Across the globe, market analysts believe that second quarter’s GDP report throws some light on indicating that US current economic recession is seems to be approaching bottom, with US Government economic stimulus plan’s to start showing positive effects in the second quarter. Most economist are foreseeing more concrete effects in 2nd quarter of this year, to next year, from the economy stimulus plan rolled out by US President’s administration.

Also on earlier, USA House of Representatives votes and approved the urgent move to shift more funds in economic stimulus plan to the “Car Allowance Rebate System” ( which informally called “Cash for Clunkers” ).  With this move, additional of $2 billion will be available to sustain the bill which was signed into law by US President Obama , creating the NHTSA Car Allowance Rebate System (CARS), in effort to help turning the economy around.

So far, there has been mixing reactions to this bill and on the additional funding made. One thing to note is, the public need to be clear on the fact that it was unrealistic those on top level to review a bill , and then to  come up with comprehensive set of rules and guidelines in such a short time span.

Nevertheless, on the ground, the responses appears to be pretty encouraging, with motor vehicles dealers reporting much positive result and more sales. On the surface, it help on consumer spending, and instill confident in the market to keep people spending and move the cash around. On the other hand, with more vehicles pushed out, factory could then be able to kick off with more production, and also purchasing more part along the way.

In such, if we look at it that way, the bill is indeed a good move by the Administration. But the question remain too – Could it sustain ? By continuing putting more money in consumer pocket at this moment, how would it means for our next generation ? Bigger debt than ever ?

Certainly, with such shining profit report, Goldman Sachs undoubtedly stand as current Leader on Wall Street. But dn’t you ever forget that the public has indeed paid a high price earlier on, in government’s effort to maintain Goldman Sachs operations, as well as its counterparts, during the rescue operation.

Comparing to other financial institutions, Goldman Sachs indeed had a much smaller loss. With it’s sharp sense and correct timing ( and guts ! ), Goldman Sachs is still prepared to continue with it’s deployment of what other considered as riskier investment moves, which even venture capitals and other banks had fear to look into.

According to Goldman Sachs, it said that most of its profits are not from the it’s clients account transactions, or betting with their money. Rather, it earns most from its activities as a broker in other fields like currency, bond, equity, and commodity market. These market sectors are mostly unprofitable in good time, but with weak economy situation, these sectors has surprisingly become the main profit generators !

Also, as the competition in the industry has somehow decreased to certain extend, financial institutes that still has the muscle would then be able to deal with those Fannie Mae and Freddie Mac mortgage securities issued, for a god profit margin of 10-15 times. Surely, as a trading institution, Goldman Sachs would of course quick ( and gladly so ), to seize this opportunity from other financial institutions whom are now much weaker and unable to move quickly and effectively, like the now faltering Citigroup and UBS . At the same time, Goldman Sachs long time main rival Morgan Stanley is also unable to move on for expansion, which Goldman Sachs would gladly see so, and continue to grab those opportunities which previously had to fight for

With such shining profit report card, Goldman Sachs has boldly came up with 11.4 billion U.S. dollars for compensation and benefits packages ! This sum is shockingly more than the amount before the turbulent first half of 2007 !

Had it forgotten ? If there were no Government-provided capital which took from the public, debt guarantees and rapid changes in the approval for the commercial banks, it was almost unsustainable. Now, it appear to such shameless move by Goldman Sachs to even dare to propose huge payout packages for its staffs.

Is the current economy situation really bottoming out ? Are we seeing real economy bounce yet ? For Goldman Sachs to make such huge payout package… … This is really, truly outrageous !

Hey, DON’T Burn Our hard earned MONEY with your luxurious sport cars !