Sunday, August 9, 2009
Selfish Small Minds
There are a lot of selfish, small minds in this world. Most of them are liberals. For some reason they don't like anyone to succeed except themselves. The case in point is their attitude toward Goldman Sachs. Goldman Sachs is the last large, pure investment firm left in the country. Liberals hate investment firms and I am not sure why. But right now they are picking on GS.
GS just turned in the best quarterly profits in the the history of the company. This means that they aggressively pursued and did well with riskier investments. They have top-notch managers and they are making money for their investors and their stock-holders. Now, because they have done so well, they are under investigation by some government agency. This sends the message that they don't like investment firms succeeding when they play by their own rules..... the rules that actually work. The feds don't want you to make money, unless you make it their way, which is kind of hard, because their way doesn't make money. The feds don't want you to take a risk unless they first approve of the risk you are taking. In other words, the fed wants to control you, and your destiny. If you make money they will investigate you. The feds make me want to puke.
If they are going to investigate GS, it should be for one reason: to find out what really works in the world of investment.
Now, let's see. It was the Feds that pressured the banks to make risky loans to individuals who would not normally qualify. This was because there were too many minorities not qualifying. This was not because they were minorities, but because they didn't have the jobs, the down payments, or the credit rating under normal rules. So the feds relaxed the rules and pressured financial institutions to make these risky loans.
Then the feds turned around and raised interest rates which pressured the ARMS to move upward. Now these same minorities that the feds wanted to help, they ended up damaging. These people could no longer pay their loans and their houses went into foreclosure. Who did the feds blame? Certainly not themselves, but the same financial institutions they pressured to make the loans. When these loans could not be repaid, these financial institutions began to fall. Now the feds saw a great opportunity to take them over.
One financial institution that stood tall and strong throughout the crisis and the recession that ensued was Goldman Sachs. They continued to thrive and make profits. The feds don't like it and are searching for a way to rein them in.
It seems to me, that there is room in this economy for a Goldman Sachs. Love them or hate them, understand this, without them the recession would have been much deeper. They were the light and the ray of hope in the darkest hour of the recession. Without their influence on the markets, you 401K would be worth even less than it is today. And the partial market recovery would be less than it is.
Why shouldn't it be my decision where I invest my money and what type of risk I want to take. Every great corporation began with risk takers and those who succeeded were rewarded for their risk.
I think the liberals are jealous because somebody is succeeding without them. The liberals really don't want anyone to succeed. They think that anyone who makes more money than themselves is making too much. They love a small economy with high unemployment because they can then say, "let us help you." Well, their help has spent over a trillion dollars that our grandkids will have to repay and there are fewer jobs now than when they started giving the money away. Thanks for you help, but no thanks!
Let those who know how to succeed lead our economy back to health. Then we will all know how to succeed.