Krugman on Sachs

Jason • 17th Jul 2009 • Politics • bailouts, citigroup, economy, goldman sachs, jp morgan chase, krugman

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.