Gaining from speculation

An interesting article in the Huffington Post examines how Goldman sachs managed to make 3 billion only a year after being saved by the US tax payer.

It works like this. Asset prices are very low as financial system is in turmoil, taxpayer gives GS money, they invest it, asset prices rise as fears over banks subside.


One thought on “Gaining from speculation

  1. I found that in the bathhouse trash. I think its an excellent link.

    It’s crucial to see how speculation is institutionalised into the political economy (and would be what I’d do a phd on). When we dismiss speculation as ‘irrational exuberance’ or bemoan ‘casino capitalism’ in the aftermath of a crisis, we ignore how year after year, people create new ways to drive and gain from speculation.

    Imagine if those massive speculative gains could be returned to the savers who made it possible, though some sort of savings union perhaps? Should the bathhouse unionise their savings, invest through zopa and donate our gains to charity?

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