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Econwatch
July 14, 2009 8:23 PM

Extraordinary Rebound from a Meltdown

By
Katie Couric
Topics
Recession
Goldman, rescued last year by $10 billion taxpayer bailout, is back in the black. It reported a second-quarter profit today of more than $3 dollars - and, it's paid back the loan.

Still waiting for a rebound is the job market. The president said Tuesday we'll have to wait a while longer.

"We will probably continue to see unemployment tick up for several months," Mr. Obama said.

The resident once predicted it would top out at 8 percent. It's now 9.5 percent.

And what looks like a glimmer of hope for the economy may be a mirage. Retail sales rose in June, but it wasn't so much that we were buying more, we were paying more as gas prices spiked.

Watch Katie Couric's report below:


Watch CBS Videos Online

Add a Comment
by ibsteve2u July 15, 2009 1:35 PM EDT
By the way: Goldman's figure is that compensation will average $386,429 per employee due to the billions they have set aside out of their...surprisingly...massive profit.

Do you ever wonder how many isolated offices in Podunk, Middle America and Bumfick, Egypt they have to include in their holdings portfolio - at least temporarily - to keep that average that low?

lollll....
Reply to this comment
by ibsteve2u July 15, 2009 1:25 PM EDT
For Pete's sake...if you have all of the insider knowledge that is POSSIBLE in the world, AND you have a hand on the rudder steering the movement of ALL money AND the economy, then you would have to be as dumb as a figurehead Republican President NOT to make money.
Reply to this comment
by ibsteve2u July 15, 2009 1:26 PM EDT
And by that I mean:

Q: When is a "bailout" not a bailout?

A: When it is merely the transfer of funds out of the U.S. Treasury.
by SomeGuy_9128 July 15, 2009 11:01 AM EDT
Cool! now they can double-time paying back their pailout funds! Corporate welfare stinks. Individuals should do this well and be able to get right off the welfare roles, too. To bad that doesn't seem to be the intent of government welfare.
Reply to this comment
by AOCGUY July 15, 2009 12:47 PM EDT
Hey Some Guy - You might want to read the article. Goldman Sachs HAS paid back the loan and is now paying taxes on the profit.
by sjc_1 July 15, 2009 10:59 AM EDT
Paulson, the former Treasury Secretary was a former CEO of Goldman with lots of stock on the line. He made sure that they we in on all the meetings and were covered for the CDO/CDS mess. He was not going to let his stock value go down.
Reply to this comment
by cs4466 July 15, 2009 2:16 AM EDT
Looks like the bailout is helping to reverse some of the damage of the eight years of Bush/Neocon failure. Kudos to President Obama. Man, that's gotta tick off the Limbaughicans.
Reply to this comment
by payasyougo July 14, 2009 9:27 PM EDT
There is nothing extra ordinary about taking as much risk as possible since on the upside you make billions while if you choose poorly the government steps in and bails you out. They are doing what got them into trouble last year. Wouldn't you with those odds? GS is in a win only situation.

Is anyone really paying attention to what is going on here?

Feel free to explain to the rational world how GS traders can lose when the government has shown it will rescue with funds from the endless taxpayer piggybank when they guess wrong.
Reply to this comment
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