Posted by Jany on April 27, 2010 at 14:48:10:
In Reply to: US Sues Goldman and Paulson - book sure to follow posted by Jany on April 16, 2010 at 13:06:13:
This morning, I'm watching the senators grilling the Goldman guys live on TV. The Goldman guys just keep saying they broke no laws.
The senators are saying, but what about ethics? What about responsibility to your clients?
The Goldman guys have no response to such questions. In fact, from watching how they respond, it is clear it never even occurs to them to think about such things as ethics or responsibility.
What is very clear from watching the hearings is that these guys are smart, but they have no heart. They are cold, goal-oriented men who only care about making money and getting plaudits from their cohort for being clever at manipulating the system. They don't even think about who might get hurt. It's not relevant to them.
This is not about Goldman, it is about what is going on on Wall Street. We already knew how Wall Street works: stock brokers try to unload crappy stock on unsuspecting clients just to make a commission. But now we are learning it's gotten even worse that that: now they are going short on the very things they are selling us.
Most importantly, these hearings are making it very clear these men have no regrets about what they have done to hurt all of us while they made their millions. As a result, they will be sure to do it again the next time they get the chance.
The only solution is tighter regulation and oversight, but the Republicans won't allow that so it will just go on and on.
: From today's New York Times front page: U.S. Accuses Goldman Sachs of Fraud.
: Seems that Goldman Sachs (with its VERY close ties to the government) was selling worthless mortgage-backed securities to the public, pumping them as a GREAT investment, while they were secretly shorting them. It proves they knew what they were selling was worthless crap. They made a tidy profit of ONE BILLION DOLLARS on the short sales and they payed themselves millions of dollars in bonuses for being smart enough to put one over on the American people.
: While all this was going on, guess who was the US Secretary of the Treasury: Hank Paulson, the former CEO of Goldman.
: It appears that everybody on Wall Street, and in the rest of the financial community, learned a powerful lesson from ENRON; they learned the RIGHT WAY to run a 21st century business: sell the public worthless crap, while you secretly rake off all the cash in the background. Oh, and maintain the BIG LIE (through PR) that everything is great.
: But Goldman has an advantage Enron didn't: close ties to the government. When Paulson was Goldman's CEO, he went before congress to convince them to relax the rules on selling leveraged derivatives. Congress complied, and the race was on to make as much money as possible before the derivative house of cards collapsed. Paulson's reward? One billion in cash, plus an appointment to be the new US Secretary of the Treasury.
: By now, everybody knows they were ALL involved in selling worthless derivatives. What we didn't know, was that companies like Goldman were making EXTRA billions by shorting the crap they were touting to the public as wonderful investments.
: This scandal is sure to spread. I'm sure Goldman was not the only outfit doing this kind of thing.
: Even then, it will probably take at least four or five years before some insider writes the book about what was REALLY going on.
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