wildfireCongrats Paul La Monica. Your editorial,  “Shut up, Lloyd Blankfein!” is spreading like wildfire. It’s ‘gone viral’ as they say. However, it is clear that your knowledge of the issues involved is limited, at best.

It draws in populists with the provocative “Shut Up” headline, then morphs into stealth Goldman ass-kissing. It essentially tells Goldman-critics to man up and stop whining.

It starts out with a bit of promise:

The public relations gurus who are advising Goldman Sachs Chief Executive Officer Lloyd Blankfein might want to give him some new advice. Shut up!

Blankfein made a startling confession Tuesday. He apologized for Goldman’s role in the financial crisis, saying that the bank ‘participated in things that were clearly wrong and have reason to regret.’

But any redeeming qualities end there. He goes on to display ignorance in the subjects of finance and banking. He essentially argues that Goldman should be allowed to do as it pleases. This part particularly rankled me:

The notion that Goldman’s good fortune is a problem is silly. Even though many average Americans are still struggling financially, it’s misguided to suggest that everybody should be suffering and that the nation would have been better off if Wall Street went under. . .

Goldman Sachs is a bank. It’s supposed to make money. It’s supposed to take risks. Lloyd isn’t exactly running the March of Dimes.

Where to begin? Monica’s statement that banks are “supposed” to take risks is interesting. Because I thought a bank was supposed to safeguard people’s money, while making responsible loans to others. That’s how fractional-reserve banking works.

Goldman Sachs is an investment bank/hedge-fund with government guarantees. They’re not a “bank” in the traditional sense of the word.

Rubbish in a bin

When the U.S. converted GS and other “systemically important” firms to bank holding companies, it flat-out saved their asses. Ongoing perks include cheap Fed funds and the ability to issue government-guaranteed debt (Goldman still has around $20b in gov-backed debt).

And Monica says they are supposed to take risk, with explicit government-backing? That, my friends, is 100% pure garbage.

His statement that we should get off Goldman’s back, since they