Friday, July 17, 2009

The Joy of Sachs - Paul Krugman

Op-Ed Columnist - The Joy of Sachs - NYTimes.com: "The huge bonuses Goldman will soon hand out show that financial-industry highfliers are still operating under a system of heads they win, tails other people lose.

.....The business of moving money around, of slicing, dicing and repackaging financial claims, has soared in importance compared with the actual production of useful stuff. The sector officially labeled “securities, commodity contracts and investments” has grown especially fast, from only 0.3 percent of G.D.P. in the late 1970s to 1.7 percent of G.D.P. in 2007. ...

The bottom line is that Goldman’s blowout quarter is good news for Goldman and the people who work there. It’s good news for financial superstars in general, whose paychecks are rapidly climbing back to precrisis levels. But it’s bad news for almost everyone else."

Norton's comment: So we haven't broken out of the same good old boy network that is running the economy for their own corp. benefit with the rest of us picking up the scraps on Main St. Get ready for a prolonged depression and slow recovery still leading to another bubble.

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