So Goldman Sachs, Citigroup and Chase all reported multi-billion dollar profits during the second quarter this week. The NY Times’ Paul Krugman weighed in on Sachs:
First, it tells us that Goldman is very good at what it does. Unfortunately, what it does is bad for America.
Second, it shows that Wall Street’s bad habits — above all, the system of compensation that helped cause the financial crisis — have not gone away.
Third, it shows that by rescuing the financial system without reforming it, Washington has done nothing to protect us from a new crisis, and, in fact, has made another crisis more likely.
The rest of his column is a must read.
Related posts:
- The Goldman Sachs Punch Line
- More Krugman Goodness
- The Great American Bubble Machine : Rolling Stone
- Krugman on the economy
- Huge Bonuses – Part 2
Tags: bailouts, citigroup, economy, goldman sachs, jp morgan chase, krugman
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