Reuters has calculated that the average salary for nearly 30,000 employees of Goldman Sachs (GS) this year will be $1 million.
NEW YORK, July 14 (Reuters) - The average Goldman Sachs Group Inc (GS) employee is within striking distance of $1 million in compensation and benefits this year, just nine months after the bank received a $10 billion U.S. government bailout. -Skip- Just a few other pertinent factors to consider: The stock has tripled since late last year. Bullish forecasters are calling for it to surpass its historic high above $250 per share within a year or so. Goldman's access and influence within the US Administration is without equal. Goldman envy is rife amongst finance professionals, no matter how much they protest about its privileged position. Hatred of Government Sachs is rife in the blogosphere. Goldman can make more in a nano-second than most people would earn in several lifetimes. All asset classes are traded by the firm and they can flip from being long to short (or both) and back faster than it took the folks at Bear and Lehman to clean out their desks. It is hard to imagine a scenario in which Goldman wouldn't survive a financial Armageddon but where its principal client, the US Treasury, would. If you believe in buy and hold, and like to buy dips, this seems like the right place to be looking when the baby's being thrown out with the bathwater. Warren Buffett is extraordinarily enthusiastic about the company. It's hard to resist the conclusion that if you can't beat them then you simply have to join them. Not literally of course....But one can of course get a piece of the action by hitching a ride with the stock. So, even if the thought of making a million dollars this year seems like a remote fantasy a program of gradual and judicious accumulation seems like a no-brainer. Who knows, one day the smart folks at Goldman will probably figure out how to do a reverse takeover of the global financial system, and for those who bought the stock while it was still cheap, that could really add sizzle to their retirement plans. (My bold.)
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Just a few other pertinent factors to consider:
Who knows, one day the smart folks at Goldman will probably figure out how to do a reverse takeover of the global financial system, and for those who bought the stock while it was still cheap, that could really add sizzle to their retirement plans. (My bold.)
Goldman can make more in a nano-second than most people would earn in several lifetimes.
Do thy even know what a "nanosecond" is?
A median person's earnings over a lifetime: a couple million dollars. Several lifetimes: say 10 million.
That's our nanosecond. So, Goldman Sachs would make more than 10 million billion per second, or more than one million million billion dollars per day (10^21) or close to a million billion billion dollars per year (10^24).
Reality: roughly 10 billion per year. In the long run, we're all dead. John Maynard Keynes
The argument is still misleading, but in a different way, as Goldman Sachs earns this money (legitimately or not) for their work setting up these trading systems, not just for the "nanosecond" of work.
AMY GOODMAN: How might Goldman Sachs profit off global warming? MATT TAIBBI: Well, Goldman Sachs is positioned in a number of different ways. They are a part owner of the Chicago Climate Exchange, which is where the carbon credits will be traded if this legislation goes through. They're also heavily invested in a number of companies that deal in carbon credits. And again, this is another kind of commodities market, like the oil commodities market, which exploded last summer and is exploding again now. And Goldman and banks like Morgan Stanley are poised to make an enormous amount of money if these carbon credits end up getting traded.
MATT TAIBBI: Well, Goldman Sachs is positioned in a number of different ways. They are a part owner of the Chicago Climate Exchange, which is where the carbon credits will be traded if this legislation goes through. They're also heavily invested in a number of companies that deal in carbon credits. And again, this is another kind of commodities market, like the oil commodities market, which exploded last summer and is exploding again now. And Goldman and banks like Morgan Stanley are poised to make an enormous amount of money if these carbon credits end up getting traded.
