Posted on 04/29/2010 6:16:19 AM PDT by SeekAndFind
I turned 43 years old on Tuesday, but after listening to the Goldman Sachs hearing in Washington I felt like I was born yesterday. That's essentially how the Goldman witnesses treated their viewing audience while defending their dubious behavior: You're too dumb to understand the complexity of our business and the instruments we trade. In our line of work, they explained, deceit and double-dealing is expected and condoned on all sides. Everybody has fair warning. So what's the big deal if we sold a "shitty" product without disclosing it was designed to lose money?
But as the day wore on, it became clear that the main misunderstanding was on Goldman's part, and it was a doozy. The firm’s nonstop nope-a-dope strategy--evading questions, repeating gobbledygook answers and ceding no ground of accountability--may have been an effective legal defense against the SEC's specific charges in the Paulson case. But the Goldman team failed to realize that on this day they were being tried in the court of public opinion on much bigger and more serious charges and in front of jury that has been fed 18 months of incredibly damning evidence about junk mortgages, rigged ratings, sweetheart bailouts and obscene bonuses.
The result? Goldman arguably won the narrow battle inside the room on the SEC charges (as the Wall Street Journal suggested). But after hoisting itself on its own petulance, the firm lost the larger war--and any last shred of credibility with the frustrated middle. Indeed, with its condescending, responsibility-ducking performance Goldman showed why it deserved its status as the most hated company in America--and why the anger at Wall Street won't really dissipate with the expected passage of the financial reform bill now in the Senate.
(Excerpt) Read more at forbes.com ...
RE: Goldman execs’ pathological behavior dooms them in the court of public opinion
Would public opinion matter as long as you’re making your millions in bonuses ? I know a lot of people who could care less.
The only thing that gets the attention of these toords is a frog-march perp walk followed by some time at Riker’s talking with Bubba.
Pure wishful thinking.
The Democrat Senators on that committee made complete asses of themselves. Screaming over the witnesses and pompously posturing for the camera make the Dems look like complete stooges.
They managed to remind the average joe of everything they loath about these pompous arrogant Congress clowns.
Just because the Democratic Senators couldn’t understand the answers, that doesn’t make the answers gobblydegook. People like Carl Levin couldn’t understand what makes snow melt.
Bingo. I didn’t watch the hearings, but reading the column makes it appear that Gerstein is “mad” that the arrogant, self-serving Goldman execs had the audacity to be so in front of the arrogant, self-serving members of that Committee.
...yeah...Goldman is really ‘doomed’ all right...their shares are up $3.00 in pre market trading...I’m adding more shares to my portfolio today...I trust an investment in GS to take care of me in my old age a hell of a lot more than Social Security and Medicare.
“The only thing that gets the attention of these toords is a frog-march perp walk followed by some time at Riker’s talking with Bubba.”
You got that right. Goldman should be smashed apart and all those little accountants on steroids bereft of any shred of ethics should be divorced from their freedom. Who cares if you have $18MM in bonuses sitting in the bank. You can’t reach it by sticking your hand out between the bars of your 8 x 12 foot cell. Goldman self selects a**holes who are basically intellectually arrogant sociopaths in Brooks Brothers clothes.
Yeah just ignore the fascistic behavior of the Dem Senators.
Did not even bother to allow the perps to testify merely screamed slogans and abuse at them.
It was like some 1930s Soviet show trial, pure unadulterated propaganda.
Love the way guilty until proven innocent becomes the standard around here once the Democrat Party propaganda machine gets cranked up.
This whole farce is a Democrat PR stunt, it has no serious legal base to it
http://www.freerepublic.com/focus/f-news/2502225/posts
Demonizing Goldman Sachs (Smoke and Mirrors....s must read)
http://www.freerepublic.com/focus/f-bloggers/2501557/posts
Senator Carl Levin Continually Uses Curse Word During
Senate Hearing with Goldman Sachs (Video)
http://www.freerepublic.com/focus/f-news/2501426/posts
Goldman Didn’t Commit Fraud: Ackman
CNBC.com ^ | Barbara Stcherbatcheff
The question here is whether or not they did actually something wrong, as defined in the current SEC regulations and law. If they did, they should burn. But it appears they did not. I’ve got no love for them - they’re a nasty and very competitive bunch in the financial markets, but, people sure are stirring up hate towards Goldman and by extension the financial industry in general just because they make a lot of money.
The GS folks made it clear that easing credit requirements is at the root of the crisis.
To believe anything else is to be a dupe of the left.
The only rational post on this subject so far. Too bad “conservatives” don’t really understand much about markets and how prices are reached. The other posters need to read the article on this from RealClear Politics, but they won’t...
I think you would be more comfortable posting on the MSNBC blog.
At the Site : REAL CLEAR MARKETS, John Tamny, argues that market speculators like Goldman Sachs and John Paulson and those on the losing side of the trade are actually doing the economy a healthy SERVICE.
see here :
HE ARGUES THUSLY:
1) Without the price signals provided by traders with varying views on all manner of economic activity, the “economy” as we know it would lack the information necessary for its efficient organization.
THEREFORE, Market speculators provide ESSENTIAL ECONOMIC INPUT.
2) We should more aptly describe speculators as “price givers”; the prices they provide us with essential when it comes to ensuring that limited capital reaches its highest use.
3) RE: John Paulson and his ABACUS deal with ACA, IKB and Goldman Sachs. The fact that Paulson was enriched by the transaction is merely the “seen.” The “unseen” in this case is the economic benefit that the trade’s end result achieved. Specifically, Paulson’s windfall unequivocally signaled to real estate bulls that their continued funding of subprime mortgages would not redound to their returns.
4) That Paulson became a billionaire many times over thanks to his bearish trade on the Goldman CDO is once again the “seen”, but the happy “unseen” is all the capital not wasted on profligate borrowers due to Paulson’s brilliant detective work.
5) RE: Were any meaningful jobs created or lost as a result of market speculators like Paulson ?
Since there are no companies or jobs without investment first, the trade that is SEEN by many as economically meaningless was nothing of the sort. Instead, it halted blatant economic waste that drove money into the hands of the irresponsible, and away from the productive, job-creating economy. Hence, as evidenced by the collapse among subprime securities, further investment in them represented the very wealth destruction that is inimical to job creation. Paulson’s financial bonanza was a certain job creator thanks to his prescient investments exposing investments that were destructive.
HIS CONCLUSION :
Whether “speculators” or traders are right or wrong in their speculations, the market prices they give us are hugely stimulative for the information signaling where capital will best be deployed. THAT’s CAPITALISM and we have to live with it.
Rule of law? Not in this country. We've got a government of men -- and they are leftist ideologues who hate this country.
I hope you are referring to the entire US Congress.
In recent years too many Wall Street turds have been tightly bound with the democrats. Look at all of the Wall Street players who were directly or indirectly connected to the failures who are now part of the administration. For congress this is all part of the “gentlemen, we have to protect our phoney-baloney jobs” strategy since they were directly responsible for the laws and regulations that brought on these problems and many of the Wall Streeters went without protest because it was a way to make more money on the side. Both sides have plenty to hid and bluster over. Screw both sides.
....well said Farlander!...the customers that Goldman sold risky products to were hoping to make a killing themselves...they were given 19 pages of disclosure in excruciating detail...believe me, they were big boys and girls...nobody put a gun to their head and made them buy.
....the Congressional hearings were nothing more than show trials designed to whip up the mob....get them full of envy against the rich.
I whole heartedly agree. As a matter of fact, in the commodities industry, in the CFTC’s own manuals for the Series 3 (Commodities and Futures) license, they define speculation clearly as a beneficial actor in the markets for the exact same reasons. It’s actually on the test.
Speculation is RISK TRANSFERRENCE. People get compensated for that (if they’re right in their speculative position). The result is more efficient distribution of capital and cheaper prices of commodities in the economy as a whole.
Unfortunately not all that many people understand any aspects of such concepts.
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