So, folks, I was surprised to read yesterday on BBC News (full article) that Goldman Sachs has invested $334m in the Chinese automobile company Geely. While I am all for increasing competition in various markets, I am a free-market proponent, I must admit that a company that we, or I should say, "the government," gave $12b in bailout money (a) paid out big bonuses and (b) is now moving funds into the Chinese economy. Not only do the Chinese own a huge percentage of our debt, various industrial locations, including the Geneva steel mill in Utah, but now they have our bailout funds as well.
I understand that this is probably a wise move by GS, investing in a company that has a bright future, especially because it is tied to the quickly-growing Chinese economy. Also, according to the article, what they have invested can later be turned into shares in the company, so if Geely goes big, and it certainly has plans to do so, GS can make some serious money from their investment, which in turn will hopefully put them back in the black. This will then allow them to pay us all back for the milk money we gave them to make sure they are getting their calcium, so to speak.
I guess my only real problem with this story is that Goldman Sachs, not only famous, but infamous!- decided to move our money outside of the States. I would have loved to hear that GS has invested $433m in a US corporation or company, something which would help build America's sagging economy and contribute to our climb out of the recession. I guess that's all I'm trying to say.
See you next time!
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