By Greg Gordon | McClatchy Newspapers
WASHINGTON — In 2006 and 2007, Goldman Sachs Group peddled more than $40 billion in securities backed by at least 200,000 risky home mortgages, but never told the buyers it was secretly betting that a sharp drop in U.S. housing prices would send the value of those securities plummeting.
Goldman's sales and its clandestine wagers, completed at the brink of the housing market meltdown, enabled the nation's premier investment bank to pass most of its potential losses to others before a flood of mortgage defaults staggered the U.S. and global economies.
Only later did investors discover that what Goldman had promoted as triple-A rated investments were closer to junk.
Now, pension funds, insurance companies, labor unions and foreign financial institutions that bought those dicey mortgage securities are facing large losses, and a five-month McClatchy investigation has found that Goldman's failure to disclose that it made secret, exotic bets on an imminent housing crash may have violated securities laws.
"The Securities and Exchange Commission should be very interested in any financial company that secretly decides a financial product is a loser and then goes out and actively markets that product or very similar products to unsuspecting customers without disclosing its true opinion," said Laurence Kotlikoff, a Boston University economics professor who's proposed a massive overhaul of the nation's banks. "This is fraud and should be prosecuted."
The firm benefited when Paulson elected not to save rival Lehman Brothers from collapse, and when he organized a massive rescue of tottering global insurer American International Group while in constant telephone contact with Goldman chief Blankfein. With the Federal Reserve Board's blessing, AIG later used $12.9 billion in taxpayers' dollars to pay off every penny it owed Goldman.
By David Edwards and Daniel Tencer
Sunday, November 1st, 2009 -- 11:28 am
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UPDATE: As Raw Story reported earlier Sunday, the moderate Republican candidate running for the US House in New York's 23rd congressional district has thrown her support to the Democratic candidate after dropping out of the race.
Dede Scozzafava, whose campaign was upended when fellow Republicans Sarah Palin, Newt Gingrich and others openly supported a more conservative third-party candidate, has officially backed her erstwhile Democratic rival, Bill Owens.
The move is certain to pour more fuel on a political fire that ABC's George Stephanopoulos described on Sunday as "a bit of a Republican civil war."
The Watertown Daily Times in upstate New York reports that Scozzafava released the following statement:
You know me, and throughout my career, I have been always been an independent voice for the people I represent. I have stood for our honest principles, and a truthful discussion of the issues, even when it cost me personally and politically. Since beginning my campaign, I have told you that this election is not about me; it's about the people of this District.
Because, of course, he is not. The American people, most of us, believe that the Commander-in-Chief is actually at the head of the government. It has probably never been true. Somebody like the Chief of Staff is the final gatekeeper, deciding who and what information gets to the President.
Another lender bites the dust. Tell us something we don't know, Geithner. It might have been better for Karzai if he supported a run-off than let his challenger quit. Japan's approach to CO2 emissions. So much for GOP "bi-partisanship". More on Ahnie's "no new taxes" backdoor tax rape. On a related note, an older article on Cali taxpayers getting shit for their taxes.
When banks fail in our economy, it is a good thing. It helps to make the larger banks stronger, which makes us less likely to have to bail them out in the future.
You think any non-neo-cons will make a statue for Dumbya? Gotta be a bitch after frequently attempting to take Bubba down during his two terms for him to be remembered better in foreign policy, too.
I now work for a much smaller company, doing mainly surveying, consulting for municipalities. Out in Winter Park now. Still getting used to the time change...
My brother-in-law was a union electrician (Disney, in CA) but left it behind to, gulp, move to E. Washington about six years back. Small-company employed, he ran a grounding rod through his hand almost a year ago, hasn't worked since. No benefits whatsoever. Tough times for him and my sis.
I'm fortunate, so far. I've got zero insurance with my present company. But good thing is that I don't climb anymore. I do work out in the roadways all day, and we both know how great FL drivers are...I'm grateful everyday I come home in one piece.
Gotta hit it and get some work done. Maybe I'll get back for the Grayson chat. Gonna be around?
I swear, Joe Scarborough is going Beck on his audience this morning. Somewhere over the weekend in his travels he must have misplaced that little thing he calls his mind.
He says the conservatives are not all about gay rights and abortions. Is he kidding himself or is he crazy or is he full of shit.....or all of the above?
He said "idiot left wing bloggers" would attack him. Okay, I'm in!
.................the healthcare bill is a bail-out for the Insurance Industry, and O-bought-ma wants Snow-jobs' 'trigger option'. I wish we had a Democratic party. I wish..................................
I'll post my question here with the hopes that someone will ask it for me. Maybe cut and paste it. Or whatever.
" Congressman Grayson:
Hello sir, First I'd like to say thank you for your stance you've taken against the hyperbolic Republicans. Or, should I just come out and call them what they are? Hypocritical liars.
Thank you for taking the time out of your schedule and visiting us.
Things must be starting to get hectic now.
Here is my question for you Congressman:
This regards anti trust and the lack of. " Are you going to try to instate a anti trust regulation aimed at the Ins industry?"
I ask this because of all the rhetoric aimed at stopping health care reform. By the very same people who claim health care reform is anti free market.
How can health ins be pro free market when then control the pricing?
This is ludicrous. With the anti trust exemption, they are allowed to divide up states and set the price. This is the kind of bs that drives me nuts. Most of the people who are against health care reform (common citizens) Don't even realize that they're being duped.
I could go on and on. But I have to go to work. Then I have some personal matters to attend to.
Thank you for your time Congressman Grayson.
And thank you to whom ever posts my question.
mudshark.
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http://satiricalpolitical.com/2009/10/31/gops...
http://tvbythenumbers.com/2009/11/01/fox-nfl-...
Can they take Limpballs and leave him behind?
.
By Greg Gordon | McClatchy Newspapers
WASHINGTON — In 2006 and 2007, Goldman Sachs Group peddled more than $40 billion in securities backed by at least 200,000 risky home mortgages, but never told the buyers it was secretly betting that a sharp drop in U.S. housing prices would send the value of those securities plummeting.
Goldman's sales and its clandestine wagers, completed at the brink of the housing market meltdown, enabled the nation's premier investment bank to pass most of its potential losses to others before a flood of mortgage defaults staggered the U.S. and global economies.
Only later did investors discover that what Goldman had promoted as triple-A rated investments were closer to junk.
Now, pension funds, insurance companies, labor unions and foreign financial institutions that bought those dicey mortgage securities are facing large losses, and a five-month McClatchy investigation has found that Goldman's failure to disclose that it made secret, exotic bets on an imminent housing crash may have violated securities laws.
"The Securities and Exchange Commission should be very interested in any financial company that secretly decides a financial product is a loser and then goes out and actively markets that product or very similar products to unsuspecting customers without disclosing its true opinion," said Laurence Kotlikoff, a Boston University economics professor who's proposed a massive overhaul of the nation's banks. "This is fraud and should be prosecuted."
http://www.mcclatchydc.com/227/story/77791.html
Not.
.. you wanna violate a Corporation's right to free speech?
.. just because their opinion turned out to be incorrect?
The US Constitution guarantees Freedom of Speech, right?
(Apparently Moody's et al have successfully argued precisely that .. bummer, eh?)
The part that really turned my stomach:
Emphasis is mine, shame is Paulson's.
By David Edwards and Daniel Tencer
Sunday, November 1st, 2009 -- 11:28 am
Share on Facebook Stumble This!
UPDATE: As Raw Story reported earlier Sunday, the moderate Republican candidate running for the US House in New York's 23rd congressional district has thrown her support to the Democratic candidate after dropping out of the race.
Dede Scozzafava, whose campaign was upended when fellow Republicans Sarah Palin, Newt Gingrich and others openly supported a more conservative third-party candidate, has officially backed her erstwhile Democratic rival, Bill Owens.
The move is certain to pour more fuel on a political fire that ABC's George Stephanopoulos described on Sunday as "a bit of a Republican civil war."
The Watertown Daily Times in upstate New York reports that Scozzafava released the following statement:
You know me, and throughout my career, I have been always been an independent voice for the people I represent. I have stood for our honest principles, and a truthful discussion of the issues, even when it cost me personally and politically. Since beginning my campaign, I have told you that this election is not about me; it's about the people of this District.
http://rawstory.com/2009/11/jarrett-gop-extreme/
of viral pneumonia in Ukraine?
http://davidrothscum.blogspot.com/2009/10/has...
just burn the food supply , close the borders , hey whats 10-15 million ! .
I wish I were young enough to go back and learn enough about this stuff to get a job out chasing damn tornadoes!
It would be a rush for sure
How about the Rahm Emmanuel "I found another bluedog to elect" costume.
..........yeh, Rahmie and HIS DINO stable............f**king PUKIE!!!! How did this unelected creature acquire so much POWER????
Because, of course, he is not. The American people, most of us, believe that the Commander-in-Chief is actually at the head of the government. It has probably never been true. Somebody like the Chief of Staff is the final gatekeeper, deciding who and what information gets to the President.
Another lender bites the dust. Tell us something we don't know, Geithner. It might have been better for Karzai if he supported a run-off than let his challenger quit. Japan's approach to CO2 emissions. So much for GOP "bi-partisanship". More on Ahnie's "no new taxes" backdoor tax rape. On a related note, an older article on Cali taxpayers getting shit for their taxes.
When banks fail in our economy, it is a good thing. It helps to make the larger banks stronger, which makes us less likely to have to bail them out in the future.
Think I can get a job in this administration?
You didnt use the repug secret word of the day in your sentence. You were dithering.
the character on the far right is clearly labelled: REPUBLICAN! LOL!! notice his fox news t-shirt?
You think any non-neo-cons will make a statue for Dumbya? Gotta be a bitch after frequently attempting to take Bubba down during his two terms for him to be remembered better in foreign policy, too.
What's that sound I hear? I'm getting so used to it...oh yeah, heads exploding
"NATO officials said the peacekeepers were also on alert, although no additional security measures were taken."
Is there anywhere that bush could go in the world without massive disruption? Must be great to be so hated.
be noted though is that the Pukes can't handle foreign policy either, along with our tax purse strings, etc. without total disaster and destruction.
Lets just say they're totally useless
My latest scary video is called "Hating ACORN":
http://www.youtube.com/watch?v=j2zh3AUTjbU
He also hates unionized attorneys.
http://pet.imageg.net/graphics/product_images...
(Even scarier)
http://perezsolomon.files.wordpress.com/2009/...
(Everyone knows it should be mustard, not ketchup).
If you don't have to work or can get away, should be good!
http://crooksandliars.com/john-amato/alan-gra...
I'm guessing you work for one of the bigger tree services, is it D?, or A? or can't you say? ;)
I now work for a much smaller company, doing mainly surveying, consulting for municipalities. Out in Winter Park now. Still getting used to the time change...
IBEW member here, due to injury I haven't worked the last eight
My brother-in-law was a union electrician (Disney, in CA) but left it behind to, gulp, move to E. Washington about six years back. Small-company employed, he ran a grounding rod through his hand almost a year ago, hasn't worked since. No benefits whatsoever. Tough times for him and my sis.
to take care of you, once you're on comp, you're on your own.
Found that out the hard way, by getting hurt.
I'm fortunate, so far. I've got zero insurance with my present company. But good thing is that I don't climb anymore. I do work out in the roadways all day, and we both know how great FL drivers are...I'm grateful everyday I come home in one piece.
Gotta hit it and get some work done. Maybe I'll get back for the Grayson chat. Gonna be around?
should be...be safe
I swear, Joe Scarborough is going Beck on his audience this morning. Somewhere over the weekend in his travels he must have misplaced that little thing he calls his mind.
.
Of bizarre talking points he can't keep any of them straight
He says the conservatives are not all about gay rights and abortions. Is he kidding himself or is he crazy or is he full of shit.....or all of the above?
He said "idiot left wing bloggers" would attack him. Okay, I'm in!
Saddam had WMD's too doncha know.
1 out of the 3 G's...they are so predictable, when the 3 G's don't work, hit 'em with the big C(ommunists). It ain't working anymore.
"that little thing he calls his mind"
I guess he has always been both mindless and feckless.
Maybe lacking more of the feck?
http://www.youtube.com/watch?v=V4FetxxflGY&fe...
http://www.nytimes.com/2009/11/02/nyregion/02...
.................the healthcare bill is a bail-out for the Insurance Industry, and O-bought-ma wants Snow-jobs' 'trigger option'. I wish we had a Democratic party. I wish..................................
I'll post my question here with the hopes that someone will ask it for me. Maybe cut and paste it. Or whatever.
" Congressman Grayson:
Hello sir, First I'd like to say thank you for your stance you've taken against the hyperbolic Republicans. Or, should I just come out and call them what they are? Hypocritical liars.
Thank you for taking the time out of your schedule and visiting us.
Things must be starting to get hectic now.
Here is my question for you Congressman:
This regards anti trust and the lack of.
" Are you going to try to instate a anti trust regulation aimed at the Ins industry?"
I ask this because of all the rhetoric aimed at stopping health care reform. By the very same people who claim health care reform is anti free market.
How can health ins be pro free market when then control the pricing?
This is ludicrous. With the anti trust exemption, they are allowed to divide up states and set the price. This is the kind of bs that drives me nuts. Most of the people who are against health care reform (common citizens) Don't even realize that they're being duped.
I could go on and on. But I have to go to work. Then I have some personal matters to attend to.
Thank you for your time Congressman Grayson.
And thank you to whom ever posts my question.
mudshark.
http://www.cnn.com/video/#/video/world/2009/1...
Heidi Collins embarrassed by some real talk out of Afhganistan
http://pics.livejournal.com/mzflux/gallery/00...
CLICK ON THE PICTURES TO ENLARGE
.
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