Goldman, Toyota, and Funeral Homes

(Cartoon via robsright.com)

Just a quick elaboration on my last post, with a twist coming from the video that Kelly just put up.

Andrew Ross Sorkin went on Colbert the other night and gave a much more vivid explanation of the deceptive wheeling-and-dealing that Goldman (and as we're learning, many other banks, as well) practiced. Where my explanation of the deals captures in only the most limited way the nastiness of GS's ways, Sorkin gives a much better explanation:

They were building cars [for which] they thought, or hoped, the brakes wouldn't work, and then [were] buying funeral homes that they thought would pay off later.

Oh, how simple, and effective, and affective. Wait, am I talking about Sorkin's explanation, or Goldman's ruse?

SEC Accuses Goldman of Fraud cont..

Finally the SEC is going after Goldman Sachs and John Paulson for selling these mortgage bonds/securities. Paulson knew would fail just so they wouldn't have the liability for when they do, and Goldman Sachs agreed to sell them. The reason why they are getting a law suit against them for fraud is because they labeled these as good investments when they clearly weren't. Also Goldman Sachs didn't tell the investors that the hedge fund (Paulson) hand picked these horrible investments. The company is claiming they provided full disclosure, but come on...really? While Paulson got over $3 billion for this deal, Goldman lost money, which is another argument on their end. Even though the SEC is only filing for a civil suit, I hope Paulson gets what he deserves.

Here is an article from the LA Times on April 17 on the subject..

http://www.latimes.com/business/la-fi-goldman17-2010apr17,0,7190484.story (copy and paste because for some reason it's not letting me make it a direct link)

and here is also last night's Colbert Report on the subject..

The Colbert Report	Mon - Thurs 11:30pm / 10:30c
Goldman Sachs Fraud Case - Andrew Ross Sorkin
www.colbertnation.com
Colbert Report Full Episodes Political Humor Fox News

Colbert Report--Eliot Spitzer

Here Eliot Spitzer, a former Democratic politician and New York Governor, is interviewing with Stephen Colbert about the current financial system. Spitzer is criticizing the fact that the United States is rebuilding the entire system exactly the same way as it was before the burst. He believes that everyone should be angry that hundreds of thousands of dollars of our tax money are being put to rebuilding the system, rather than investing this tax money in the economy, which needs it more. He declares that we should constrain the banks, for if they receive bailout money and guaranteed federal credit, then they need to lend the money as opposed to the trading and casino economy.

You can watch that clip here on Colbertnation.com .

Colbert Report--Eliot Spitzer

Here Eliot Spitzer, a former Democratic politician and New York Governor, is interviewing with Stephen Colbert about the current financial system. Spitzer is criticizing the fact that the United States is rebuilding the entire system exactly the same way as it was before the burst. He believes that everyone should be angry that hundreds of thousands of dollars of our tax money are being put to rebuilding the system, rather than investing this tax money in the economy, which needs it more. He declares that we should constrain the banks, for if they receive bailout money and guaranteed federal credit, then they need to lend the money as opposed to the trading and casino economy.

http://www.colbertnation.com/the-colbert-report-videos/263255/february-02-2010/eliot-spitzer (just in case the video doesn't play..I've tried like multiple times to upload it but it's been acting up every time)