IT HELPS TO HAVE FRIENDS

If there's a Wall Street firm more worthy of your contempt than Goldman Sachs, we have yet to see it.

This is a firm in the back pocket of the Federal Reserve, an advisor to billionaires and some of the world's largest corporations. It is an investment bank that loves to throw its political clout around. Just ask one of the major candidates in the current presidential circus. And see it's position on Brexit where it stands to take a big hit if the yes voters carry the day.

You know, despite their shilling for the fantasy global economic recovery meme, things are tough when GS goes after "cash-cushion" money. This is an haughty 150 year old, stuffy outfit so full of itself that they most likely wouldn't let the common guy step indoors during a downpour. Such rabble would sully the lobby.

Now this arrogant, elitist firm comes sniveling after what can only be called quasi-deposit monies. A recent purchaser of GE Capital Bank's online deposit platform, GS is going after the retail trade. Sort of. And that's what one has to be chary of. These folks aren't your friends by any stretch. Revenue from their investment banking and trading business hit the wall recently. In other words, bad economic times in the long run catch up with all of us.

The excuse floated by their MSM friends is recent tougher regulations. To attract business--see The Art of Coney Catching 18th Century UK literature--their offering high rates, 1.5% on savings accounts, a whopping 1% on CDs and, hold on to your passbook, 2% on five-year CDs, according to the WSJ.

What's the catch? There's only one way to get your money out and at that only six allowed withdrawals per billing cycle is by electronic transfer to another financial institution. No mention as far as one can tell whether these transfers like most things in the investment banking world come with a fee. It's near impossible to imagine two banks involved in a transaction without any fees.

Goldman is trying to catch up with other large Wall Street firms with fairly large deposit bases. Consumers in the eyes of big investment bankers are hardly the smartest people on the planet. Deposit funds are known for being really sticky. Given that and some stringent withdrawal rules and you got yourself a steady flow of low-cost, long-term funds to toy with.

It's a great gig if you can get it. But first you have to get approval from your friends in Congress and at the Fed. But after all, that's what friends are for, isn't it?