Goldman Cashes In

Goldman Sachs is taking maximum advantage of government freebies, while at the same time poormouthing them. It's possible that Goldman didn't really need or want bailout money, but was forced to take it to mask other banks who desperately needed it. Once it got it, however, it didn't wait to profit from the taxpayer largess.

One of its biggest benefits was indirect. Goldman was owed money by AIG; exactly for what is not clear to me, but AIG paid Goldman about $12 billion. Goldman knew it was making a bad bet on whatever trade it made with AIG as a counterparty, but the government bailed it out at 100 cents on the dollar. Shouldn't it pay some penalty for making a bad bet, say making only 80 cents on the dollar? That would have whiped out its $1 billion profit for last quarter, although Goldman argues that it would not. There are even more questions about Goldman's tax year accounting. But in any case it came out smelling like a rose thanks to the taxpayers.

Today's NYT reveals that Goldman is cashing in on another taxpayer subsidy that guarantees its debt for free, even as it touts its withdrawal from the TARP. This program apparently helped it raise the capital that it says it will use to replace the TARP money. The NYT points out that this program could bankrupt the FDIC, but we'll all hope that it won't.

Prof. Mearsheimer on Amb. Freeman

For the record, here's an article by John Mearsheimer on Chas Freeman's being blackballed by the Israel lobby.  

Republicans, Back Off on Christopher Hill

While I'm on the subject of destroying America by being obstructionist on every issue, what about the Republicans blocking the confirmation of Christopher Hill to be Ambassador to Iraq? The opposition is being led by John McCain and Lindsey Graham, two men who claim to be military patriots. This article in Foreign Affairs says that they are seriously upsetting the US military that wants an ambassador in place to take some of the burden for running Iraq off of the military.

Hill was a loyal diplomat for Bush, but because he worked on North Korea, the Republicans want his head. It's the same kind of McCarthyism directed at the State Department that destroyed career diplomat Chas Freeman's nomination to head of the CIA's NIC. Republicans are just not happy unless their killing children, or getting the Israelis to do it for them. I thought John McCain was supposed to be some kind of moderate. I don't think so. He must be extremely bitter about his loss in the Presidential election and has just decided to destroy America, since it didn't vote for him.

Republicans, Back Off on Geithner!

The Republicans need to back off on calling for Treas Sec Geithner's head. As this FT editorial says, he deserves to be given a chance. Geithner didn't cause this crisis, the Republicans did, with all their pro-business legislation (or lack thereof) during the last eight years. Geithner may not have covered himself with glory, but he's working hard, and he has little help, because all the Wall Street tycoons who should be helping him in senior Treasury positions can't or won't because of their criminal conduct working on Wall Street.

By calling for his ouster or even by screaming criticism at him, Republicans are trying to get rid of or immobilize the captain of a ship while it is caught in a hurricane. Even it he's not the best captain, he understands the situation, and he's all we've got. We're in a situation where we don't even have a first mate. Calling for Geithner's ouster is tantamount to calling for the destruction of the American economy. It's grossly irresponsible.