Friday, July 17, 2009
Krugman points out that the net effect of Goldman Sachs on the American economy is negative. I've been saying something like this for a while so he must be right. At the weekend Will Hutton said the same thing about hedge funds and, of course, it's also true of private equity operations which specialise in ruining perfectly decent companies like Boots. Why anybody should ever have thought that an insane proliferation of financial 'instruments' or 'products' was in any way a good thing is a mystery. I dimly recall some City type telling me it was a way of 'smoothing' markets but, when pressed, he couldn't explain what this meant. Anyway, it's all starting up again. Having seen Sir David Walker on television last night, it seems pretty clear that nothing will change and, in another few years, bankers will once again lose every penny they ever make. Smoothie Walker went further than Joanna Bourke when it came to the little people in places like Bromley. He came right out with it and said they wouldn't understand. I mean they haven't even got jobs have they?
Posted by Bryan Appleyard at 7:58 am