The Corner

Goldman Sachs Wants More of Your Money

Speaking of crony capitalists in bed with the administration, Goldman Sachs continues to clarify the “Too Big To Fail” issue I wrote about yesterday. Witness its release of a “study” today:

A $61.5 billion spending-cut bill passed by the U.S. House of Representatives on Saturday would slow economic growth significantly this year, according to an analysis by the global investment firm Goldman Sachs.

“Under the House passed spending bill, the drag on GDP growth from federal fiscal policy would increase by 1.5pp (percentage points) to 2pp in Q2 and Q3 compared with current law,” according to Alec Phillips, who signed the analysis that is dated Tuesday.

Democrats, who want to maintain spending this year at around current levels, seized on the Goldman Sachs analysis.

“This nonpartisan study proves that the House Republicans’ proposal is a recipe for a double-dip recession,” said Senator Charles Schumer, a member of the Senate’s Democratic leadership.

Republicans in Congress, especially conservative Tea Party activists who were elected in November, have touted their fiscal 2011 spending-cut bill and upcoming attempts to impose more U.S. budget cuts as the key to improving the economy and creating jobs.

Goldman Sachs is one of President Obama’s strongest backers, second perhaps only to JPMorgan Chase. If Republicans find “government-subsidized malefactors of great wealth” too strong, they might try bashing “Wall Street Welfare Queens.” Oh, and buy a copy of Charlie Gasparino’s Bought and Paid For to see how the sausage was made.

Most Popular

White House

Rachel Maddow’s Turnberry Tale

To a certain kind of Rachel Maddow viewer, there are few more titillating preludes to a news segment than the one she delivered Monday: “If you have not seen it yet, you are going to want to sit down.” Maddow’s story began, as many of her stories do, with President Trump, this time focused on his hotel ... Read More
Elections

Thin the Herd Further, DNC

There’s an old joke often expressed well into banquets and conferences, where a speaker says, “We’re at the point where everything that needs to be said has been said, but not everyone has said it.” We’re already at that point with the Democratic primary debates. Tonight was a three-hour ordeal, and ... Read More