Today, Barry Ritholtz weighs in on the debate over Goldman Sachs between Matt Taibbi and Charlie Gasparino. His verdict? They’re both right.
Writes Ritholtz: “How often do you read two utterly opposing viewpoints — and find yourself agreeing with both of them?”
He explains the reconciliation:
“I suspect Gasparino is reading Taibbi’s piece literally — perhaps too literally. The best way to enjoy it is to think of it as the culmination of frustration by the public, with the struggling masses infuriated at Goldman’s role in this crisis — their CEO requesting a special exemption for more leverage from the SEC (and getting it for themselves and 4 other firms), that same CEO becoming Treasury Secretary, and then doling out trillions of dollars to inept and insolvent financial companies, and finally, Goldman Sachs hoovering up billions. We know they sucked out $12.9 billion dollars via from AIG direct pass thru of bailout monies — must be nice to get 100 cents on the dollar! Most people are probably unaware that Goldman also grabbed $5.9 billion dollars just before AIG collapsed — a transfer that if AIG went thru the bankruptcy process, most likely would not have been permitted to stand.
Add in Goldman’s record profits, its enormous bonus pool, and you have an ideal recipe for a massive GS backlash.
Did they cause the crash themselves? Certainly not, but their role in it, and their uncanny ability to profit/squeeze/steal billions in unsavory and perhaps borderline legal ways — while everyone else is suffering — is why Taibbi’s piece still has resonance months later . . .”
Regardless of this detente, the two journos may very well shred each other on Imus tomorrow morning (still being confirmed). To be continued…
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