Posts Tagged ‘CDO’s’

“Doing Fraud’s Work: A Goldman Tradition”

A few months ago Goldman’s virtuous CEO, Lloyd Blankfein, was quoted in an interview with John Arlidge of The Sunday Times of London, saying that He was ‘doing God’s work.’

In the article, “I’m Doing God’s Work.’ Meet Mr. Goldman Sachs,” Blankfein went on to state that Goldman was part of a virtuous cycle allowing that “they have a social purpose.”

But many contend that they are socially challenged.

Goldman executives were on Capitol Hill yesterday to testify about their involvement in failed Abacus; the securitized investment that crumbled when the housing market crashed, shortly after being put together, leaving investors with millions of dollars in losses. Goldman failed to tell investors that the person who put the package together was taking a short position in the investment. John Paulson was betting on its failure even before it was completed.

The recent charges brought by the Securities and Exchange Commission charging Goldman with failure to disclose important details to investors in the Abacus deal could be only the first of many charges that the UnVirtuous Goldman will have to face.

Read the rest of this entry »

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Posted in Banking, Economy, Too Big to Bail | Comments Off

“An Economic View Into a New Decade”

The financial decade has ended and all evidence points to 10 years of nothing. That’s right, the stock market was actually down during the last decade!

A new decade has begun and with it comes high hopes for a much better decade than the last. At least for the market. The big question is, what will the next decade bring and what will the best bets be for investors?

As we entered 2000, a new millennium, we had what appeared to be a thriving economy. Jobs were plentiful, tech was booming, the country had a budget surplus, and a deficit of only $5 trillion.

A decade later we have unemployment at 10%, tech has leveled off and has moved to selling toys and gadgets, and the deficit climbed to $12 trillion. Banks are failing at an accelerating rate and big banks, those ‘Too Big to Fail’ after being pulled from the abyss with taxpayer money, are cheating the economy at a greater level than at any time since the 1920’s.

A lost decade? The worst in our nation’s history!

Are the prospects for a more prosperous decade any better than they were at the beginning of 2000?

Have conditions really improved? Read the rest of this entry »

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Posted in Economy, Predictions | 2 Comments »