the wallstreet falcon
first off, let me say that, in my qualified and experienced opinion, (i guess for which you would have to take my word), goldman sachs is NOT guilty of any crime by betting against a market for things (whether or not created by "fab" fabrice tourre) that they knew to be worthless. big investment banks HAVE TO bet against each and every position they take (it's called "hedging") if they are to remain solvent for very long--it's what they do--and the existence of bets against tourre's losing instruments means nothing. there will be hedges against everything, even the winners in their portfolio. it's conclusive proof of NOTHING.
whether or not they are actually innocent is an entirely different question--they most definitely are not--but that's my point. there has been massive fraud perpetrated by the investment bank goldman sachs, (and if you think they are alone in such things, you are an even greater fool), but, just like humphrey bogart's sam spade and sidney greenstreet's casper gutman conspired to throw elisha cook jr's wilmer cook over to the cops as a fall guy for their part in plots of murder and duplicity, we have goldman sachs releasing private personal emails (idiotically sent using a company computer, but nobody said fabrice was ever all that smart about such things) by an employee to baldly hold him up as the scapegoat so that senior executives can skate, scot-free. it's so mercenary that it's almost beautiful--except if you should happen to be fabrice tourre, or any member of the shafted public who was both screwed by the recent financial system collapse, and on the hook to be screwed for the foreseeable future via paying the tax bill on the massive (socialist) bailout for the banks that caused the recent financial system collapse. (and dubya designed and implemented the socialist bailout for the banks--obama merely kepts dubya's boys on at the treasury and the fed in order to continue the travesty--so don't try to play partisan politics with this clusterfuck--it's on the whole of the government, and on us for having elected 'em).
anyway, the passage from fabrice's emails that caught my eye today is this one:
"when I think that I had some input into the creation of this product (which by the way is a product of pure intellectual masturbation, the type of thing which you invent telling yourself: "well, what if we created a "thing," which has no purpose, which is absolutely conceptual and highly theoretical and which nobody knows how to price?") it sickens the heart to see it shot down in mid-flight... it's a little like frankenstein turning against his own inventor ;)"
here's a guy who was hired and paid to do exactly what he did--intellectually masturbate and concoct a financial product so obscure and worthless that nobody would be able to understand it--so that his company could build a market for it, (hedging against it as they always do with such things), and then profit no matter which way the market headed. IT'S WHAT GOLDMAN DOES!!! sometimes they do it by writing the IPO for a new company that may or may not even be solvent. sometimes they do it dreaming up derivatives over cash flow streams from home mortgages. it's all the same shell game: 1. bribe the legislators from both parties (check out which company has contributed most to barney frank's campaign coffers, in case you think it's just republicans who are in the tank for these criminals) so that they appoint and maintain overseeing bodies that rubber stamp the whole criminal enterprise. 2. package and sell your financial snake oil to the unsuspecting public. 3. offer up scapegoats for prosecution in case the PR gets too bad.
it's a great business. now write your congressman and tell 'em that you're in favor of all the new proposed regulations, AND MORE, because, if you're not, you're a fool. this is organized crime of a magnitude that a person can't even imagine, and fab tourre is most definitely NOT the problem.