Goldman and Greece
Goldman has been charged with fraud in a civil suit and is currently under Justice Department investigation. At the same time, the Dodd financial regulation bill is coming before Congress. Many financial commentators seem to think it’s OK for Goldman to bundle fraudulent mortgages together as long as there is a customer. But the naked greed of selling short the same instrument strikes the average guy as a conflict of interest that amounts to fraud.
Emails set the tone of the investigation.
Will the Dodd bill clean up Wall Street? That remains to be seen as the bill has not yet taken its final form. Highly unlikely.
What should anti-New World Order partisans hope for as this mess receives more publicity and possible regulation? First, recognize that Goldman has been looting nations for decades. They are the slickest crooks on Wall Street. We don’t have room in this post to outline all their crimes. That material is covered in The NAFTA Conspiracy. We can hope that Goldman is broken up, short selling abuses are curbed, and mortgage bundling is outlawed. Anything short of that is a whitewash.
Other commentators seem to be catching on that Goldman is an evil parasite. But, coverage is mainly devoted to the current scandal rather than to previous crimes.
To put this particular episode in wider context, we are including coverage of the Greek debt downgrade to junk status and European financial maneuvering around the Greece bailout. It’s all connected.
Matt Taibbi’s Rolling Stone article on Goldman.
Will Hutton at the Guardian believes Goldman engineered the global financial crisis. So do we. But, this is a bit difficult to prove. The “logic” of this position is, first to understand the huge magnitude of the bundled mortgage fraud perpetrated to banks and governments around the world. Then ask, if such a high proportion of these mortgages were nonperforming and trillions of dollars of fraudulent instruments were created, what else could happen but rippling bankruptcies?
Mish has continuing coverage of the Goldman scandal and the proposed new financial regulations.
Solari has many articles of interest.
ZeroHedge has behind-the-media coverage.
Mish on charges against Lehman. How Lehman hid its insolvency, and why the focus turns to Geithner’s knowledge of Lehman’s fraud.
A second conflict of interest charge against Goldman is emerging in England, where Goldman helped to bail out Lloyds.
England and Germany join the fraud investigation.
David Goldman on how Paulson profited from Goldman’s deals.
More Goldman stories and many links at GoldmanSachs666.
Washington on the Dodd reform bill. More analysis of the bill at Malkin.
Proposed amendment at Alex Jones.
Frank Luntz on why the Dodd bill is a “special interest feeding frenzy” that lets Wall Street off the hook. But remember, this bill is not yet final. It is, however, of the scope of the health care reform, large and unwieldy and subject to further interpretation and regulation. That is why congressional legislation is just a scam these days.
Why we are undecided about what will happen to Goldman: The New World Order needs to keep Goldman afloat as a source of loans. But increasing recognition at home and abroad that Goldman was at the center of the global meltdown and profited from it means some mechanism must be found to keep national governments from being Goldman’s prey. It doesn’t help that the Obama administration is a branch of Goldman Sachs.
Our best guess: Goldman escapes any meaningful U.S. regulation but runs into a wall of containment in Europe.
Greece
Roubini warns that Greece’s debt problem is “tip of iceberg.” Standard & Poors downgrades sovereign debt of Portugal and Spain. Markets around the world are “rippling.”
Greece’s massive government spending and low growth rate means it can’t grow its way out of debt.
“Debt contagion” could spread if Germany doesn’t vote to bail out Greece. Germany must approve an aid package because German banks hold tens of billions of Greek soveriegn debt. Greece is now so poor that it cannot buy riot shields for its police.
All that government spending to shore up Spain’s weak economy in recession is coming home to roost. All of the Western nations are similarly at risk from socialist overspending and the bank bailout strategy.
Euro declines as investors dump Europe’s bonds. Europe’s banks at risk, will need to raise capital. GDP estimates slashed. European nations become more nationalistic and less New World Order. But so much pain lies ahead in managing debt that Europe’s future economic status is cloudy.
Greece may need to be pushed out of the EU. And other southern countries, if the debt contagion spreads. The crucial question is, at what point do nations stop creating new debt to bail out old debt? The game can’t go on forever.
Ambrose Evans-Pritchard’s reporting on Greece. Fear of rippling defaults because European nations have too much debt. This time bomb could blow up at any time and send all markets crashing.
The Next Crash has some insight into the failure of Greece’s economic policies.
Speculation that Greece’s unions won’t let Greece cut government jobs. The Communist unions not only resist spending cuts affecting unions, they also hope that street action can be directed to the Communist party takeover of Greece. A general strike is planned for May 5.
Where the money went that fled from Greece. Into gold.
As we told you in previous posts, the logical outcome is widespread currency devaluation.
The outcome of coordinated response is to transfer more power to the IMF. Meanwhile, the street demonstrations by the unions are designed to prevent cuts in government spending.
We warned you in previous posts not to take government jobs. You’ll end up in the street, protesting on the wrong side.
Over to Mish for the details of the May 3 bailout agreement.
“The only pertinent question is “What order do various countries implode?”
“In the end, we’re all saying we don’t know how to deal with it,” said Dirk Hoffmann-Becking, a bank analyst with Alliance Bernstein in London. “We don’t know how the channels work, or where the problems will pop up next.”
What should we hope for? That debt defaults ripple, European banks go bankrupt, and the European Union dissolves. Europe’s socialist governments fall, replaced with far-right governments that curb immigration, undo socialism, and govern in the interests of their people. All of Europe recognizes that the worst possible form of government is forced mutual dependency, predatory capitalism, and socialism, and vows never to repeat their mistakes. All the crooks are hanged in the public square.
Short of that, we might hope that one country decides to escape from the financial entanglements and declares its independence from the EU. That country would become a magnet for white immigration and would set itself up to become the greatest country in the history of the world.
The next scandal:
Goldman is involved in the cap and trade scam. So is Obama.
Glenn Beck has done some nice reporting on this scam. See videos at Solari link above.
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So much for the great economic recovery touted by Obama. The collapse is near.
Those who are waiting for an economic recovery are really supporting the New World Order slavery agenda. Anyway, you knew Obama was lying when he opened his mouth, so why pay any attention to the propaganda?
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