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Matt Taibbi is writing about Lloyd Blankfein’s of Goldman Sachs non apology for "participating in the market ephoria…but proud of the way our firm managed the risk for our clients." Taibbi points out that Goldman helped destroy the world economy and the way they "managed the risk" was by insuring their gambling through AIG and then having Hank Paulson and others use the Federal Government to pay off their gambling debts. Taibbi nails what they did with one of the best descriptions I’ve read of the sub prime mortgage toxic assets mess.
Imagine a meat company that bred ten billion rats, fattened them on trash and sewage, ground their bodies into chuck, and then sold it all as grade-A ground beef to McDonald’s and Burger King, right under the noses of the USDA: this is exactly the same thing, only with debt instead of food. We’re eating it, they’re counting the money.
Taibbi points out that Goldman’s was smart enough not to eat their own rat burgers, but Lehman’s and Bear Stearns weren’t so smart. Read this prequel to an upcoming article in "Rolling Stone" by Taibbi.
Yes, indeed, the Rat fatteners are still in charge and we should be very worried. These guys should be in jail. This was a heist, pure and simple.
9 Comments
This system is going to come crashing down and Goldman Sachs more than participated. Can’t wait for Taibbi’s article next week.
As a friend of mine said recently “Cinch up: It’s going to be one hell of a ride.”
I think you’ve convinced me both of Goldman Sachs’ perfidy and of the undesirability of ground meats.
That’s an absolutely spot on analogy, and the bastards most certainly should be in jail.
Matt truly has a gift, because he’s great at making an otherwise complex topic very easy to grasp, while keeping you laughing (and cussing) all the way.
gee.. is there a link missing up there … i can’t find a thing where you say “read this prequel …bla bla..bla ” ..
The missing link?
thankee mr. why …
Great, great job by Taibbi, thanks very much for linking to it.
Thanks, Boo. Thought I had the link in there and then went off to “UP” and then home to bed. Ah, ADHD.
Oops. Thanks Mr. Why for the link to the great website trueslant.
I wrote a while back that we need a Ferdinand Pecora and not just a Pecora commission to humiliate the folks in public. Pecora himself writes that by embarrassing and exposing the Wall Street cheats that caused the Great Crash of 1929, the people were strongly behind FDR reforms like Glass Steagall. It was amazing theater each day that Pecora relentlessly grilled the Wall Street banksters. Everyone in the country followed these hearings. Taibbi is drawing attention to the same shenanigans. But he can’t do it alone.
Again anyone connected to Goldman Sachs in the government should be booted out and most stuck in jail.