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Idaho's Weekly Journal of Local & National Commentary  Week 3014

 

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by Free Market Duck

Goldman Sachs creates subprime slime with left hand, shorts subprime slime with right hand
(Dec 18, 2007)

Conflict of interest?

New York, NY According to the WSJ, Goldman Sachs mortgage department was a major underwriter of complex bundled securities of subprime mortgages.  When those securities plunged in value this year, Goldman's customers suffered major losses, as did units within Goldman's banking and investment group.

   However, simultaneously down the hall, Goldman was busy "shorting" billions of dollars of these same subprime slime securities, betting that their value would fall.  The big question is:  how could Goldman legally peddle subprime slime to their customers while their own traders were busy betting that bundled subprimes would collapse?  If this isn't a conflict of interest, then what is?

   This is not free market capitalism, folks.  This is collectivist interventionism in which our central bank, the Federal Reserve -- whose previous Goldman Sachs management include Fed Chief Ben Bernanke and U.S. Treasury Secretary Henry Paulson -- injects billions and billions of non-backed dollars into their buddy-buddy member banks so the bankers can create more and more exotic monetary instruments such as bundled subprime mortgages, and rake in billions and billions in profits by simultaneously selling their subprime slime "long" and "short."

   Welcome to Wall Street, America's new gambling casino where the Federal Reserve provides trillions and trillions of our worthless National Toilet Paper for their friends to place bets at the Craps Table, betting simultaneously on the Come and Don't Come. -- FM Duck

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