Buffett and Goldman Team Up to Help Small Business

Seriously, though, I just want to help you out.

I hear and see a lot of conspiracy theories out there about Goldman Sachs.  More than any other investment banks or companies, I think GS might be the most scrutinized, talked about, and hated organization this side of the New York Yankees.  In a distractionary move disguised as benevolence (j/k), Goldman is teaming up with Warren Buffett to fund loans for small business owners.  The two are teaming up to provide $500 million for small business owners – both as access to capital and to further education.

I firmly believe that these are the kind of actions that will actually be effective in stimulating the economy.  Businesses and business people require support, which means they’ll spend more money on supplies, raw materials, attorneys and accountants.  Aside from the possible jobs that the businesses directly create, they indirectly create jobs by creating demand for all of these ancillary services.

I think Buffett is on the right track here.  This is a market solution of sorts.  They’re calling this a “philanthropic” effort.  I’m not sure what the terms attached to the capital or the educational funding are – but they sound like they’re pretty nice based on that word, philanthropic.

This appears to be part of an effort for Goldman to clean up their image post-bailout.  Wall Street’s extravagant salaries in tough times are exactly endearing to the general public.  They’re already being criticized for offering too little.  Having their name in the headlines with Buffett (who’s officially their largest shareholder) can only help them.  His squeaky clean brand is just the sort of thing Goldman needs.  Initiatives that help this country out of a tight spot, like this one, is icing on the cake.  Thanks for reading.

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Tagged as: Buffett, Darth Vader, economy, Evil empire, executive compensation, Goldman Sachs, New York Yankees, small business, stimulus, Wall Street, Warren Buffett