4 ms·
You're right about the macro-economics, but the Goldman Sachs angle is still a wtf.
by ahi 16y ago
You're right about the macro-economics, but the Goldman Sachs angle is still a wtf.
- henryprecheur 16y agoThere's nothing fishy about it. They buy treasury bonds from primary dealers, which include Goldman Sachs. http://en.wikipedia.org/wiki/Primary_dealers http://en.wikipedia.org/wiki/Primary_dealers
- arohner 16y agoHow about the part where Bush's Treasury Secretary (http://en.wikipedia.org/wiki/Henry_Paulson http://en.wikipedia.org/wiki/Henry_Paulson), and Clinton's Treasury Secretary (http://en.wikipedia.org/wiki/Robert_Rubin http://en.wikipedia.org/wiki/Robert_Rubin), and the NY Fed Chairman (http://en.wikipedia.org/wiki/William_C._Dudley http://en.wikipedia.org/wiki/William_C._Dudley) are all ex-Goldman Sachs. Doesn't that sound a little fishy?
- smanek 16y agoIf they bought the bonds from the treasury instead of the market, the newly printed money would be in the hands of the treasury. They want it in the hands of the private sector - which makes sense.
- ahi 16y agoTreasury bonds finance Federal spending which ends up in the hands of the private sector--a much broader swathe of the private sector. Buying them from the private sector just means a select group of banks get to slice off a chunk before it gets to the rest of the economy.