Friday, Sep 26, 2008
Now, for comparison, here's the shell game version. Keep your eye on the pea.
Huffington Post: Keith Richards, Cockroaches, and the Firm of Goldman Sachs
It's been said that when the dust clears from WWIII, the only things left standing will be Keith Richards, cockroaches, and the investment bank of Goldman Sachs.
Having lived long enough to see the Stones, my old New York kitchen, and the events of the past week, I wish I could disagree.
Mr. Buffett, will receive perpetual preferred shares in Goldman, Mr. Praag said. The preferred stock will pay a 10 percent dividend.
shell game explained in hpc comments - article page slow, has 133 comments
Posted by malct @ 10:53 AM (261 views) Add Comment
2 Comments
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1. malct said...
So here's how a real bailout works: Goldman Sachs needs money, Warren Buffet gives them money. In return, Warren Buffet gets stock that pays a ten percent dividend.
Now, for comparison, here's the shell game version. Keep your eye on the pea.
(1) Goldman Sachs gives Hank Paulson seven hundred million dollars (that's seven zero zero comma zero zero zero comma zero zero zero) in salary and bonuses.
(2) Goldman Sachs lends Hank Paulson to the Treasury (now that he can afford to be a public servant).
(3) As the Secretary of the Treasury, Paulson insists that we give Goldman Sachs a lot of money, in exchange for a lot of crap. (If not, we all die.)
(4) Except it's not Hank Paulson's money, it's ours.
(5) If the crap turns out to be crap, we're stuck with it. (And by the way: if it's not crap, why are they so desperate to unload it?)
(6) In four months, Paulson returns to Goldman Sachs.
(7) Paulson receives salary and bonuses from the money we just gave to Paulson to give to Goldman Sachs to give to Paulson.
(8) It's our money. Or was. But we don't get preferred shares. We don't get a ten percent dividend. We don't even get a free copy of The Warren Buffet Way: Second Edition (Paperback). We get crap.
2. Antibesbhoy said...
Great summary, malct.
If this goes through, expect riots on the streets in the US, or some subversive group planting a bomb in GS offices, cars etc.
This could turn nasty !