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Market cap is especially misleading in case of investment banks: it's not about how much money they own, it's all about how much of their clients' assets they m
by mamon 9y ago
Market cap is especially misleading in case of investment banks: it's not about how much money they own, it's all about how much of their clients' assets they manage, and that's about $1.5 trillion. Google can only dream of having this much cash at their disposal.
- dragonwriter 9y ago> it's all about how much of their clients' assets they manage, and that's about $1.5 trillion. Google can only dream of having this much cash at their disposal. So, given that number, Goldman manages (and is accountable to clients, as well as their own shareholders, for the management of) a little under 2 Googles worth of market value. Google manages 1 Google worth of market value, accountable only to Google shareholders.
- mamon 9y agoGoogle does not "manage" it's market value, because most of it is frozen, not readily available for Google's CEO to spend. It is also mostly virtual, while GS assets are hard cash. The point is: with $1.5 trillion in assets, Goldman Sachs can, just by slight adjustment in its investment policies, make whole countries prosper economically, or ruin them. Google does not have that much influence.
- notyourday 9y agoOf course it does, it simply chooses not to. If Google re-prioritizes search results for entities it believes are in a specific country, that country is going to have a recession much faster than if GSCO attempts to influence it via policy
- deleted 9y ago[deleted]