Forum Post: What Would Happen if Goldman Sachs Disappeared?
Posted 13 years ago on Oct. 28, 2011, 1:14 p.m. EST by Keepitsimple
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by JOHN RUBINO on OCTOBER 24, 2011
Do we really? If Goldman Sachs, JP Morgan Chase, Deutsche Bank, Crédit Lyonnais and five or six of their peers ceased to exist tonight, what would happen? Would their absence change the number of factories, hospitals, farms, biotech research labs, oil wells, or gold mines? Would there be fewer houses or cars? Would computers get slower or TVs lower-def? No. The world of tomorrow morning would have exactly the same amount of real wealth and productive capacity as it does today. The main thing it wouldn’t have is a lot of arcane financial instruments that don’t produce anything edible, and a hundred thousand or so bankers making inordinate amounts of money moving this paper around. To the extent that those bankers would have to take jobs making real things, the post-Goldman world would arguably be richer and more productive.
for the whole article: http://dollarcollapse.com/banking/what-would-happen-if-goldman-sachs-disappeared/
You would first hear a loud flushing sound and then the number of used car salesmen, carnival barkers, card sharks, and grifters would explode.
The only real issue I saw in letting the banks fail is the loss of faith in the banking industry. It could have possibly caused a catastrophic run on the banks.
It was a choice of two evils.
Obama would be pretty pissed if he lost Goldman Sachs.