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I'm not blaming Goldman specifically for that, but I am blaming the whole financial industry. They spend huge amounts of resources pursuing zero-sum games like
by jbooth 16y ago
I'm not blaming Goldman specifically for that, but I am blaming the whole financial industry. They spend huge amounts of resources pursuing zero-sum games like this, or obfuscatory games like the mortgage thing and, it seems to me, they haven't gotten any better at actually routing money to where it creates value (their purported raison d'etre) since the 1980s. Instead we just see more and more sophisticated games.
I mean, I guess that's where the money is, so shame on us.
- tptacek 16y agoWhat specifically could Goldman do to reduce the risk to a bank of lending money to a small business that will be spent mostly on salaries and (in the balance) on equipment that will be worth 1/10th its purchase price if they need to call in collateral? Businesses are risky. That's why companies finance with equity.