. in reality the average banker gets paid a relatively low wage considering their hours and in comparison to their work a fraction of the lazy fat cats at the very top.
I do not even understand how I ended up here, however I assumed this post used to be good. I don’t know who you are but definitely you’re going to a well-known blogger in case you are not already. Cheers!