Matt Taibbi’s 12-page screed on Goldman Sachs has appeared on newsstands; Zero Hedge has scans, but I can’t link to the piece itself because Rolling Stone hates the internet. Suffice to say that in the second sentence of the piece Taibbi describes Goldman as “a great vampire squid wrapped around the face of humanity”; later on, he calls it “the planet-eating Death Star of political influence”. He’s also a dab hand at the pen-portrait:
Joe Weisenthal is right that the value of a Best Picture nomination has just plunged, now that the number of Best Picture nominees has doubled. What he doesn’t mention is that although there might be some marginal boost for film studios who would otherwise not have gotten a Best Picture nomination at all, there is probably going to be a significant devaluation of the actual Best Picture award.
Back in March 2008, Diana Henriques noted something very odd: a large number of futures contracts traded in Chicago were expiring at levels much higher than the spot cash price. She said at the time that “economists who have been studying this phenomenon say they are at a loss to explain it”.
Let’s break this down in the simplest terms: this is a disaster. Without taxpayer guarantees and funding, Citigroup would be unable to give its employees higher base salaries. The best employees would leave for other firms. This market process would further diminish Citi and enhance its better managed competitors. Everyone, except Citi shareholders and some of its senior management, would be better off. Instead, taxpayer funds are being used to block this market process, trapping talent inside a failed firm and rewarding management’s worst mistakes.
Societally speaking, it’s a good thing — as Dan Roth says — that Wall Street is losing its brilliant employees and that hot young university graduates are looking to other sectors instead. All that talent is better used just about anywhere else, largely because on Wall Street innovations are kept secret until the point at which they’re no longer of any use: