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And, yes, I DO take it personally: Celebrating and profiting from the tragedy of common folks, a tragedy they helped create, is just business as usual for the banksters
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Sunday, April 25, 2010

Celebrating and profiting from the tragedy of common folks, a tragedy they helped create, is just business as usual for the banksters

if you read this wapo article carefully, it sounds like goldman was only "seeking to protect itself if prices collapsed," "a routine part of its business"... in other words, goldman was just doing what any good business would do, developing and executing a prudent business strategy...
As the U.S. housing market began its epic fall nearly three years ago, top executives at Wall Street powerhouse Goldman Sachs cheered the large financial gains the firm stood to make on certain bets it had placed, according to newly released documents.

The documents show that the firm's executives were celebrating earlier investments calculated to benefit if housing prices fell, a Senate investigative committee found. In an e-mail sent in the fall of 2007, for example, Goldman executive Donald Mullen predicted a windfall because credit-rating companies had downgraded mortgage-related investments, which caused losses for investors.

"Sounds like we will make some serious money," Mullen wrote.

Lawmakers said the internal e-mails, released Saturday by the Senate Permanent Subcommittee on Investigations, contradict what they said are Goldman's assertions that the bank was not trying to profit from the decline of the housing market in 2007 and was merely seeking to protect itself if prices collapsed.

Goldman admits it had reduced its exposure to the overheated U.S. property market and had sought to limit possible losses through a strategy that would make money if home prices fell. It says such "hedging" is a routine part of its business and is intended to moderate risk to the firm, an especially vital function when markets shift violently, as they did in 2008.

at least zachary goldfarb, the by-lined reporter, had the graciousness to "suggest" the following...
The findings of the Senate panel also come as Goldman is facing a fraud suit, filed earlier this month by the Securities and Exchange Commission, alleging that the bank misled its clients by selling them a mortgage investment that was secretly designed to fail. Senate investigators this weekend were interviewing Goldman Vice President Fabrice Tourre, who is implicated in the fraud suit and will testify Tuesday.

The Senate panel's findings do not touch directly on the fraud suit but suggest that Goldman's alleged behavior in that case was indicative of a larger pattern of duplicitous conduct on the eve of the economy's collapse.

"Investment banks such as Goldman Sachs . . . were self-interested promoters of risky and complicated financial schemes that helped trigger the crisis," said Carl M. Levin (D-Mich.), chairman of the Senate panel. "They bundled toxic mortgages into complex financial instruments, got the credit rating agencies to label them as AAA securities and sold them to investors, magnifying and spreading risk throughout the financial system and all too often betting against the instruments they sold and profiting at the expense of their clients."

the real story, the one that desperately needs to be carefully researched and put before the american people, is how our super-rich elites and their wholly-owned servants, the banksters, have shamelessly manipulated the american and global economies for many, many years to serve their own greed... when are we going to get THAT story...?

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