Goldman Sachs, which emerged relatively unscathed from the financial crisis, was accused of securities fraud in a civil suit filed Friday by the Securities and Exchange Commission, which claims the bank created and sold a mortgage investment that was secretly devised to fail.
via S.E.C. Sues Goldman Over Housing Market Deal – NYTimes.com.
All I can say is it is about fucking time! Read this article and explain to me why people are not rioting in front of Goldman’s headquarters.
The absolutely shocking part of the lawsuit is the revelation that John Paulson, a freaking evil, greedy mother fucker if there ever was one, was permitted by law to build his own mousetrap. He actually went to Goldman Sachs and told them he wanted to fill a great big bucket full of shit and then sell it as if it were full of flowers, all the while knowing that it would turn back to shit and he would make billions.
I am sure Goldman Sachs has an army of lawyers, paid for by our bail out money incidentally, that will settle this case out of court without an admission of guilt.
This is clear evidence that the game is rigged from the get go. You have no chance of succeeding and these vultures on Wall Street have no guilt about taking you down to build themselves up.
“The product was new and complex, but the deception and conflicts are old and simple,” Robert Khuzami, the director of the S.E.C.’s division of enforcement, said in a statement. “Goldman wrongly permitted a client that was betting against the mortgage market to heavily influence which mortgage securities to include in an investment portfolio, while telling other investors that the securities were selected by an independent, objective third party.”
Even Las Vegas gives you some small chance of winning when you gamble.
This financial gambling is fucking crazy. It wouldn’t be so bad if not for the fact that the entire economy of the world fell to pieces because everyone was gambling.
The original purpose of Wall Street was to raise capital in order for companies to use it to grow. None of that goes on anymore. Everyone is looking for a quick buck at the expense of the who the fuck cares.
I am hoping that this lawsuit is just the tip of the iceberg. From the scope of the financial crises, you know there were a lot of other criminals who got in on the scheme. I am not holding my breath.
Fortune 500: Profits bounce back – Apr. 14, 2010
Amazingly, as consumers struggle, U.S. corporations are staging a nearly unprecedented comeback that’s largely escaping notice. The gargantuan, dispiriting job cuts that seem to dominate the news have also been the spur for an epic resurgence in profits. For 2009, the Fortune 500 lifted earnings 335%, to $391 billion, a $301 billion jump that’s the second largest in the list’s 56-year history, approaching the increase in the robust recovery of 2003. For last year the 500 raised their return on sales from less than 1% to 4%. That’s close to the list’s 4.7% historical average.
via Fortune 500: Profits bounce back – Apr. 14, 2010.
The takeaway from this story is that even with a turnaround in the economy, do not look for corporations to start hiring. They just proved they can make record profits with far less employees.
Home Foreclosures Surge, Hit Quarterly Record : NPR
A record number of U.S. homes were lost to foreclosure in the first three months of this year, a sign banks are starting to wade through the backlog of troubled home loans at a faster pace, according to a new report.
RealtyTrac Inc. said Thursday that the number of U.S. homes taken over by banks jumped 35 percent in the first quarter from a year ago. In addition, households facing foreclosure grew 16 percent in the same period and 7 percent from the last three months of 2009.
via Home Foreclosures Surge, Hit Quarterly Record : NPR.
While it is nice to see hear that the economy is recovering, the evidence suggests that it has a long way to go before the middle class feel recovered.
Along with the news that foreclosures have hit a quarterly record, there is news this morning that the number of people signing up for unemployment benefits has risen sharply for two straight weeks.
This economy is far from out of the woods. We may have a toe in the clearing, but we are nowhere near the path to Grandma’s house. Remember this time last year when there was all the talk of green shoots? What happened with the green shoots? Did they wilt and die?
Economists, the talking heads at CNBC, and politicians seems to think that if they talk about a recovery enough, one will miraculously materialize.
There are systemic problems with our economy. This is not a crises of confidence. This is a collapse of a house of cards economy. Or more precisely a collapse of an economy built on housing. The time of the so called FIRE economy is over. There needs to be a paradigm shift and I do not see one coming.
The news that a record number houses fell into foreclosure in the first three months of this year is ominous. People who are working and living in a home they can afford do not let it go into foreclosure. People who are working tend to try and pay their bills. People who are out of work lose their homes. Currently there are 15 million unemployed workers in the US. That is a staggering number.
Remember this crash was not an accident, and it will not go away with wishful thinking. There is no news about a jobs program from the Obama administration. Lord knows there is a lot of work to be done in this country. Instead the news is still focusing on terrorist nuclear threats and Iran’s attempt to get the bomb. Those are important, but tired news stories. Fear still rules the day.
Life goes on for us the unemployed. If it weren’t for a lack of money, I’d be perfectly happy never going back to work. The country better watch out, I am sure there are a lot of other formerly ambitious people like me who are just getting tried of spinning their wheels looking for a job.
I am thinking of putting my job search on hold. After sending out 500 resumes I think I need a break. I may hit the beach this summer and pretend I am a teenager again. I am sure I will have a lot of company.
Fed Shouldn’t Reveal Crisis Loans, Banks Vow to Tell High Court – Bloomberg.com
April 14 (Bloomberg) — The biggest U.S. commercial banks will take their fight against disclosure of Federal Reserve lending in 2008 to the Supreme Court if necessary, the top lawyer for an industry-owned group said.
via Fed Shouldn’t Reveal Crisis Loans, Banks Vow to Tell High Court – Bloomberg.com.
The real question is why the fuck is this information secret? How is this not a matter of public record! Let’s see what the Supreme Court decides. My money is on them siding with the banks. We’ll see…
Nation & World | Millions of unemployed may never recover | Seattle Times Newspaper
WASHINGTON — Despite recent job gains, one grim statistic casts a long shadow over the recovering economy and the futures of more than 6 million workers: Fully 44 percent of the nation’s 15 million unemployed have been out of work for more than six months.
And evidence suggests many of them may never rebuild their working lives completely.
Never since the Great Depression has the U.S. labor market seen anything like it. The previous high in long-term unemployment was 26 percent in June 1983, just after the deep downturn of the early ’80s. The 44 percent rate this year translates into more than 6.5 million people.
via Nation & World | Millions of unemployed may never recover | Seattle Times Newspaper.
In ten years we have gone from an unemployment rate of 3.9% to 10%. The last time the unemployment rate was this high was 1983!
Why is this not the top priority of the government? Where is the jobs bill were were promised?
Your Tax Dollars at War: : Information Clearing House - ICH
April 13, 2010 “Information Clearing House” – -If you’re like me, now that we’re in the week that federal income taxes are due, you are finally starting to collect your records and prepare for the ordeal. Either way, whether you are a procrastinator like me, or have already finished and know how much you have paid to the government, it is a good time to stop and consider how much of your money goes to pay for our bloated and largely useless and pointless military.
The budget for the 2011 fiscal year, which has to be voted by Congress by this Oct. 1, looks to be about $3 trillion, not counting the funds collected for Social Security since the Vietnam War, the government has included the Social Security Trust Fund in the budget as a way to make the cost of America’s imperial military adventures seem smaller in comparison to the total cost of government. Meanwhile, the military share of the budget works out to about $1.6 trillion.
via Your Tax Dollars at War: : Information Clearing House - ICH.
Wow, is this true? Is the military really costing us 53% of our tax money? Damn for that price we ought to be winning our wars and taking our tributes.
I guess the guys with the big guns always get what they want. It might be a better world if we tried spending just few more dollars on the infrastructure of this country instead of on Drone Aircraft and laser guided bombs. But I am probably just being naive. We probably do need a military budget bigger than all the other countries in the world combined. We do right? Couldn’t we have built a big plastic dome over the entire country for the money we spent? Couldn’t we have stationed a soldier every 3 feet across the entire perimeter of the US at this price?
Are we actually preparing for the Alien Invasion of Earth? If we are then maybe we need to spend all this money to protect human kind from aggressive space aliens. If not, then what is the point?
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