U.S. Accuses Goldman Sachs of Fraud [update]

Originally posted by blood0fheroes
reply to post by Light of Night

 

I think the government needs to step in and.....

Lets stop right there. Im rather fond of the way Einstein put it: " You cannot solve a problem with the thinking that created the problem."

Government intervention not only does not work, it does so poorly. Consistency is only a virtue if youre not a screw-up. Government intervention is what has gotten us into this mess.
Intervention in free trade, in housing, in medicine, and in schooling to start with just a few.
Even if one assumes that they do so with the most honest, and upright intentions. As the old saying goes: "The road to hell is Paved with good intentions"

IMHO, the only reason they are pointing the proverbial finger now, is to divert attention away from their own mistakes.

goldmann sachs IS the government

reply to post by projectvxn


Thanks for adding the link. Most people fail to realize the circular nature of the monetary scheme and the devices used to redirect revenue flow.

damwel,

Insofar as what Obama, McCain, etc have to do with this.... technically, they all share the responsibility to use the influence of their office to protect the American citizen from threats such as those presented by an entrenched monetary monopoly. As contemporaries I can safely say that they all failed equally.

Capitalism requires a transparent oversight mechanism and measured oversight of trust; which is precisely what every piece of legislation seems to entangle and contrive to obfuscate.

It's all about personal consequences. The 'gamesters' face none.

[edit on 16-4-2010 by Maxmars]

reply to post by alienesque

This, is exactly my point.

Second line.

Originally posted by blood0fheroes
reply to post by alienesque

 

This, is exactly my point.

Second line.

..and a very good one it was too....

You say Bush gave the greenlight to wall St. Look at the Obama administration.
HIS WHOLE ADMINISTRATION IS WALL ST. Gietner, Emmanuel, Summers, Pinetta et. al. You have to look at reality Obama gave the biggest bailouts to the most industries with little reprocussion.

Every once in a while they'll throw a sacrifical Lamb on the flames, Maddof, CEO of GM, now it'll be some clown at Goldman. Point is its just enough to make it look as if they care. Then the same operations and practices are pushed to the limit behind closed doors.Obama ain't cleaning up a thing, just making good public relations.

reply to post by ISHAMAGI


I believe that is wrong, but we will see, one way or the other.
There were, for example, no Anti Tust actions by the Bush Justice Department. None. We'll see what Obama's JD does.
Do you think it was practical for Obama to defy the PTB immediatly after taking office?. Of course he will compromise, and sometimes lose.
Wall Street is a powerful enemy, Goldman Sachs is probably the most powerful of all.
Does any of this excuse Obam being in bed with these guys. No, ofcourse not, but it ain't over until it's over.

The SEC had to prosecute a big case for PR because they failed so epicly with Madoff and other systemic failures from the 1990s until it all came down in 2007-08. They were under close watch and there was even talk of them being closed down and giving their power to another agency. This wasn't just the media condemning them either, the idea was being kicked around in congress. They also might be trying to make sure and get their name in the press more and get public support because of the legislation in committee that would give the federal reserve more power to regulate the financial firms, which could be used to fade out the need for the SEC over time:

...it looks increasingly like any financial services legislation that Congress passes this year will give the Fed much more power. "It's almost inevitable, even though there's a lot of dissatisfaction with the Fed," says Craig Pirrong, a finance professor at the University of Houston.

Christopher Dodd (D-CT), the Senate Banking Committee chairman, has been among the Fed's loudest critics. Legislation he put forward in November would have stripped the Fed of much of its authority by blocking it from supervising banks.

But Dodd's newest proposal, which he introduced at a news conference Monday, would give the Fed a bigger role than it currently has. Not only will it continue to regulate banks, but it will also start looking over the books of other large financial institutions. And it will be given new powers to protect consumers.

article

From what I've read workers at the SEC are incompetent, and some are possibly corrupt. Even if they are smart and honest they have an incentive NOT to prosecute big firms because most of them go into the private field after a short period at the SEC because it pays much better. If they prosecute a big firm they will be disliked, not too mention with the amount of money involved they could be targeted by someone involved.

Interesting to see how this develops, flagged for the entertainment.

Edit: for poor wording, and to say that maybe Chris Dodd got paid off or threatened? But I guess thats another thread...

[edit on 16-4-2010 by time91]

reply to post by time91


Good Post

Most correct in everything you have said.

IMO this is "old" news, but this was quite a popular move as well so it made it easy for BObama to make this happen

reply to post by time91


Workers at the SEC are underpaid, given their position and the field in which they work. Think about it. A high paid SEC employee might make $150k a year and they are tasked with overseeing and monitoring guys making millions. All the SEC employees want is to do their time and then get a job at one of the firms they've been monitoring. No different than a lawyer working for the DA's office and then jumping ship and defending criminals for much more money.

Are they corrupt? There's corruption everywhere, I'm sure some SEC folks are corrupt, just as some policemen, doctors, politicians (ok, they're all suspect) etc are.


This suit against Goldman is nothing more than a means for the government to get some well needed bail out money from a source holding cash. Goldman won't be dismantled. They're too big to be shuttered. They control too much of the world's financial positions. Instead, the US, in need of cash, slaps a suit on them and Goldman will settle it for ten billion dollars (or some other amount that is meaningless to them) and the government will claim a win and have some extra cash to repurchase more subprime crap from Goldman.

The whole system is a joke at this point. Sadly, we're not in on that joke.

DJIA down $144.
Just sayin.

I like how in the article it states that " Goldman Sachs, which emerged relatively unscathed from the financial crisis...."

Well there is a very good reason for that ...and simply thats because they were behind it !!

Its about time these criminals are exposed.

If you or I so much as to break the law by merely getting caught exceeding the speed limit while driving, we have to pay the courts system AND the insurance industry.

Then Why aren't these Bailout Money Tit sucking criminals held accountable?

Why because the Banking money runs this country , that is why.

Especially in light of the current US home foreclosure rate which is 35% higher than last year at this time.

I have been saying all along that Goldman was instrumental in all of this mess here in the US as well as in Greece, which was another Goldman orchestrated scam capitalizing on "forecasted" exchange rates of the Euro used to finance Greece's debt.


They were behind the collapse and subsequent bailouts of AIG and received most of that bailout money for that matter.

Expecially in light of the fact that the root cause of this entire mess were the fraudulent mortgages, that were designed to be unsustainable leading to default, of which Goldman had hedged their bets against via the derivatives written and held by AIG.

When Elliot Spitzer attempted to expose the beginnings of this entire debacle beginning with the fraudulent mortgage underwriting in New York state, he was expeditiously silenced.

Silenced in order to allow the scheme, to follow its course.

Anyone look at the bonus money handed out at Goldman this year ?


That is your tax Dollar financed bailout money !

They need to give it ALL back now.. and use that money to help us rebuild our country and not further concentrate the world's wealth in only 2% of the population.




On the GOLD, remember Options expire on the 3rd Friday of every month. Simply put, More sellers than buyers brings the price down.

[edit on 16-4-2010 by nh_ee]

I have to laugh at most of this. It has been repeatedly stated our fiat currency only holds the value we believe it to hold.
I think it is a telling addiction that more people have nt come to realize all of this machination is based upon OUR BELIEF IN THE SYSTEM! So what happens if at some point folks just stop playing their game?
In 05 I went from being worth over a million of their dollars to completely disabled over a 3yr period due to inability to be insured (pre-existing conditions) and then the real estate crash removed what little I had left from that. I have watched from the ruins of former A+ credit as those responsible for the social conditions I am in not only be preserved from ANY responsibility by the fictitious entity called the corporation and then get MY money to prop them up when they have failed.
Everything has gone to the thieves and the victims are left with ruined credit, no assets and a bill their grandkids cannot pay.
So now at this point I have seen through the lie of this non-money and know it is about like monopoly money. I am shifting every day to more and more barter of services and goods and my goal is to eventually fore-go using the false currency. At this point I have quit paying any taxes I can avoid on goods and will quit filing taxes at all this year.
My point is it is only their game while we play. Quit playing the game and they are without any power.
The big question is how many of you have what it takes to quit playing?
N.

reply to post by blood0fheroes


I know what you are saying, but in order to have some kind of stable economy there has to be a level of government regulation.

I understand what you are saying and agree. But bankers have been screwing people over since the beginning of time. Financial institutions are one area that free markets do not work well at all.

reply to post by Crakeur


Most of my information I got about the SEC was from reading a few books about the massive fraud in the financial world in the 90s until now. My dad is also a banker (unfortunately we aren't among the 'elites', and my last name isn't Rothschild). I read the book by the Madoff whistleblower (Markopolos, No One Would Listen) and it is a first hand account of the incompetence in the SEC. They investigated Madoff after he(Markopolos) sent them pages full of red flags and proof Madoff was lying about what he was doing. In 2007 they checked his books and interviewed him and discovered he was lying. However all they did was give him a small fine and basically report back "we have no clue what is going on".

It is also sad all the accounts in the book of what we would call the 'elites', as well as common investors intentionally blinding themselves to what Madoff was doing. They put blind faith in his operation and ignored all warnings of possible fraud. It was implied in the book that even Prince William and other nobility in Europe put some money with Madoff.

Markopolos ended the book by saying that the only way to end industry wide fraud is by allowing rewards for whistleblowers who come forward. Hopefully someone will reform regulation this way, but we all know that won't be allowed.

It is definetly "go-time" between the Obama administration and Goldman Sachs.

It takes a lot of courage...G-S does not mess around and to say they weild significant power and resources is the understatement of the decade.

Without a second thought Goldman Sachs collapsed a nations economy just to make a profit.

the fact that they have the resources to make a play like that scares me.

The fact that they would do it without a second-thought terrifies me.

Fed To Examine Goldman Role In Greek Debt Crisis

U.S. officials are looking into the role that Goldman Sachs and other big banks played in the ongoing debt crisis in Greece.

The company has been accused of helping Greece conceal its financial problems from investors and regulators. It also may have helped aggravate the country's fiscal troubles by helping investors bet on the possibility of a default through the use of complex financial instruments called credit default swaps.

As the Greek financial crisis lurches from bad to worse, some European officials have complained that part of the blame lies on this side of the Atlantic. Evidence emerged at a Senate Banking Committee hearing on Thursday that the allegations are being taken seriously.

www.npr.org...

(1) They talk to the Greek government and encourage and help them to hide the warning flags that the Greek economy was about to fail.

We are here to help...don't worry about it

(2) They then place huge bets that the economy would fail..

(3) Let the world know that the Greek financial system is teetering on collapse and let market forces do thier thing.

These guys make a James Bond villian look like Mother Theresa...Seriously.

This is absolute financial doom.

Seriously, get ready for 2008 again x10.

A guy predicted this on a rival site. He said when the dow hits 11k, the goldman fraud would be revealed, and the entire house of cards would come tumbling down.

That source was high school buddies with a big wig at GS. He made a post on the 4th of april, and said they were frantically shredding papers. He said it's all over.

My advice:

Stock up on ammo and food. If you have no gun, then stock up on guns ammo and food.

linky


www.godlikeproductions.com...

So I just talked a buddy of mine from High School, We're Both back intown for Easter. We bumped into each other in a local Bar.

I'm Now a Private Detective, (Former U.S. Marshal) and he (We'll call him, Oz) Has been working on Wall St since 2002 when he graduated College.

Oz works for a Large Wall St. Company (We'll Call "Silvergirl Bags") Now Oz is by no means a Big Shot at "Silvergirl Bags" but he's also NOT a Mail Boy.

Oz has informed me, that he spent the last 72 hours he was in New York, SHREADING DOC's with about 10 other fellow "Silvergirl Bags" Investors.

Oz has ALSO informed me ALL the big shots are CLEARING OUT OF TOWN FOR AN EXTENDED STAY.

Oz told me he has the feeling, Nay, The Information that over the NEXT 3 weeks, the Economy & Stock Market are going "GROUND FLOOR"

Oz, has told me he plans on going back to New York on Tuesday morning to Clear out his Appt.

Oz has told me "Silvergirl Bags" is and has been INSOLVENT for the past 16 months.

I asked Oz: "How can this be??? You've been making 100,000,000.00 a DAY for over year??"

Oz Responded: "The Money has been LOOTED and EVEN THAT MONEY WAS NOT ENOUGH TO COVER "Silvergirl Bags" Toxic assests.

At this point in our conversation Oz began to Well Up. (Oz had CLEARLY been drinking for quite some time) and then Oz simply up and walked out.


Well, That mu story.....

[edit on 16-4-2010 by downtown436]

reply to post by nh_ee


EDIT: Maybereal11 just beat me to it, above. Oh well.

Goldman was involved with Greece by using their accounting tricks to make Greece's economy and debt look better than it was. It could make the entire European economy come undone, by causing a domino effect of debt. Other countries will try to bail out Greece and go into more debt, then on and on and eventually their will be more debt than money because of interest. This will cause the global ruin of the monetary system if it goes all the way (I doubt it will). But if it does we will probably be offered a solution from the world bank/ IMF that will convert everyone to a centralized global economy controlled even more by the banks/bankers than it is today.

[edit on 16-4-2010 by time91]

The Goldman Sachs allegation of fraud was not hard to predict. The cause? Start with the repeal of Glass-Steagal regulation that previously separated banking from investing. Then, as pointed out in another member's thread on G-S, what about G-S involvement in the Great Depression: G-S came out of the GD wealthier than Midas. Another member here aptly added how the "dislike" for Obama has nicely diverted attention from how the big boys are robbing ordinary folks of everything they have. Can it be doubted that the political divisiveness out here in the heartland has worked to the advantage of big money? Can we ordinary folks, at least for a while, work together to clean up this mess?

U.S. Stocks Drop as SEC Sues Goldman Sachs for Fraud on CDOs

Oil under $83 as stocks slump on Goldman news

Interesting turn of events indeed. Will this 'bloody monday' all over again?

reply to post by mecheng


Hello, new here but wanted to add that its expiration Friday so the dip in the DOW might be because of option contracts being bailed on. I think OP topic needs to escalate before a reaction in the market firmly takes hold.