Commentary on issues related to the global economic recession and its recovery
Tuesday, July 14, 2009
Goldman Sachs' blowout quarter
The continued robust turnaround of Goldman, reporting a blowout quarter after paying off the TARP money is a good argument for allowing the markets to work in concert with unfettered managerial discretion. Causality is always difficult to detect but the speed of Goldman's turnaround, before the government got involved, compared to the limping recovery of Citi and BoA, suggests that government's heavy hand restrains rather than enables.