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Thursday, December 10, 2009

GS is smarter than the Masses

GS is just smart. Even when they cater to the masses.

(The conspiracy folk are just out to make a few bucks on the term 'conspiracy'.)

GS will pay their people w/stock this year. That means executive 'X' will get $1M in stock instead of $1M in cash. All because the masses are protesting the 'cash bonus'.

But the mob is stupid (even though the individual may be smart). With this viral world, the individual became a part of this 'hate Goldman' mob. Where by smart individuals became stupid. (at least for this issue)

Let me explain:

GS is giving stock instead of cash, and stock they can only sell in 5yrs. Cash bonuses are taxed north of 35%, directly sent to local, state and federal taxes. Stock bonuses are not. They act as capital for the company.

So the mob has prevented the state municipalities from receiving much needed cash (in terms of millions of dollars), firmed up the company so that the stock will most likely triple w/in the next few years, and that $1M will most likely become $3M in 5yrs making the execs that much richer.

GS... i still got your back.

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