Goldman's reputation is toast - PeachParts Mercedes-Benz Forum

benhogan · #1 04-30-2010, 10:31 AM

Read this SEC complaint about Goldman.

Assuming only half of the allegations are true, their reputation is toast.

http://www.sec.gov/litigation/complaints/2010/comp21489.pdf

Jim B. · #2 04-30-2010, 10:44 AM

In the recent health care debacle a LOT of people were worried that they might lose their relationship with their friendly doctor.

No such thing as a "friendly" banker though, for them to worry about losing a relationship with.

aklim · #3 04-30-2010, 12:10 PM

Well, things will be good in a couple of years. This will be forgotten. After all, they are too big to fail, are they not?

benhogan · #4 04-30-2010, 12:41 PM

Quote:

Originally Posted by aklim

Well, things will be good in a couple of years. This will be forgotten. After all, they are too big to fail, are they not?

In a few weeks, the saying might be.....too big to go to jail not just too big to fail.

I honestly think that Americans (in general) admire boldness and risk taking. We idolize Jobs and Gates for taking risks, succeeding, etc.

However, that admiration quickly changes to rage when it is discovered that the playing field was not level after all.

This is an interesting characteristic of Americans.

In other countries, it is almost expected that the cards are stacked. I'm not naive enough to think that card stacking does not exist in the US but we all like to think that the playing field is level.

This whole Goldman scandal will pass. Unfortunately, we forget the lessons really quickly.

aklim · #5 04-30-2010, 01:23 PM

Quote:

Originally Posted by benhogan

I honestly think that Americans (in general) admire boldness and risk taking. We idolize Jobs and Gates for taking risks, succeeding, etc.

It isn't a risk when Daddy bails you out. It is a risk when you have to sink or swim.

benhogan · #6 04-30-2010, 01:35 PM

Quote:

Originally Posted by aklim

It isn't a risk when Daddy bails you out. It is a risk when you have to sink or swim.

Do you honestly think Jobs and Gates were thinking that when they started AAPL and MSFT?

Hmmmm....OK

aklim · #7 04-30-2010, 02:08 PM

Quote:

Originally Posted by benhogan

Do you honestly think Jobs and Gates were thinking that when they started AAPL and MSFT?

Hmmmm....OK

I'm not sure what they were thinking but I know that when I started my businesses, I calculated what would happen if it didn't go well and how to protect myself. I was just saying that right now, companies like GS, GM, etc, etc, are not really playing from a risk point since they know that if something goes wrong, someone will bail them out.

strelnik · #8 04-30-2010, 02:30 PM

Quote:

Originally Posted by benhogan

In a few weeks, the saying might be.....too big to go to jail not just too big to fail.

This whole Goldman scandal will pass. Unfortunately, we forget the lessons really quickly.

Yes, this is why I have no sympathy for us. I used to, but not now.

People get the candidate they elect, and they get the banking system they allow to exist.

Qu'on fasse venir les coupe-tete! as the French king used to say.

benhogan · #9 04-30-2010, 02:32 PM

Technically, I suppose, GS didn't break the rules (the law) per se but it sure failed the ethics rules.

It's their bed. They should sleep in it.

aklim · #10 04-30-2010, 02:34 PM

Quote:

Originally Posted by benhogan

Technically, I suppose, GS didn't break the rules (the law) per se but it sure failed the ethics rules.

It's their bed. They should sleep in it.

That's fine with me. I have no issue with a company not being ethical as long as they operate within the framework of the law.

That I don't like. As I have said before of BOTH companies and people. If you remove the DIS-incentive for failure, you are failing to provide the proper motivation for excellence. You are also removing the example of what happens when failure is encountered

benhogan · #11 04-30-2010, 02:47 PM

Quote:

Originally Posted by aklim

That's fine with me. I have no issue with a company not being ethical as long as they operate within the framework of the law.

It's fine with me too but those companies do not tend to last very long.

Enron's mark-to-market accounting was within the law. It just happened to be a lousy law that served no real purpose.
Still within the law though.

aklim · #12 04-30-2010, 02:50 PM

Quote:

Originally Posted by benhogan

It's fine with me too but those companies do not tend to last very long.

And that is how it should be.