How Goldman Sachs Abandoned the 'Real' Economy

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To understand the social value of synthetic CDO's, think of the glut of unsaleable and unoccupied buildings all over the country. If every unoccupied building burned to the ground tonight, as soon as the smoke cleared the recovery would switch into high gear - ie the surplus is suppressing current economic activity. When someone with a growth analysis of housing entered into a swap with someone with a negative view and the negative analysis turned out to be correct; then no actual house was built to add to today's glut. These swaps allow 'real' investment to reflect the net market sentiment - ie: positive minus negative views. Bubbles get inflated when only the positive views have any material effect.

walstir 4:39PM July 04, 2010

Gold Sachs Helped Greece To Get Accepted Into The European Union Using Illegal or Dirty Tricks.
By: Jordan C. Fan, Prophet of Environment.
According to many news sources Gold Sachs has maneuvered Greece economy and helped that nation got into The European Union using illegal or dirty tricks to mislead the EU. Those gimmicks had work when the European and Greek economy was sounded but has caused the current Greece government financial collapse which will affect the entire European Union. For this Goldman Sachs should also be investigated, boycott and/or prosecuted.
The most viable solution for the economic crisis in Greece and the European Union is:
For the Greek-Anglo Prince Philip to host a series of Toga Parties at the Buckingham Palace as fund raisers and donation to the Greek Treasury. He could charge £100,000 GBP per plate. I am sure there will be no lack of Toga Party goers to the Buckingham. The important question is why the Queen could hold parties and her husband could not? Or a lot less often? That house or palace belongs to both husband and wife.
By now all of you should know that I deserved the title as the Greatest Prophet of all time an dProphet of Environment. I always have the simplest solution for the most difficult problems.

jordan fan 5:55PM April 30, 2010

Warning: Graphic info that may not be true.Some of the bureau caught? Also now i can not see their body tattoos on there body and have empty pockets when they brag shoot their rifles. Wow all that tough talk and guns with them and cheating others then realize there cheating themselves!Man you really should have not bragged. And not thrown the fist punch! Next Senators,Jack and Bill taken up for the murderers? I did not see Bill and Jacks tattoos or the Bureaus Were you called dork by them first. Or were the innocent christians. I would punch senators,Bill and Jack in the mouth. Thanks Be careful. Rev 12:9 kjv. Col 3:11 kjv. rom 12:2. Rom 3:23 and forgiveness.Say no to cults.

andy t of IN 8:29AM April 30, 2010

Investment banks, investment managementfirm, and investment brokerages need to be set up a partnerships - like they used to be. Partners would likely never approve things like CDO trading - because if it does't work out, the partners would have taken a huge personal bath. Nowadays, since these organizations are mostly publically-traded, it is shareholders who are ill-informed, and tax-payers who take the bath.
The private banks in Switzerland that are set up as partnerships and America's largest remaining investment bank partnership Brown Brothers Harriman never got into CDO or whacky proprietary trading schemes. The partners just didn't allow it. In the end, they are still strong organization and without any help whatsoever from tax-payers.

Mark Jasayko 12:21PM April 27, 2010

Most of the derivatives trading today is worse than just gambling. It is unlicensed and unregulated gambling. In order to allow what goes on in the derivatives business today, it was necessary to prevent the states from enforcing their gambling and "bucket shop" laws.
So, included in the federal legislation that opened the door to the destruction of the world's economy was a preemption of state gambling and bucket shop laws. Most of the states require that prior to going into the gambling business, the officers, directors and principal investors prove they are qualified to manage the gambling establishment, have made provision to pay their financial obligations and are of good character. And they are required to submit to a background check, including investigation of their character, their role in civil litigation, arrests and criminal convictions.
Many of the individuals and companies who brought the world's economy to its knees through derivatives packaging, marketing, sales and trading could not meet the qualifications for a license to operate a casino or other gambling establishment.
REG CROWDER -- http://www.RegCrowder.com

REG CROWDER 5:04AM April 27, 2010

In the old days, futures markets were used by real traders to lock in prices of commodities which may fluctate in the future. Now, all these exotic instruments which derives it's value from other things is just one big casino. When you take away all the financial mumbo-jumbo, it is just one party taking a bet one way and another taking the opposite side and Wall Street taking a cut for being the house. At least with gambling, there are rules and regulations, Wall Street operates with little or none and wants to keep it that way (kind of like the Mafia).

Guy 4:07PM April 26, 2010

If the politicians had allowed AIG to collapse (as they should have) GS would have gone away also and the Wall Street oil speculators would have been crushed permanently. Crude oil prices would still be struggling to rebound past $40 a bbl and Wall Street and the country would be better off. As long as GS and their cronies can pay off the politicians, Main Street will continue to pay for their corruption.

Nick F of GA 11:19AM April 26, 2010

It's 50-50 on Goldman...IF? they did something shady, what's new? MY concern
is for young people!!! I am one of those people who does not want anyone poor, but does not want to help them?!!! I inherited a great deal of money so
it may not be considered "fair" to engage in this conversation...however, I
personally consider the "making money" system unfair!!!

John of IN 7:53PM April 24, 2010

Why not just give it to charities or something, Goldman would just use it for there defence. Anybody giving money back to Goldman is just helping Goldman. We need justice not help Goldman do it to us again.

Don D. Brock of AZ 12:38PM April 24, 2010

You do have to wonder whether Obama (aka Barry Soetoro) will give back the over 950,000 dollars he took in campaign contributions from these thieves or if he will explain all the White House visits that the CEO of Goldman had with him (4 confirmed by photos) were all about.
Then again.... Birds of a feather flock together.

Jeff of WI 3:43AM April 24, 2010