SEC vs. Goldman Sachs: what does it mean for the economy and the American middle class?

Posted on April 27, 2010 by

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Politically driven or not, the US government couldn’t have picked a worst time to bring accusations against Goldman.  Has anyone stopped to think that if in fact we are at the beginning of a recovery from the worst recession since the Great Depression, this assault on Goldman will hurt and slow down our economic recovery?  What does an assault on Goldman do?  It erodes investor confidence and brings down the entire financial sector.  The Wall Street Journal reported today that banks: Goldman, Morgan Stanley, JP Morgan Chase and Citigroup all fell.  Can someone ask the members of the Senate subcommittee:  in your opinion, distinguished gentlemen,  What does a struggling banking sector mean for Americans households and businesses that are already facing tight credit constraints?  In my most humble opinion, it means that uncertainty, fear if you prefer, in the banking sector will lead to less finances available to businesses that need them, which leads to less job creation and a big “HALT” to the recovery process.  Although consumer spending was up in the first quarter, it seems obvious to me that if this Government continues to push its agenda to bury Goldman Sachs and to enact a complicated financial reform bill, there will be a drop in investor confidence and surely a drop in consumer spending resulting in slowing down what we hope to be an economic recovery. 

In very simple terms that all Americans will understand and hopefully remember at the polls for the next midterm election this November:  “Blame your current elected officials when you can’t get a loan to buy a new patio set for the summer, or when you can’t afford to buy from Home Depot or Lowes for your home improvement projects”

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