Goldman Sachs: Less Trustworthy Than a Used Car Salesman

Last night Charlie Rose interviewed Lloyd Blankfein, CEO and Chairman of Goldman Sachs. At one point Rose asked Blankfein if Goldman Sachs had any obligation to inform customers if the products they were selling them were worthless or of significantly lower value than they were paying for them.

Blankfein replied, "No."

Rose appeared dumbfounded, but he continued to press in his lawyer trained manner, but he did miss the easy question, the one I was screaming at the TV:

"So, if you were selling cars off a used car lot, and a customer came in and pointed out a Chevy and said I really want that car and I don't want to hassle. I'll pay book value in cash right here and now, and you, Lloyd Blankfein, knew the car was a lemon, had serious problems that would require major investments to put into proper working order, and you were already willing to accept less than half the price for the car, in fact had intended all along to haul it to the junk yard and sell it for scrap, that you would go ahead and sell this poor, unsuspected customer the car for the price he was offering?"

Now that's the question he should have asked Goldman Sachs' CEO. If you buy something through this company, you'd better thoroughly investigate what your purchasing. And while you're at it, look around and see if you can invest through a different marketer. These people will sell you the air in a plastic bag, and charge you extra for the bag.

NOTE: I own a Chevy, and I'm very happy with it.