Facebook Quote

(Community Matters) I came upon this posting on Facebook and had to stop and think:

Let me get this straight. We the people bail out Goldman Sachs so that they can deal from the bottom of the deck and give Facebook shares to their cronies while circumventing public market rules. Where was that pitchfork again??

One response to “Facebook Quote

  1. Felix Salmon blogged about this the other day:

    “Bill Cohan raises an interesting point:

    Goldman’s cost of capital is close to zero — as a bank holding company, it can borrow from the Federal Reserve at negligible interest rates — so any capital gain it makes on its venture in Facebook will be sheer profit.

    “Isn’t this the kind of thing the Volcker Rule was supposed to prevent? Goldman is a regulated bank, with access to essentially unlimited Federal Reserve funds at very low interest rates; it should not be using those funds for speculative bets on its own behalf. But that’s what the Facebook investment looks like.”

    Their lawyers probably figured out a way to make this all legal, but it’s shenanigans like this that upset so many Americans (left, right, center, Tea Party, etc) about the Wall St. bailouts.

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