The SEC Fraud

But I tall you: Love your enemies and pray for those who persecute you, Matthew 5:44

Our Corrupt SEC is now targeting Wall Street as the villains in the Obama Meltdown by charging Goldman Sachs w/Fraud. This is nothing more than thug politics by this Junta to make the proletariat go along w/their attempt to take over the financial industry. They are using the same Nazi tactics they have used to take over the Auto, Banking and Healthcare. This Stalinist move is their distraction from the real criminals in the collapse of the Financial Markets which are Bawney Fwank and Congress.

Conveniently the only people not investigated in this corruption are Congress and Fannie Mae, the actual cause of the collapse. There was no fraud by Goldman Sachs as they know, they are simply calling the usual hedging and selling of worthless unvalued paper as fraud. Nobody who was trading the commodity had any idea of the value of the paper since Congress had required the mortgage industry to stop underwriting loans the same way they have forced the insurance industry to stop underwriting healthcare. In addition when a whistleblower came to their den of thieves reporting the books were being overvalued, Bawney, Dodd and Obozo cried racism to stop the investigation into Fannie’s fraud. This is nothing more than a magician’s distraction to take your eyes away from the sleight of hand.

What a coincidence the exact week Congress is writing a law making capitalism illegal in America, the thugs at SEC accuse the largest Capitalist institution for the Obama Meltdown? There are no coincidences in this Soviet State; this is an attempt to punish America for the wrongs they have committed against the proletariat. There is no fraud in this frivolous case and only a smear on Wall St which of course will be broadcast by KGBCS to brainwash the flock into hating the evil rich. After the gummit Nationalizes the financial industry and GS is found innocent the damage will have been done and we will all be owned both financially and physically by the National Socialist Party.

The SEC is accusing GS of defrauding some rich investors and unethical conduct. What the basis of the fraud charges are was GS was not only selling these bundled mortgages which had some the Fannie and Freddie loans in them but were purchasing hedges against the paper to guard against the market collapsing. Basically, they were buying evil insurance against their position. The SEC is calling those hedge funds fraud since they are saying GS knew those mortgages were worthless and would be revalued at a much lower cost than they were being sold. Can we accuse obama’s campaign of fraud for the same charge? There was no way of finding the value of those mortgages since congress had stopped the investigation into the valuing of the most radioactive mortgages in the bundle thanks to Bawney Fwank and Chris Dudd and obama, who received the most contributions from Fannie Mae.

If the investigation of Fannie Mae had been allowed to go forward rather than stopped by obama, Fwank, Dudd and the DNC this meltdown Mae have never happened. There were rumors floating about the subprime mortgage market and everybody was holding their breath since there was too much unknown. Nobody really knew what it meant or how severe it was and we still don’t thanks to congress. We have still not investigated Fannie/Freddie to find the value of these worthless loans and are still pouring billions into this DNChole to hide their fraud. Rather, they go after the store selling the fraudulent loans, not the real crimes.

If these criminals would have listened to President George W Bush who attempted a dozen times to have F/F investigated, valued and reformed this meltdown would have never happened. This Trillion $$ of fraudulent paper would have been revealed and F/F would have been required to be transparent making this SEC fraud case a moot point. That never happened since the DNC was in on the fraud and was profiting from it. This was from the greed of these politicians and their hunger for power. In reality F/F and the forcing of banks to make loans w/o underwriting for risk was to force exactly what is happening now. This was a planned attack on the economy over the past 30 yrs by a bunch of commies hiding as moderates. Now they have the power for another ten months and are trying to complete their plan of making this a Stalinist Country and this is one more, huge step towards that goal. They are going to make the rest of the financial industry an exact replica of Fannie Mae, their version of communist finance.

We will see this anti-capitalism bill pass which will be lauded by the commiedia as a glorious step towards a more equal financial system when it will be just the opposite. We will have the Party deciding who the winners and losers are rather than the individual. We will have the $0r0$’ of the world have all the opportunities while the free market capitalists are purged from the system. Just like HC where there will be death panel we will have a success panel to look into the contribution records of a business to decide if it is viable or not. There will be a finance CommieCzar who will determine pricing, production and profit. It is a new day under the Glorious Leader as capitalism is outlawed to be replaced w/Nationalism. Welcome to the Nationalist Socialist Party of Amerika.

Yes, this is an inaccurate and incomplete description of the charges against Goldman. Goldman is not innocent, and should be a dead company today along with Bear Stearns and Lehman Brothers. The market would have taken care of their corruption by exterminating them for their bad bets on AIG if their alumnus Treasury Secretary hadn’t decided to bail them out. The resulting inevitable crash will now be larger, and the pain worse, as we are all dragged down with the bankers. A pox on Washington and Wall Street.

Really? I suggest you read this article:

http://www.thedailybeast.com/blogs-and-stories/2010-04-16/goldmans-fall-from-grace/full/

I am a long time conservative who also makes his living as a financial advisor and I am sick to my stomach about having to be lumped in with bastards like this in reputation.

You are confusing two issues: the dangerous desire of this incompetent adminsitration to extend its control over more of the economy, and the incredible amount of ethical lapses and probable criminal conduct by this out of control firm.

ONE HAS NOTHING TO DO WITH THE OTHER

and

BOTH MOST BE STOPPED!

I had the mispleasure of having a seat at the table of Drexel Burnham, and this stinks of what happened there too.

This SEC charge targets one of the worst things Wall Street has ever done: Create a product that didn’t exist for the SOLE PURPOSE of allowing FAVORED CLIENTS to RIP OFF UN-FAVORED CLIENTS.

If you want to defend that action, you are a moron.

That doesn’t excuse this adminsitration’s actions either. But your blog is incredibly weak in understanding this issue.

Goldman is guilty as hell.

The only curious thing about this is that Goldman was hand in glove with the Democrats on most of these scams. And the two politicians who received the biggest donations from them before the last election were Chris Dodd and Barack Hussein Obama, the junior senator who voted “present.”

Hank Paulson was Bush’s Secretary of the Treasury, but he was secretly working for the Dems. He was largely responsible for the October Surprise—the sudden announcement of the great financial crisis—that got Obama elected by ignorant voters.

The Congressional Black Caucus was deeply involved in the Fannie Mae fiasco—all Dems, again with connections to Obama.

What a coincidence the exact week Congress is writing a law making capitalism illegal in America, the thugs at SEC accuse the largest Capitalist institution for the Obama Meltdown?

I would need to a bit of research before I could offer approximate odds. This SEC investigation was well underway in December 2009 (http://www.nytimes.com/2010/04/17/opinion/17sat2.html?src=mv), but I do not know how long a typical investigation of this type would take.

The sad thing is this will used as proof to more leftists that capitalism is evil. The generalization will stick and add more fuel to the fire for the commies to finally kill capitalism as we know it.

These firms may have singlehandedly given our country over to the commies through their greed. It doesn't surprise me though, after watching the great outsourcing of the 00’s and the lack of concern for the impact it would have on the middle class. At some point the masses will turn on "the bad guy" and it's a matter of perception of who the bad guy is. Companies and wall streat haven't done much to appease the masses like the government can and will do.

The mob is on the move and they've got pick forks and torches.

GS was not only selling these bundled mortgages which had some the Fannie and Freddie loans in them but were purchasing hedges against the paper to guard against the market collapsing.

In a nutshell, the SEC is crying fraud because GS "didn't tell the sophisticated investors that someone might be shorting the product they were buying"!!!!!! Now I'm not a sophisticated investor by any stretch, but for me to believe that when I buy a simple share of stock that no one is shorting that same share would be lunacy! The derivatives game of the MBS CDOs is no different. The SEC doesn't have a factual leg to stand on as you so eloquently described. Ya gotta wonder how many Obamadollars recently hit an SEC lawyer's bank account, tho'!

He was largely responsible for the October Surprise—the sudden announcement of the great financial crisis—

So you're comfortable with the Dems continuing to use their "Capitalist Grievance File" as class-envy igniters for every little project that comes along then! The only way to end their use of class-envy every week is to out the SOBs! GS ain't the SOB!

GS was, and is, working very closely with the Fed and the politicians, mostly Democrat politicians.

Who repealed Glass-Steagel? Bill clinton and the Dems.

Who passed the CRA? Jimmy Carter. Who put it on steroids, providing the raw material for subprime mortgages bundled and sold by corrupt bankers? Bill Clinton.

The problem isn’t greedy bankers and capitalists. The problem is corrupt bankers and hedge fund managers working hand in glove with corrupt politicians, mostly Democrats. Obama is attacking the very people he helped to bring on the financial crisis. One of the few cases Obama ever worked on as a lawyer was a suit against a Chicago bank forcing them to make bad loans to minorities.

Goldman Sachs has had its fingers wrapped around everything from Global Warmning to this, but now they are being used to make people want this anti-capitalism bill. The corruption only starts at GS. This is more gummit interference and an attack on capitalism.

Pray for America

That's not entirely accurate.

The problem is that GS told the investors that the CDO portfolio was put together by an independent third party when in reality it was put together by someone that wished to purchase credit default swaps AGAINST those CDOs and therefore picked the worst of the worst mortgages to package up in the security. Those CDOs were virtually guaranteed to fail and the so called independent third party all but guaranteed to win on his bet. That is fraud.

On another note, I know the reflex is to distrust anything that this administration does and think the opposite of what his minions say, but the big wall street banks are guilty as hell in all of this (Goldman, JP Morgan, Citi, BofA, Wells, etc). And BOTH parties have taken actions to make this current mess possible.

Look at the actions, not the party labels. That's what is important. Until we all learn this, we are going to continue to get stabbed in the back by people that pretend to be on our side for their own personal gain.

So you would rather a corrupt congress run wall street than the market. And you’re a a financial advisor?

Vilifying banks and wall street for political gain is their favorite game and you are going right along w/it. To say the subprime meltdown and Fannie Mae are unconnected is rediculous.

Sorry not buying what you are selling, think I would like to hedge that buy. Everybody knew there was a second wave coming and when Oil prices spiked and marginal loans couldn’t pay their mortgages it all fell apart.

Now what have we done to solve those problems? No its easier politically to blame the rich plus takes the blame where it clearly lies.

Pray for America

One of the few cases Obama ever worked on as a lawyer was a suit against a Chicago bank forcing them to make bad loans to minorities....Acorn's SOP!

I agree with everything you said...everything, especially the above. My point is simple, the SEC 1)doesn't have a case; 2)doesn't need a case, they're just providing the fodder to ignite this week's class-envy fire for Obama's base to help pass his anti-Capitalism Bill du Jour! This incident was simple need meeting fulfillment...client A) (let's call them IBK) asks GS for an MBS CDO product to buy; client B) (let's call him Paulson) asks GS for an MBS CDO product to short; GS is simply fulfilling the need making 2 clients happy in the process. The SEC here is simply Obama's lapdog...again!

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