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How Goldman Secretly Bet on the U.S. Housing Crash


US Politics & Gov't  (tags: goldman sachs, crime, abuse, dishonesty, cover-up, lies, ethics )

David
- 14 days ago - mcclatchydc.com
In 2006 and 2007, Goldman Sachs Group peddled more than $40 billion in securities backed by at least 200,000 risky home mortgages, but never told the buyers it was secretly betting that a sharp drop in U.S. housing prices would occur (To their advantage!)
Comments

Gorilly Girl (369)
Friday November 6, 2009, 5:15 am
Crap Free??? We lost our freedoms when the white man came....The End.

Big Gorilly Hugs
 

Candace A. (7)
Friday November 6, 2009, 9:24 am
In the old days when a gambler cheated, he or she was taken out and either tarred and feathered, which caused irreparable skin damage and made sure everyone knew they were of ill-repute, or they were just dispatched with a bullet. Now they are given a bailout.

Freedoms were lost when the First People did not unite and repel the intruders. The same is true all over the world. And they keep banking (no pun intended) on us not uniting as people of the Earth.
 

Dandelion G. (124)
Friday November 6, 2009, 5:04 pm
Bunch of Theives.....Down with the Fed! Go for the head of the Snake....the Federal Reserve.

The Federal Reserve has overthrown the United States....the President below said it perfectly, he was Assassinated.

"Whoever controls the volume of money in our Country is absolute master of all industry and commerce....and when you realize that the entire system is very easily controlled, one way or another, by a few powerful men at the top, you will not have to be told how periods of inflation and depression originate."

James A. Garfield ASSASSINATED President of the United States
 

David Gould (146)
Friday November 6, 2009, 5:27 pm
To bet on futures markets is high risk. What staggers me is that they allowed themselves to bet so much of our money on the most high risk of failures...the prime markets. When someone defaults on a debt his failure to pay becomes a commercial product...since debt generates money as the theoretical payback is greater that the original debt...so states the financial model. But once the defaulters run our of money the sub-primes debt overheats and the bottom falls out of the market.

To say this was folly is an understatement.
To say this was stupidity is an understatement.
To say it bordered upon the criminally negligent is nearer the case.

So why in the name of Horlicks are these idiots not only given more of our money...
and allowed to pay themselves fat bonuses...
and steal our medicines...
when they should be behind iron bars.

This world is a crazy place which I understand less as I get older.
The only save investment bet is to back a product that is tangible...
and to bet each way...
on short odds
and only a little on each investment.
 

Pastor Tim Redfern (516)
Friday November 6, 2009, 10:25 pm
I have heard and read the details of this
disgusting story, here right now, as well
as before now.
Capitalist bastards! They should have gone the
way of Lehman Bros., a company that is now as
dead and buried as the aforementioned President
Garfield.
10 or 12 years ago, people used to curse me when
I called America a fascist nation. They don't curse
me much at all anymore when I do now. Too many of them
have woken up, and now realise what fascism truly is.
A great post, David.
Thanks, and noted.
 

Chaz Gaily Berlusconi (249)
Saturday November 7, 2009, 6:19 am
Goldman was to busy filling his gold bags with all our cash... but the time when it is called "many happy returns"... what goes around will come around...
 

Bruce Anderson (29)
Saturday November 7, 2009, 4:55 pm
If indeed Goldman Sachs behaved in this way and kept the bursting mortgage bubble hidden from its investors and were touting investments in it as AAA, this is pure and simple an egregious criminal act and should be prosecuted to the fullest of the law.

My only quandry though, is that if Goldman Sachs had knowledge of this, no matter how secretively they kept it hidden from their investors, how come the SEC and Bush's treasurey were totally unaware of the unfolding pattern?

They should have also known with the mortgage crisis looming and seeing Goldman Sachs' high ratings of an emerging disaster that GS was up to no good and carrying out criminal activity.
 

Phyllis P. (397)
Saturday November 7, 2009, 8:25 pm
Isn't that illegal? Corporate america just keeps stooping to new lows every day.
 
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