Tuesday, May 17, 2011

Politics: The People vs. Goldman Sachs

This article is great, and required reading if you want to hold court in any conversation related to the country's financial status.

I also want to say - Matt Taibbi is one of my favorite people in the world. Sorry, everyone else I know. This guy is doing the work. Plus, he's a great writer in and of itself, with lines like "a satanic derivative structure." I just like that he used such a strong adjective - he's following in Hunter S's footsteps, and at Rolling Stone, no less.

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"They were $13 billion short. That's big — 50 percent of their risk. It was so completely disproportionate."

Lloyd Blankfein went to Washington and testified under oath that Goldman Sachs didn't make a massive short bet and didn't bet against its clients. The Levin report proves that Goldman spent the whole summer of 2007 riding a "big short" and took a multibillion-dollar bet against its clients, a bet that incidentally made them enormous profits. Are we all missing something? Is there some different and higher standard of triple- and quadruple-lying that applies to bank CEOs but not to baseball players?

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