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Democrats pushing Wall Street reform seized yesterday on e-mails showing Goldman Sachs executives privately crowing over the housing collapse that ruined so many ordinary Americans.
In one e-mail, chief financial officer David Viniar brags the firm netted $50 million in a single day, writing that it "tells you what might be happening to people who don't have the big short."
That's shady! Did any of them consider the damage to the U.S economy that would follow this housing collapse?
Don't expect many responses to this. In America such companies are holy cows regardless of what they do. You can only expect responses if Obama can be blamed.
Don't expect many responses to this. In America such companies are holy cows regardless of what they do. You can only expect responses if Obama can be blamed.
Well.....what's HE going to do about it?
That's right.
Not a damn thing....because "they" own him....just like Wall Street does.
That's shady! Did any of them consider the damage to the U.S economy that would follow this housing collapse?
GS didnt cause damage to the US economy. They profited from it, but they didnt cause it to take place.
ANYONE could have profited from it, and many american consumers actually did.
Focusing and blaming GS for profiting from the decline is like blaming individuals who sold their home at the top of the bubble and walked away with profits.
Focusing and blaming GS for profiting from the decline is like blaming individuals who sold their home at the top of the bubble and walked away with profits.
I don't think that is ever the issue. My understanding is that they knowingly packaged securities that are chosen to fail and sold it to their customers.
I don't think that is ever the issue. My understanding is that they knowingly packaged securities that are chosen to fail and sold it to their customers.
They knowingly re-packaged securities that were sold to them, for the purpose of braking them up and reselling. I believe the total transaction bought in question was $2T, which they broke up into $10M packages x 200 of them. When all of the transactions were completed and they finished selling off the packages, GM had a $100M loss. The crash took place while they were holding the securities.
It was Paulson & Co, who sold the securities to GS that were eventually broken up and resold, who bet against the products and profited. (which makes me curious why they arent being charged)
The packaging and selling of these securities were credit rated AAA because they had the backing of the US government. The government owns over $1.25 Trillion in morgage backed securities, and this is in ADDITION to Fannie and Freddie.
GS knowingly took a negative bet on the securities, while at the same time they took a positive bet on the securities. They, along with many investors, take out a bet, and then insurance against that bet in the event their bet is wrong. Its how they operate and generate such large returns.
Example, I'm currently holding 7500 GS shares, while at the same time holding 7500 FAZ shares. One is an insurance bet against the other..
That's shady! Did any of them consider the damage to the U.S economy that would follow this housing collapse?
Did anyone consider the damage to government investigations, where evidence is consistently leaked to steer public opinion, just in time for the proposal for new legislation?
Folks like me profited from the real estate collapse as well. Helped to pay for my house as well as subsidizing my tuition for the first 2 years before our group got the big NSF grant.
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