Goldman, according to reports, made at least 3.7 billion dollars shorting the market and betting against its own clients. More shady deals besides the Abacus swindle are only now being uncovered. I am sure that you are aware of how the con went down: Goldman handpicked and assembled the most toxic mortgages they could find and packaged them for billionaire investor John Paulson, all betting that they would take a disastrous fall. Found an arms length middleman ACA, so that they could be protected from the stench. A German stooge, IKB, played the fool in the operetta. Or the pigeon.
Blankfein's protestations of innocence of late have been pretty weak, the stupid yutzes should have known they were getting shtupped, they were big boys, we were just an innocent third party hedging our bets, etc.. But according to Tourre's emails, he was instructed to find unsophisticated clients to peddle the trash to that wouldn't ask too many questions.
Today the Senate Republicans, in perfect goose or lockstep, rallied around their great leader McConnell, in hopes of derailing financial reform. They blocked debate on the bill. We can't hurry or rush to judgement now, can we? Recent polls show two thirds of the American public supporting the new financial regulations.
Apparently the banks are worried about losing the derivative golden goose, which brings about 20 billion large to them every year, even if it is concocted out of unadulterated horse shit. The Administration has proposed that the banks pool money and subsidize the next big bailout themselves, a proposition that has raised a hue and cry from their GOP cronies and enablers.
The republicans, those recent champions of open government, want to keep all of the negotiations behind closed doors. I don't really blame them, as unseemly as it looks when they do their master's bidding. Senator Judd Gregg accuses the democrats of overreacting to last year's devastating collapse. Soon we will start hearing again about the dangers of regulation. Payday lenders are worried that they will finally have to play fair. Repubs and their pals at the U.S. Chamber of Commerce are shaking in their boots at the prospect of a Consumer Protection Agency.
The dems have been on the take for plenty of Goldman and industry gelt themselves, the boys spreading the lucre wide and thick. Today Nebraska's Ben Nelson voted against the reforms after apparently getting a call from stalwart citizen Warren Buffet, who would have to pony up a pretty penny to insure his derivative holdings if the new reg's go through.
Once again we see how certain politicians play lip service in regards to financial regulation. Have we learned anything from last year's fiasco?
Not a damn thing.
