The Joy of Sachs (in which Krugman twists himself into a pretzel)

New York Times ^ | July 16, 2009 | Paul Krugman

[Lorianne]

The American economy remains in dire straits, with one worker in six unemployed or underemployed. Yet Goldman Sachs just reported record quarterly profits — and it’s preparing to hand out huge bonuses, comparable to what it was paying before the crisis. What does this contrast tell us?

First, it tells us that Goldman is very good at what it does. Unfortunately, what it does is bad for America.

Second, it shows that Wall Street’s bad habits — above all, the system of compensation that helped cause the financial crisis — have not gone away.

Third, it shows that by rescuing the financial system without reforming it, Washington has done nothing to protect us from a new crisis, and, in fact, has made another crisis more likely.

[Lorianne]

This guy has chutzpah! He's been the biggest hurry-up-and-bail-out everybody and his dog cheerleader since Obama took office.

Now he (sorta kinda) says there is a downside to bailout out Goldman?

[Seruzawa]

Even a broken clock is right twice a day.

[Larry381]

it shows that Wall Street’s bad habits — above all, the system of compensation that helped cause the financial crisis

Any so-called economist who would make that statement is an out and out moron.

[FreepShop1]

Goldman is committing mass trading fraud with the STORM software the Russian employee uploaded to a German-based website. (authorities say he "stole it" but he is in fact listed on a patent for such software). STORM is their method of rigging the entire NYSE market to their advantage. Goldman Sachs is a criminal enterprise. My father worked 40 years on Wall St. and he told me that their tentacles are in every level of government.

Where is Ron Paul? Republicans should make GS a BIG target in the 2010 elections. We can really tap deep into blue collar anger. It will stun unprepared Democrats and lead us to sustained gains in Congressional races. Barney Frank's chief aide worked at Goldman twice, in and out of government making sure their interests were protected. Even Frank would be vulnerable to this GOP approach.

[yongin]

We should demonize Goldman Sachs in the same way the Left vilified Halliburton.