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What Really Happened at Goldman in Q2

Goldman borrowed a large amount amount of money form the government. And went to the casino on the taxpayer's dime the past quarter. And won big. No wonder it could pay it back so quickly.

The COMPANY earned $3.4 billion. And that is after setting aside $11.4 billion for its employees. While Goldman's power is alarming, this goes to show our earlier point that it's a case of (well-placed) individuals plundering corporations, rather than corporations plundering individuals.

Even "Value at Risk" methodologies (which underestimate risk), showed that Goldman took huge risks to make its huge gains. That is to be expected. The higher the reward, the higher the risk (usually). But the converse is not true.

Goldman made a killing this past quarter. Some other time, it will be a large loss. And in each case, it will be taxpayer funded. Kid Dynamite makes the interesting point that the goverment, rather than Goldman, is primarily at fault for allowing this to happen.

It's back to the old game. Privatize gains. And Socialize losses.