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Friday, August 17, 2012

This Is Mind Boggling!!!

Here is a single paragraph from the August 24-31, 2012 issue of The Week magazine.

"Goldman Sachs won't face penalties for allegedly misleading investors in the run-up to the financial crisis, said Phil Mattingly in  A Senate subcommittee concluded last year that Goldman had sold complex mortgage securities to its clients while secretly betting those securities would lose value.  But the Justice Department said last week that it would not pursue criminal charges against the bank because the "burden of proof" had not been met."

Let's review briefly what happened here.  A Goldman customer, John Paulson, came to Goldman and asked the bank to assemble a number of portfolios of mortgages that were sure to fail.  And that is what Goldman did.  But here is the good part!  Paulson then sold the packages of mortgages SHORT since he knew they would fail to be repaid.  Hang On, It Gets Better!!  At the same time Paulson was selling the packages short, Goldman was selling them to other customers of the bank as LONG bets.

Kerisssstt.................How crooked can you get????

What do you suppose would happen in Las Vegas if a poker player (Paulson) got caught with a marked deck?

What do you suppose would happen in Las Vegas if the dealer (Goldman Sachs) got caught with a marked deck?

Now suppose you are in Las Vegas playing poker with the house dealer and one other player, and both of them have marked decks.

Does the word SCREWED come to mind?

There is an old saying amongst poker players. "Look around the table to spot the sucker in the game.  If you can't, it's you".

And "the burden of proof" has been met????  Everybody in the world knows what happened.  Books have been written about it.  Michael Lewis' "The Big Short" is the best. 

So look around the room wherever you are now, and know that you and everybody else in the room (and me) are the suckers.

I could forgive Obama just about everything if just ONE of those crooked sons-of-bitches on Wall Street had gone to jail!!!!! 

I would even settle for having ONE of them indicted!! 

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