Recent news is all about Goldman

• Warren Buffet sees nothing wrong with Goldman Sachs (via @jarennichols)

• Not Goldman, but This American Life does a spot on one company that used the very same tactics Goldman is getting targeted for.  Stream the episode, and make your own decision.  Shrewd or criminal?

• Jason Calacanis isn’t a fan of Goldman, more because of their ‘we didn’t do anything wrong’ attitude than anything, but he makes a good push for a realignment of investment focus that I find intriguing and worthwhile. (via @jason)

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Two quotes from Warren that I find worthwhile

“I don’t care if John Paulson is shorting these bonds. I’m going to have no worries that he has superior knowledge,” he said, adding: “It’s our job to assess the credit.” The assets are the assets. The math either works or it doesn’t.

and

On Sunday, Mr. Buffett said that the case against Goldman seemed to be based only on hindsight.

“It’s very strange to say, at the end of the transaction, that if the other guy is smarter than you, that you have been defrauded,” he said. “It seems to me that that’s what they are saying.”

It seems to me that people just don’t like to be duped.  Should we be able to expect more out of a name that is as prestigious as GS, sure, should we be disappointed when we are taken for a  ride when we don’t do our own homework, sure.  Is it criminal, no.  Is it ethical …

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This American Life, while obviously liberal in its politics, Ira Glass represents a pretty solid middle line report fairly consistently, and in a very engaging manner.  This one was particularly insightful to me, and did much to help me understand the current issues being argued in the media.  From the stories synopsis –

“A hedge fund named Magnetar comes up with an elaborate plan to make money. It sponsors the creation of complicated and ultimately toxic financial securities… while at the same time betting against the very securities it helped create.”

Give it a listen, I’d love to hear what you come out of it with.

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Calacanis is a great eccentric who is entertaining to read.  He makes a great suggestion in light of all the recent drama, boycott Wall Street and put your money into innovation and startups.  Invest in companies doing things that you like and believe in.  In my own experience, my money has come back to me with better returns when investing in myself and young companies I believe in, versus what my IRA has done in the past 5 years.  Some Jason quotes –

“The only thing that will save our country from the death spiral of obscene government spending, unsustainable wars and financial miscreants, is true innovation and value creation. This simply doesn’t happen on Wall Street. It happens at startup companies.

It’s time for Americans to stop feeding the Ferengi and start angel investing.

Place your bets on young people who are building real products and services that solve real problems and delight real customers … Encourage young people going into the work force to forgo the promise of unearned and absurd compensation on Wall Street for the more appropriate and soulful option that comes from creating real value at a startup company. When you meet a young person who wants to go to wall street scold them. Tell them how sad it is that they are going to waste their talents trying to manipulate money instead of creating value. Explain to them that when they look back on their career, even if they are successful, they will see a bunch of transactions and models (they’ve dated and built), but they will never know the satisfaction of having built something real. Something tangible that they can be proud of.”

I support the idea of focusing in innovation and startups, but I wonder how much of an influx of cash it could support?  Meaning if everyone shoved money into startups, billions of dollars even, is there enough good stuff going around to support the influx of cash, and sustain our GDP?  I d’know, but I’d like to find out.