"Goldman was the only major Wall Street firm to safely exit the subprime mortgage market. however, that Goldman sold off more than $40 billion in securities backed by over 200,000 risky home loans in 2006 and 2007 without telling investors of its secret bets on a sharp housing downturn, prompting some experts to question whether it had crossed legal lines."
Now for some definitions
Short Selling: selling a financial instrument without actually owning it. The purpose is to drive down the price. It is a way to manipulate the market and is illegal under SEC rules. Some people claim it's a benign practice but used over and over to artificially drive the price of a financial instrument down can be destructive. Again this is the process of selling something YOU DON'T ACTUALLY POSSESS. Kind of fuct.
Hedging: Off setting your exposure in one market but taking an opposite position in another market. This is what Goldman is accused of doing. By helping to create and promote the credit default swaps that became the toxic assets key to the meltdown and the betting that those very securities would lose value they hedged and won big time. Additionally, they received back 100¢ on every dollar they invested in other toxic assets, because of the AIG bailout.
Now they whole demonic financial system is trying to demonize Obama as anti-capitalist, anti-market, and anti-investment. They (anyone who doesn't share my views) sucker punched Obama on healthcare will they do in again on finance?
You're asking IF they'll sucker punch him on finance? IF? Pretty sure the question is "how hard". So much greed for short-term pocket lining, so much disregard for long-term happiness of the human race or the American people. Of course they're going to giggle themselves to sleep trying to pin it all on Obama (or more likely, Obama's financial advisers, most of whom came from the Wall Street mess - which I can't blame him for, since those dicks are the only ones that understand the mess they made).
ReplyDeleteMeanwhile they'll keep fucking with him, as they sit there and wait for him to fix the crisis so they can invent some new imaginary social threat like gay abortions or cross-stitching, get the government back and return to the business of exploiting all of us to stockpile their gold pieces.