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Buy low, sell high is the motto of any business. Think of GS as a middle man for stocks and other investments. (Which is kind of what their supposed to do as an
by fleitz 16y ago
Buy low, sell high is the motto of any business. Think of GS as a middle man for stocks and other investments. (Which is kind of what their supposed to do as an investment bank.) GS didn't know for sure when they bought $450 million of FB stock that they'd be able to sell at a premium. If you don't like the price GS is offering, there are plenty of other investments out there. I doubt Rupert Murdoc likes the price he paid for MySpace, and he didn't even have GS middle manning the deal. You can make bad investments with out GS.
How many of us buy servers for each and sell services at a premium above what it costs us for the server? Instead of adding a server to some code, their adding a shell corp to some stock. Maybe they should put ads on the FB stock and give it away for free?
- cma 16y agoMySpace signed an ad deal with AOL post Murdoc acquisition that was worth about the same as Murdoc paid for MySpace. The investment still may end up a loss, but not huge one unless they really screwed things up by hiring thousands of people or something.
- bluedanieru 16y agoWell there's the rub. I don't know if I like the price GS is offering, because I can't trust anything GS says. That's what the comment is pointing out. Well, that and Wall Street doesn't seem to care, presumably because even if they're wrong they won't have to pay the price.
- jrockway 16y agoBut government regulation isn't going to solve that problem either. Remember Enron and Worldcom?
- bluedanieru 16y agoThat doesn't follow. Of course lax enforcement of government regulation by, in the case of the SEC, underfunded agencies, will reduce the efficacy of the regulation. But that says nothing about the law itself either way. I wouldn't hire 50 cops to patrol New York and then complain that laws against armed robbery solve no problems.