Monday, April 19, 2010

In Greed we trust

These guys must think we're total fools. I now hear that the entire SEC case against Goldman centers around the word "selected".
Hello! Anybody with a third grade education could tell you this was fraud plane and simple. Let me see. You create a mortgage with questionable information. Many were done with no income verification. Don't worry about checking the books of the self employed you can trust em. Then there's the valuations of the properties. Nothing like inflating the value of a property when it's your bank that pays for the apprasial. Need 125% loan to value? No problemo. Can't even afford a down payment? Again no problemo. If you get in trouble we'll just add any shortfalls to the end of the loan after we've redone the paperwork and collected our additional fees.
Selected? Ya there was selected. We've selected anyone dumb enought to fall for this crap and get them to sign. The investment firms who sold this bundled joke for an investment had to know what they were doing. Hell I even knew what they were doing and I'm no investment whiz. They'd like us to think that they didn't have a clue that this stuff was garbage. Humm? Does anyone remember "junk bonds"? Ah yes those wonderful pieces of toilet paper that were sold in the 80s that brought down hundreds of savings and loans. And once again the sharks circled and bought up the S&Ls that had assets while the taxpayer got stuck with the bill. Nice way to make a living if you have no morals.
This time is a bit different. Their little game has gone global. But this time they've ticked off entire countries. I now hear Britain and Germany may be lining up with their own charges. You guys at Goldman just keep playing dumb but I think this time around you're going to get burned. You'd better have stashed a whole lot of cash in a Cayman account because this time just may be a little bit different.

Now there's a big hoopla about putting in place new rules. Got news for you boys you don't need to sit down and come up with anything new. We had rules in place to prevent all this for the last 60 + years and they worked quite well. That is until you threw them out the window. Kind of like watching a football game and then all of a sudden they announce that all the refs are leaving the field. But who are we to complain when caged ultimate fighting has become so popular? This has become the Rollerball of Wall Street sans rules or time limits. The best they can do now is stall for time because the refs are coming back in the game and they'll have an ample supply of penalty flags.



Tim said...

Hey Demeur
So even if they reinstate the Glass Steagall Act, Once Republicans regain power it could be repealed again. I guess I'm just down in the dumps. Damn righties want to repeal everything.

an average patriot said...

Bush did all this through Greenspan. I remember when I bought my first house you needed 20% down.

Bush use to say everyone can own a home and the American dream. BS they can. The American dream thanks to bush has turned into a nightmare for many.

Demeur said...

The American dream of buying a house turned into the great American nightmare of foreclosures. I'm seeing more and more in my neighborhood. Last week there was a police standoff just down the street. This is an upscale neighbor.

Fear not Tim we will get through all this.

Tom Harper said...

From what I've been reading, there are now so many threatened lawsuits against Goldman Sachs, and many more to come, that it hardly matters whether they get convicted or not. Their teflon coating has been penetrated and they won't be as invincible or unaccountable as they have been. Or maybe I'm just too optimistic.

Demeur said...

Tom the real issue there is if foreign governments can persue a case against Goldman without looking like idiots and incriminating themselves.

S.W. Anderson said...

Your headline and first sentence nail it; the rest is a bonus.

The one thing I've been reading and watching news reports for, but not seeing, is an explanation of why the case against Goldman Sachs is a civil action and not a criminal case.

Randal Graves said...

I didn't cheat on my wife, I selected an additional partner.

Wow, this can be applied to everything!