Goldman Sachs and Others Investigated for Betting Against Securities They Created

Goldman Sachs and Others Investigated for Betting Against Securities They Created

www.blacklistednews.com

The simultaneous selling of securities to customers and shorting them because they believed they were going to default is the most cynical use of credit information that I have ever seen,” Sylvain Raynes, an expert in structured finance at R & R Consulting in New York, told The New York Times. “When you buy protection against an event that you have a hand in causing, you are buying fire insurance on someone else’s house and then committing arson

(visit the link for the full news article)


Related News Links:
beforeitsnews.com

Here we have yet another good example of our wonderful bankers at work. In reading this I could not help but think of things like the economic hit man, what brought the central bank into being, and the economic slavery that our founding fathers work hard to try to prevent. If only they could see what they are doing now.....

www.blacklistednews.com
(visit the link for the full news article)

In addition to Goldman, CDOs were sold and bet against by Deutsche Bank, Morgan Stanley and Tricadia Inc.—an investment company whose parent firm’s CDO management committee was overseen by Lee Sachs. Sachs is now a special counselor to Treasury Secretary Timothy Geithner.

Sorry... not funny and funny at the same time... I guess I'm immune to outrage anymore.

And.... these are the types of investment securities (AKA; toxic paper)
which the FED/Treas/around 12 WallStreet Firms with a bank charter,
were allowed to creste -- out of thin air & with little to no collateral to back up those 'investment/insurance' instruments.


This cadre of FinancialWizards are trying to legitimize and create an exotic trading venue (Market) for, all those $280Trillion in CDOs & other debt/investment Derivatives already created, but sitting idle...
at the expense of normal WallStreet Industrials and the dozen or so
SocialSafetyNet programs which will be denied funds
so that this exotic new 'market place' may get funded and be established to trade these exotic & opaque & truly Abstract scraps of debt paper...

Derivatives and such, created by those several Agencies & private Firms which swear that 'They' are the Masters-of-the-Universe




[edit on 28-12-2009 by St Udio]

reply to post by Iamonlyhuman


To me it was just a great big good ole boy network.
But thanks for reading and posting, it was looking to me like no one else was concerned about this one.

Capitalism creates slavery.. What else do you call it when 10% of the population owns 71% of the wealth, and the top 1% owns 38%?

I dunno, maybe that's not slavery.. Just enjoy your walmarts, people. They were built for you, by the top 1%. Don't even think about competing with them, either. Just work at your just-over-broke job and be content.

Another really good very comprehensive article about this here :

theeconomiccollapseblog.com... s

These are the first few paragraphs

How Goldman Sachs Made Tens Of Billions Of Dollars From The Economic Collapse Of America In Four Easy Steps

Goldman Sachs Investment banking giant Goldman Sachs has become perhaps the most prominent symbol for everything that is wrong with the U.S. financial system, but most Americans cannot even begin to explain what they do or how they have made tens of billions of dollars from the economic collapse of America. The truth is that what Goldman Sachs did was fairly simple, and there may not have even been anything "illegal" about it (although they are now being investigated by the SEC among others).

The following is how Goldman Sachs made tens of billions of dollars from the economic collapse of America in four easy steps....

Step 1: Sell mortgage-related securities that are absolute junk to trusting clients at vastly overinflated prices.

Step 2: Bet against those same mortgage-related securities and make massive bets against the U.S. housing market so that your firm will make massive profits when the U.S. economy collapses.

Step 3: Have ex-Goldman executives in key positions of power in the U.S. government so that bailout money can be funneled to entities such as AIG that Goldman has made these bets with so that they can get paid after they win their bets.

Step 4: Collect the profits - Goldman Sachs is having their "most successful year" and will end up reporting approximately $50 billion in revenue for 2009.

@ OP ... I'm amazed this topic hasn't generated more interest... considering it's such a stark example of how the populace was royally screwed by the recent bailout, and a few elites sticking it to the average person.

Have a star and flag

reply to post by Dagar


Dagar,
Thanks for your support. I thought it should generate more attention also. Although all things considered it is a complicated topic. This is really the kind of thing there needs to be laws on and overlooked but the SEC or something similar to it.

reply to post by RedGolem


It is such a blatant 'swindle' they've perpetrated I'm amazed that ordinary people in the US are so acceptingly indifferent to it.

Here you have a company that sells junk investments, while at the same time betting on a situation happening that would make those investments worthless, then being bailed out by the US government, and finally making sure that the companies that need to pay out on their cynical bet get bailed out too.

End result... millions lose their homes, investments, businesses, jobs, while they make massive profits and have the best year ever.... To add the cherry to their cake, apparently they've done it several times since 1922, each time coming out richer while most others get shafted.

Simply staggering.


EDIT... I put 'swindle' in quotation marks cause apparently what they did was not illegal.... That's what makes it even more amazing

[edit on 1/1/2010 by Dagar]