Darron CharlesworthGoldman and Sachs, Bookmakers Extraordinaire
April 18th 2010 06:13
Category: No Category
The decision to charge Goldman Sachs is a bold one. To a casual observer it may seem like they have done the wrong thing. In reality this will be very hard to prove and easy for even a mediocre lawyer to talk them out of. What it will mean however is that Goldman Sachs will have to admit what few of us in the real world are savvy to: that they are merely glorified Bookies. That’s correct: Bookies. Because that is what the share market is, gambling in its most deceptive form. What they will be able to argue is that they took a two-way bet on behalf of their clients. To understand this a better understanding of the stock market is required.
Let’s look at what the stock market really is. When you buy shares in a company with the expectation of making money you are betting that the company’s accounts will improve. There are some fairly certain bets which offer low returns but reliably produce small profits to the gambler. Then there are the long shots, those with very high risk but offer high rewards should they succeed. These are usually reserved for those with money to loose but can increase wealth considerably almost overnight. But that is what you are doing and do not try to kid yourself that this is not gambling.
Australians can look back to the Keating Labor Government and thank them for making every Australian a compulsory gambler. This happened when compulsory Superannuation was introduced. Now every working Australian has no choice but to gamble their future on what the share market does. This is not a particularly good system as it leaves everyone exposed to fluctuations in a market they have no control over and, in some cases, have little say in where their retirement savings are invested.
It can then be unsurprising that an investment firm which, just like a bookie, takes a percentage off the top of all transactions and all wins would be prepared to take an each way bet. As they win no matter what the outcome is this makes even more sense from a business perspective. Of course people are going to see this as opportunistic and it most certainly is. Most likely this will be perfectly legal although it may not be considered ethical or moral.
The fact is that corporate bodies will exploit every legally allowable avenue to increase their financial wellbeing and possibly some not so legal ones. Whether these can be seen a unethical and immoral is immaterial. It would be nice if corporations would be community minded and act in the best interest of those who they exploit but it doesn’t work that way. As investors the people are co-conspirators and equally culpable because they participate in the system. At the end of the day as long as the people continue to participate then they cannot cry foul when they do not like the outcome.
Personally I think that firms like Goldman et al are the foundation of the corruption and debasement inherent in society in this day and age. Capitalism and its corporate mistress undermine every thing which makes society and communities strong. Their constant search for greater and greater wealth belittles humanity and all we have achieved. While it is unlikely Goldman Sachs will successfully be prosecuted for their actions let us hope that society becomes wiser to their morally derelict practices.
Australians can look back to the Keating Labor Government and thank them for making every Australian a compulsory gambler. This happened when compulsory Superannuation was introduced. Now every working Australian has no choice but to gamble their future on what the share market does. This is not a particularly good system as it leaves everyone exposed to fluctuations in a market they have no control over and, in some cases, have little say in where their retirement savings are invested.
It can then be unsurprising that an investment firm which, just like a bookie, takes a percentage off the top of all transactions and all wins would be prepared to take an each way bet. As they win no matter what the outcome is this makes even more sense from a business perspective. Of course people are going to see this as opportunistic and it most certainly is. Most likely this will be perfectly legal although it may not be considered ethical or moral.
Personally I think that firms like Goldman et al are the foundation of the corruption and debasement inherent in society in this day and age. Capitalism and its corporate mistress undermine every thing which makes society and communities strong. Their constant search for greater and greater wealth belittles humanity and all we have achieved. While it is unlikely Goldman Sachs will successfully be prosecuted for their actions let us hope that society becomes wiser to their morally derelict practices.
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