Wow, never thought I’d see the day that the SEC would charge the great vampire squid with fraud. Will it be successful? I don’t know, Goldman Sachs is pretty powerful and I wonder how much the US wants them guilty. It will probably be plea-bargained out. What a shame. Goldman Sachs stock is already down 12% 13.2%. This happened in about two hours started happening at 10:36AM EST. The stock is already slightly back up. Total loss is at 13.11%
A lot of banks and financial institutions are down 5% due to this. I wish the US would actually charge the people as well as the company with federal crimes.
The NYT has a further in depth article about this situation. For the moment, I am tracking GS’ stock. It’s back up and losses are at 11.86%. The more negative publicity GS gets, the more it’s stock will plummet. Do you think that they will short their own stock?
A great thorough article on the investment bank Goldman Sachs, which Matt Taibbi calls a vampire squid, meaning that it feeds upon our society to live and has got its tentacles all over the place.
By now almost everyone knows that for decades mortgage dealers insisted that home buyers be able to produce a down payment of 10 percent or more, show a steady income and good credit rating, and possess a real first and last name. Then, at the dawn of the new millennium, they suddenly threw all that shit out the window and started writing mortgages on the backs of napkins to cocktail waitresses and excons carrying five bucks and a Snickers bar.
The way that these large banks are behaving is inherent to capitalism run amok. Instead of trying to regulate these banks, the US government has been pushing to deregulate them. There’s just so much that is wrong with this picture that I’m almost speechless.
It’s the prime example of why these banks are the epitome of capitalism gone wrong, a perfect example of overwhelming greed. These types of institutions will just continue doing what they’re doing until someone stops them.
Published September 29, 2008
asides , finance , news
Tags: asides, banks, credit, crisis, finance, free market, Goldman Sachs, government, intervention, Morgan Stanley, news, seizure