More evidence that the economy is recovering: Goldman Sachs reports big earnings

[PhiGam]

http://finance.yahoo.com/news/Goldma...-14913483.html

Goldman Sachs, in another sign that banks may be turning around, beat Wall Street's earnings expectations as it reported a profit of $1.66 billion for the first three months of this year. The bank also said it planned to raise $5 billion in stock to help it pay back government bailout funds.

The New York-based bank said it earned $3.39 per share, easily surpassing analysts' forecasts for profit of $1.64 per share. This compares with earnings of $1.47 billion, or $3.23 per share, in the quarter ended Feb. 29 of last year, and is a huge improvement over the $2.29 billion Goldman lost in the fourth quarter.


Goldman's news, released a day earlier than anticipated, came days after another top-performing bank, Wells Fargo & Co., said it expected to report record first-quarter earnings of $3 billion, well above Wall Street's estimates. That news fed a huge stock market rally Thursday, but with companies including Citigroup Inc. and Bank of America Corp. still to report their first-quarter results, it's too soon to say the banking industry is indeed finally recovering from the devastating losses caused by the credit crisis and the recession.

[PeppyGPhiB]

Many economists would say the author of this article is hopelessly naive.

[Thetagirl218]

What I don't understand is how can they report a gain when they are technically in debt to the US government?

[AGDee]

Michigan's unemployment rate jumped to 12.6 percent in March, up from 12 percent the month before.

The state's unemployment rate has risen over the past year at a faster pace than any 12-month period since 1980. A year ago, it stood at 7.5 percent -- a full five percentage points lower.

*Keep in mind, unemployment rates only count the people who are still receiving benefits. Once you drop off of that role or if you are underemployed (find a job working 10 or 20 hours a week at a reduced pay), you don't count either.

[Munchkin03]

My friends are still losing their jobs, even the ones at Goldman.

I know this is hard for a lot of us, since our generation demands instant gratification, but we're stuck with this here Great Recession for a while.

[KSigkid]

Originally Posted by Munchkin03

My friends are still losing their jobs, even the ones at Goldman.

I know this is hard for a lot of us, since our generation demands instant gratification, but we're stuck with this here Great Recession for a while.

That's what I'm hearing as well; I've had a good number of friends who had their start dates pushed back at their firms from September until December or January. A couple got offers to push back until September 2010, with a stipend and help in securing public interest jobs in the interim. Plus, a bunch of firms have cut their summer programs by as much as a third.

A couple of places even have given their summer associates word within the past week or two that they couldn't hire people for the summer. So, some people are stuck without a job, and with very few options.

I won't believe there's progress until I see it, and I definitely don't see it.

[knight_shadow]

JPMorgan Chase is reporting better-than-expected profits, as well.

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