Patrick Bobbins is an economic analyst and contributor for “The Thirsty Quill.” He is employed in the financial industry here in Charlotte, and graduated from UNCC this past May. Patrick is a strong Conservative in his political views, and will offer his insight here at ‘The Quill’ from time-to-time. We appreciate Patrick’s contribution, and we look forward to publishing more of his articles/editorials in the future. Feel free to contact Patrick via email at pbobbins@carrollfinancial.com.

“Economic Hypocrisy”

By: Patrick Bobbins, Economic Analyst for “The Thirsty Quill”

As I sit here in the Trading Room at Carroll Financial and watch the former Treasury Secretary Henry Paulson being grilled by a Finance Committee in the House of Representatives, I can’t help but think how hypocritical our truly government is.

It is mind-blowing to recognize just how little our congressional leaders actually know about the laws that they enact and push to implement.  For example, earlier this week Goldman Sachs, one of the premier financial firms in the world, posted record corporate profits during one of the worst economic downturns since the Great Depression.  Profits in an economic downturn…something many would think is phenomenal and praise worthy, right?

Not so, according to our simpleminded congressional leaders, many of whom actually seem agitated that such profits would dare be made amidst such an economic calamity as the one we are currently experiencing.  They (Congress) seem like little children groveling over an empty cookie bowl - Goldman Sachs posts a record profit (full of cookies) - and yet our government (Congress) is running record deficits (no cookies).

Some ask Henry Paulson, “how can Goldman Sachs posted record profits when they accepted TARP money?”  I can tell you a few reasons why.

1) The government forced them, along with other large financial institutions, to take TARP money - this money was dished out at low interest rates ~5% or so (approximately). The stock market represented by S&P 500 is up 15.22% for the Second Quarter.  And yet, they wonder why Goldman Sachs posted profits???

2) Goldman Sachs pays to retain top talent by rewarding success  - not trying to suck the ingenuity out of our nation by taxing the rich.  Shouldn’t they be glad that Goldman Sachs was able to repay all of the “taxpayer” (borrowed) money?  Its’ so hypocritical - “What’s that…a profitable company?  How can that be?  They shouldn’t be making any money?”

Profit is what the American economy is based upon.  The last time I checked, the government taxes profits, not losses (which equates to more revenue for the government). But perhaps I need to go back to Accounting 101…if I’m wrong.

On a side note, how can we let Congress retain full pay for life after only serving one term for our country?  They do not deserve to be supported by taxpayers for the rest of their lives, especially if they didn’t even accomplish anything during their term.  All of this is coming to light at a time when Congress gets angry over the $Millions paid out in bonuses to corporate executives, many of whom led profitable companies over a long and noteworthy career.

I know there is abuse in corporate America…but trust me when I say that the abuse is much worse in our own government.

It’s time to stand up and say ‘enough is enough.’

Patrick Bobbins is an economic analyst and contributor for “The Thirsty Quill.” He is employed in the financial industry here in Charlotte, and graduated from UNCC this past May. Patrick is a strong Conservative in his political views, and will offer his insight here at ‘The Quill’ from time-to-time. We appreciate Patrick’s contribution, and we look forward to publishing more of his articles/editorials in the future. Feel free to contact Patrick via email at pbobbins@carrollfinancial.com.