Tuesday, March 03, 2009

Lloyd Blankfein's Views

For those who have not seen it, Lloyd Blankfein, CEO of Goldman Sachs, gives a nice overview of lessons learned in the Financial Times. See here.

I cannot agree more on his point that the financial services industry has destroyed a lot of trust. I am not sure what they have destroyed more of -- trust or wealth.

The thing that bothers me most is the destruction of trust in markets generally. There will be a wholesale shift to the public sector. It won't surprise me to see some Eastern European countries shifting seriously back to a communistic mentality, thinking that they were actually better off back then. I for one think that is very wrong.

One source of optimism is that sales of Atlas Shrugged have been soaring. The Economist had the original story, but here is a link from another paper.

8 comments:

Anonymous said...

Dang...I wish we could just have some middle ground. Something in between Atlas Shrugged and communism.

Robert G. Hansen said...

There was a middle ground...it was called the USA.

cheers,

bob h

Anonymous said...

You really think we're on the verge of communism? Please.

Anonymous said...

Professor Hansen has a PhD in Economics. So, if he says that we are on the verge of communism, we must be, 'cause he would know.

Stuffer McDevitt said...

Through her adoration of greed and consumption, Ayn Rand single-handedly caused the credit crisis. If she did something worthwhile with her life and did not write those silly books, the Dow would be at 11,000 right now.

Makes me wanna vomit.

kevin said...

Referring to his Ayn Randesque views on the free market, Alan Greenspan said in Oct-08 said: “I have found a flaw. I don’t know how significant or permanent it is. But I have been very distressed by that fact.”

Alan seems to be backing away from Ayn Rand. Yes, free markets are great and we are all lucky to be living in the US. But, what's wrong with a little regulation? Can't we learn from this credit crisis that we can't depend upon people and entities to look out for their long-term self interest? Why should it be perceived as 'optimistic' that some people are choosing to bury their heads in the sand, and retreat to reading Atlas Shrugged?

Snafu O'Snicker said...

I say get rid of minimum wage, child labor laws, all environmental regulations, Sherman anti-trust act and all other regulations that impinge on the free markets. Down with the socialists! Down with the communists! Give me freedom!!!

Rooster F. Trendeski said...

Greenspan argued for the proliferation of derivatives when real business people like Buffett ran away from them. Based on that, not sure why I should care that Greenspan is a changed man, Kevin. I care more about what Buffett has to say since he has a better track record.