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Goldman Bundled Bad Debt, Bet Against It and Won
- Thread starter traderum
- Start date
Quote from the1:
<i>All that remains to be seen is whether the SEC and the FBI are âGodâs workersâ, or whether they see their job in simple âreal lifeâ terms as protecting ordinary Americans as well as foreigners who invest in America from those who claim to speak for God.</i>
The SEC will do nothing about this because GS has already infiltrated the SEC. The FED and SEC act to serve the banking system much the way the FDA acts to serve the pharmaceutical industry. These Government Regulatory bodies become occupied by executives from the firms they are in charge of policing. With that kind of conflict it is impossible for these agencies to serve in the way they were designed to serve.
That's unfortunately a reality in the US.
Key decision making positions in the US are in the hands of some people who serve someone else but the US...
Count SEC and nearly the whole intelligence idiots to it as could be seen again a few days ago, and on 911...
BTW, on Tuesday these people must give rapport to the president...
The Goldman salesman said that C.D.O. buyers were not misled because they were advised that Goldman was placing large bets against the securities. "We were very open with all the risks that we thought we sold. When you're facing a tidal wave of people who want to invest, it's hard to stop them," he said.
OK..so why would any smart investor BUY these things if they KNEW that goldman was making large bets against them?...one of the largest banks/ investment firms in the world.
That story seems to have holes in it, imo.
like the article said. they created these cdo's then betted against them...like buying a house, buying the insurance against it, and lighting it on fire...except they get away with it.
very unethical if you ask me.
The fact that 100 billion+ of these deals were done with no market regulation is just shocking.
OK..so why would any smart investor BUY these things if they KNEW that goldman was making large bets against them?...one of the largest banks/ investment firms in the world.
That story seems to have holes in it, imo.
like the article said. they created these cdo's then betted against them...like buying a house, buying the insurance against it, and lighting it on fire...except they get away with it.
very unethical if you ask me.
The fact that 100 billion+ of these deals were done with no market regulation is just shocking.
Quote from konviction:
The Goldman salesman said that C.D.O. buyers were not misled because they were advised that Goldman was placing large bets against the securities. "We were very open with all the risks that we thought we sold. When you're facing a tidal wave of people who want to invest, it's hard to stop them," he said.
OK..so why would any smart investor BUY these things if they KNEW that goldman was making large bets against them?...one of the largest banks/ investment firms in the world.
That story seems to have holes in it, imo.
like the article said. they created these cdo's then betted against them...like buying a house, buying the insurance against it, and lighting it on fire...except they get away with it.
very unethical if you ask me.
The fact that 100 billion+ of these deals were done with no market regulation is just shocking.
The buyers were 'advised' to the extent of those boilerplate 'This investment has risks' statements in every single investment product prospectus known to man.
I know. There's a great deal of sarcasm in there. Every crisis results in more handcuffs for the small time trader so it's likely this one will result in the same. Not a damn thing will happen to change the behavior of GS but you can bet your trading account that something will come down the pipe to slow you and I down.
Quote from traderum:
It has nothing to do with daytraders.
Of course they "played" many in the planned and continuing financial grid take down.......... http://www.youtube.com/watch?v=VebOTc-7shUQuote from traderum:
An interesting New York Times article about the dirty practices of Goldman Sachs:
http://finance.yahoo.com/banking-bu...banks-bundled-bad-debt-bet-against-it-and-won
I suppose it's inevitable that Corporatism follows Capitalism.
Quote from traderum:
That's unfortunately a reality in the US.
Key decision making positions in the US are in the hands of some people who serve someone else but the US...
Count SEC and nearly the whole intelligence idiots to it as could be seen again a few days ago, and on 911...
BTW, on Tuesday these people must give rapport to the president...
This is one of the most depressing yet most important video series a person can watch. Every citizen in the country should be required to watch this at the same time. I'd bet about 1/2 of 1% of the country has watched it.
Quote from AMT4SWA:
Of course they "played" many in the planned and continuing financial grid take down.......... http://www.youtube.com/watch?v=VebOTc-7shU
The problem goes deeper than a crooked rating agency giving repackaged junk AAA ratings.
It all starts, and I am amazed that a lot of very articulate people around here miss that entirely, with government trying to play the paternalistic role more than necessary (read Milton Friedman for more info on government's role in the society). It all starts with some pension funds losing money to some crooks, and government deciding to protect all other pension funds from that happening again. The easiest way is to regulate, and a regulation is passed that pension funds can only invest in AAA-rated securities. But rates are low and not may AAA-rated securities are around to generate good returns, so the pressure is on to generate more AAA-rated securities, and Wall Street is happy to oblige, and rating agencies are playing along, and everybody is happy until the shit hits the fan.
It's really very simple, even though counterintuitive - less regulation is better than more. Sure, there will be dead bodies along the way, but no major disasters, and that is the best that can be done.
It all starts, and I am amazed that a lot of very articulate people around here miss that entirely, with government trying to play the paternalistic role more than necessary (read Milton Friedman for more info on government's role in the society). It all starts with some pension funds losing money to some crooks, and government deciding to protect all other pension funds from that happening again. The easiest way is to regulate, and a regulation is passed that pension funds can only invest in AAA-rated securities. But rates are low and not may AAA-rated securities are around to generate good returns, so the pressure is on to generate more AAA-rated securities, and Wall Street is happy to oblige, and rating agencies are playing along, and everybody is happy until the shit hits the fan.
It's really very simple, even though counterintuitive - less regulation is better than more. Sure, there will be dead bodies along the way, but no major disasters, and that is the best that can be done.