Hey, We're In the Movies!!!

via Yglesias (v'Yglesias?)

A big reason for Goldman Sachs’s blowout profits this year has been the willingness of its traders to take big risks — they have put more money on the line while other banks that suffered last year have reined in such moves. Executives say there are big strategic gaps opening up between banks on Wall Street that are taking on more risks, and those that are treading a safer path.

It’s not really a “risk,” though, is it when you’re operating with an implicit government guarantee to pull your ass out of the fire if your bets blow up. The federal government is taking a risk on these Goldman trades, they’ve just given Goldman the bulk of the upside.

The upside being apparently about $32 billion in bonuses. I know exactly nothing about the structuring of corporate bonuses. Hell, for all I know, $32B is low. But I do know that Goldman Sachs' CEO has instructed his employees to not be showy and draw attention to all their benjamins. Which means that the inevitable-next-time the government has to step in and save their asses again, we're basically handing out taxpayer money to re-enact this scene over and over. Hmm.