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A new world on Wall St

mammasanmammasan Posts: 5,656
edited September 2008 in A Moving Train
http://money.cnn.com/2008/09/21/news/companies/goldman_morgan/index.htm
"When one gets in bed with government, one must expect the diseases it spreads." - Ron Paul
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Comments

  • Pacomc79Pacomc79 Posts: 9,404
    Is it just me or does all that merging seem like a bad thing to anyone else?
    My Girlfriend said to me..."How many guitars do you need?" and I replied...."How many pairs of shoes do you need?" She got really quiet.
  • blackredyellowblackredyellow Posts: 5,889
    Pacomc79 wrote:
    Is it just me or does all that merging seem like a bad thing to anyone else?


    That's the first thing that I thought when I heard that this weekend.
    My whole life
    was like a picture
    of a sunny day
    “We can complain because rose bushes have thorns, or rejoice because thorn bushes have roses.”
    ― Abraham Lincoln
  • mammasanmammasan Posts: 5,656
    I have to admit my understanding and knowledge of the world of finance is limited, but my girlfriend works in the industry and is very uneasy about this idea. She admits that the move will probably save her job, she works for WaMu, and a merger with Goldman Sachs will definitely save her job. A Well fargo take over will do the same and she seems more comfortable with that possibility. I guess we will have to wait and see how this all plays out. I am more concerned with the $700 billion plus our government has spent bailing out all these institutions.
    "When one gets in bed with government, one must expect the diseases it spreads." - Ron Paul
  • blackredyellowblackredyellow Posts: 5,889
    mammasan wrote:
    I have to admit my understanding and knowledge of the world of finance is limited, but my girlfriend works in the industry and is very uneasy about this idea. She admits that the move will probably save her job, she works for WaMu, and a merger with Goldman Sachs will definitely save her job. A Well fargo take over will do the same and she seems more comfortable with that possibility. I guess we will have to wait and see how this all plays out. I am more concerned with the $700 billion plus our government has spent bailing out all these institutions.

    My knowledge of finance is very limited, but one thing that scares me a bit is this. If these large investment banks are able to gobble up some of the larger retail banks, what happens if years from now something like this happens again? A corporation like Goldman Sachs may be more diversified and be able to stay afloat, but what if it can't? Then is takes down part of the retail banking industry too, causing more damage.

    I don't know... maybe I'm off base, but we're seeing what damage can be done when these large companies go under, making them even bigger seems more like an "all of your eggs in one basket" approach to our economy.
    My whole life
    was like a picture
    of a sunny day
    “We can complain because rose bushes have thorns, or rejoice because thorn bushes have roses.”
    ― Abraham Lincoln
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