Feature

Business columns: News flash: Goldman isn’t a charity

Apparently we need to be reminded that Goldman Sachs is in business to make money, said Barry Goldman in <em>Los Angeles Times.</em>

Barry Goldman
Los Angeles Times

Apparently we need to be reminded that Goldman Sachs is in business to make money, said Barry Goldman. A storm of public outrage erupted when it was revealed that before the financial crisis, Goldman Sachs sold risky mortgage bonds to its customers and then, for its own benefit, made financial bets that the price of the bonds would fall. Goldman made fistfuls of money when those bets proved correct. If you’re shocked, then you don’t understand capitalism.

Back in the 18th century, Adam Smith observed that “the butcher, the brewer, or the baker” is motivated by self-interest, not unselfish benevolence. Or to put it in contemporary terms, the average stockbroker isn’t motivated by a desire to see that his clients’ kids have money for college, but rather by “a desire to see that his kids have money for college.”

So stay skeptical. “When the voice on the phone tells you he’s got an investment that will double your money in 30 days, ask yourself: “‘Why is he calling me? If I knew about an investment that would double my money in 30 days, would I call him?’”

Recommended

Civilian death toll in Ukraine tops 4,000, U.N. says
Bombed school in Luhansk
fighting to survive

Civilian death toll in Ukraine tops 4,000, U.N. says

10 things you need to know today: May 28, 2022
Protesters outside the NRA convention
Daily briefing

10 things you need to know today: May 28, 2022

Strong earthquake hits southern Peru
Peru.
shaken up

Strong earthquake hits southern Peru

Fire kills 11 newborn babies in Senegal hospital
Senegal hospital fire
tragedy

Fire kills 11 newborn babies in Senegal hospital

Most Popular

Is the war shifting in Russia's favor?
Vladimir Putin.
Opinion

Is the war shifting in Russia's favor?

CDC identifies 9 monkeypox cases across 7 states
Monkeypox virus.
more pox

CDC identifies 9 monkeypox cases across 7 states

Uvalde gunman was inside school for an hour as parents urged police to act
Uvalde school memorial
'Go in there! Go in there!'

Uvalde gunman was inside school for an hour as parents urged police to act