I am not surprised to see Goldman Sachs making a profit. But certainly the amount of profits they have made has surprised me immensely. The bank bailout in US was a creation of Goldman thru their proxy Paulson. So one would have expected that their interests were safegaurded well in TARP. But seeing the vulgar amount of profits made this quarter, it appears that TARP was tailored so that all the money flows into Goldman.
I also believe this kind of profits in falling markets & highly pessimistic investment climate is only possible thru not so straight business dealings. In other words I think there was rampant misuse of insider knowledge.
Goldman might be the biggest of the scavengers feeding on the rotten capital markets. But they aren't the only one if Galleon will turn out to be the scandal it seems to be.
Obviously insider trading is rampant. How often it has happened that earnings results are preceded by share price movements which leave no surprise at all about earnings. It seems to be happening most of the time, at least, for the handful shares I track.
I bet Goldman will be safe from any insider trading investigations due to their connections in the establishment. Perhaps a key factor Warren Buffer would have considered when he invested $5 billion in Goldman.
One thing which I don't understand at all is why Governments world over are so meekly listening and doing what bankers say. Makes me think time is up for capitalism.
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