Friday, April 16, 2010

Wall Street, A Billion Dollar Fraud & The Mortgage Meltdown

I have long been a defender of Wall St. against charges that it was the primary cause of our current economic troubles. Obama's demonization of "greedy" Wall St. is designed both to stoke populist anger and to hide the heavy hand of Democrat's race based social engineering - in which Obama took part - that is the real proximate cause of our current fiscal crisis. Moreover, I believe Obama's proposed changes to the financial regulations are not only unnecessary, but on at least several levels, deeply counterproductive (see here and here).

That said, one thing that I do support is much stronger penalties for white collar crime. For example, if the accusations in this SEC Complaint of a billion dollar fraud are true, than Goldman Sachs should be severly punished and its employee, Mr. Fabrice Tourre, locked up and the key thrown away. Do read the SEC Compalint, as it is a window into the derivatives market, a snapshot of the relationship between Wall St. and the mortgage meltdown, and a road map to a billion dollar fraud.

1 comment:

cdor said...

What an operator Paulson is. I wonder if he is related to GW"s former Sec of Treasury, Henry Paulson? This guy dreams a perfect scam. He would have to be an idiot to lose. He picks a bunch of mortgages that he knows are going to fail, throws them in a bag (traunch) so they aren't analyzed on an individual basis where their stinkiness would be obvious, gets Goldman Sachs, with their air of righteousness and legitimacy, to market this as a security, while Paulson bets on the back end that this security will fail (a pretty good bet since he picked the crap mortgages to begin with). This game was enabled by the CDS (credit default swaps) racket that should have brought AIG down, but, thanks to us USA taxpayers,bailed them and companies like Goldman out. Not just Tourre, but every Goldman exec above him should be thoroughly investigated for any knowledge or involvement in this scheme and thrown in the slammer with him.