You
Have No Idea How Evil Goldman Sachs Really
Is
 The
following excerpt is by Matt
Taibbi. He's recasting
Sen. Carl Levin's recent report in
plain English. What Goldman did (and, probably,
continues to do) is simple amazingly wrong.
It's like they are a Defense Attorney representing
a client in court against a murder charge while
they are also betting that their client is
found guilty and executed.
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Translating
this into English: Goldman acquired reams of
crappy residential mortgage-backed securities,
dumped them on clients, then bet against 100%
of the deal. But the shocking detail to me
was this bit about pricing: Goldman bought
the crappy securities at X price, then sold
the securities to their clients at another,
completely Goldman-invented price – let’s
call it (X Blankfein) – and then pocketed
the difference. So the bank gouged clients
on price and then turned around and took a
short position on them on the other side.
Then, and this is my favorite part, when Hudson
began losing money, all the investors came
running to Goldman, begging them to liquidate
the deal to get whatever they could for the
crap securities before they lost all their
value. But unbeknownst to Goldman’s clients,
you see, Goldman had that monster short position
on the other side, meaning that the more those
securities plummeted in value, the more Goldman
made. So Goldman stalled and continually refused
to liquidate the deal even as their clients
begged them to get out. The report quotes a
Morgan Stanley rep (Morgan was one of the investors)
who claimed that he was so mad when Goldman
refused to liquidate the deal that “I
broke my phone.” He says to the head
of Goldman’s CDO desk: “One day
I hope to get the real reason you are doing
this to me.”
Morgan Stanley ended up
losing $960 million on that deal. Think about
that next time you consider how much federal
aid both Goldman and Morgan Stanley got during
the bailouts. Morgan Stanley lost nearly a
billion dollars on this one simple, good old-fashioned
ripoff – a straight-up fraud deal. Of
course, the taxpayers ended up paying for it.
I personally don’t see why more politicians
don’t do what Levin is doing. These nitwits
at Goldman are totally indefensible and politically
cancerous. Even for purely cynical reasons – even
leaving out the part about it being the right
thing to do – politicians should be whaling
away at them with stories like this. But they
don’t. It’s hard to figure, even
when you take the campaign dollars into consideration.
=Lefty=
------------
 February
10, 2011: "We're going to have a relentless focus on creating jobs." -
John Boehner.
So far the list of Republican accomplishments for 2011 is:
(1) Attempted curtailing of abortion rights.
(2) Attempted defunding of Planned Parenthood.
(3) Attempted defunding of NPR.
(4) Investigating Muslims.
(5) Declaring English as America's Official Language.
(6) Reaffirming "In God We Trust".
(7) Challenging AARP's tax-exempt status.
(8) Approved defunct funding for failed
religious schools.
(9) Attempt to destroy Medicaid.
(10) Attempt to destroy Planned Parenthood
(11) Shutting down the government
(12) Attempt to destroy the EPA.
(13) Attempting to eliminate financial
counseling.
(14) Passed a House budget that gives $4 trillion in tax cuts to the
rich.
(15) Spend $500,000 to discriminate against gays.
Nope. No job creation here. Move along. Move along.
I'll keep adding to this list until the Republican House does something
to create jobs. I unhappily predict this is gonna be one lonnnnng list.
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