Really, doesn't this whole thing have the feel of a show trial? "Let the people have their moment and then we can get back to business as usual." I figure, if this is what they're actually admitting, God only knows what else they were up to:

WASHINGTON — Goldman Sachs' chief acknowledged Wednesday that the investment bank engaged in "improper" behavior in 2006 and 2007 when it made huge bets on a housing downturn while peddling as safe more than $40 billion in securities backed by risky U.S. home loans.

Lloyd Blankfein, Goldman's chairman and chief executive, made the surprising concession at the opening hearing of the Financial Crisis Inquiry Commission, a 10-member panel that Congress created to investigate and lay out for the public the causes of the worst financial crisis since the Great Depression.

Blankfein and senior officers of three other of the nation's most prominent banks told the panel that serious flaws in their risk models and business practices contributed to Wall Street's meltdown and the massive taxpayer bailouts that followed. The commission also heard testimony that the banks and quasi-government mortgage giant Fannie Mae recklessly took on as much as 95 times more risk than they could cover, and that Wall Street excels "at pulling the wool over the eyes of the American people."

Blankfein faced the toughest questioning.

Commission Chairman Phil Angelides, a former California state treasurer, warned Blankfein that he'd be "brutally honest" in his questioning. He asked why Goldman thought it was necessary to take out protection against investment-grade mortgage securities it was selling by purchasing insurance-like contracts known as credit-default swaps. Angelides likened it to selling a car with knowledge it had faulty brakes and then taking out an insurance policy on the buyer.

"I do think the behavior is improper, and we regret . . . the consequence that people have lost money in it," Blankfein told Angelides.

I don't want Blankfein's feigned regret. I want him to have to live the rest of his life eating ramen noodles and living in a cardboard box on the street, just like the people who lost their life savings have to do.

Until Wednesday, Goldman had insisted that it was merely managing its risks when it placed "hedges," in the form of wagers against the housing market, various venues including in secret offshore deals, with insurance giant American International Group and on a private London exchange.

In November, McClatchy reported exclusively that Goldman failed to tell investors about its contrary bets while selling $39 billion in risky mortgage securities it had issued, and another $18 billion in similar bonds issued by other firms. The Securities and Exchange Commission and Congress are investigating Goldman's swap dealings, said knowledgeable people who asked not to be identified because of the sensitivity of the issue.

While conceding that its contrary bets were improper, Blankfein said that in most cases Goldman took those positions to offset bets it had underwritten for clients seeking to wager on a housing downturn.

Life is hard enough and the mainstream media has a lot to answer for in making it so much harder –financial ‘experts’ like Jim Cramer spreading Wall Street rumours and urging viewers to buy Bear Stearns stock just before the investment bank collapsed, the Investor’s Business Daily’s scare-mongering with false claims the health care reform bill would make private medical insurance ‘illegal’, Lou Dobbs and his incessantly silly conspiracy theory over Obama’s birth certificate, Hardball’s collaboration with Karl Rove in the intentional misleading coverage of the Plame CIA leak, the non-stop maudlin eulogies for Michael Jackson drowning out any other more boring news like, oh say, more soldiers killed in Afghanistan, Glen Beck’s high-pitched hysterical assault on our (largely medically uninsured) eardrums, and now...

… Mom Jeans.

This is big news, according to Greg Gutfeld and the immaculately bleached and botoxed Laura Ingaham on Fox’s O’Reilly Factor as the first ‘dork’ President of the United States has appeared in public wearing Mom Jeans, bought with a gift certificate, apparently, from the now bankrupted Mervyn’s. Americans should be scared – scared, I tell ya – that the POTUS has lost his cool and dresses like a band teacher. Greg Gutfeld barely cracks a smile as he warns us ‘this isn’t going to intimidate Putin’ and ‘our adversaries in Iran will not take [him] seriously,’ especially since he also throws a baseball ‘like a little girl’… all symbols of something ‘deeper and more sinister’…

I kid you not. I wish I did. CNN’s Jeanne Moos has also had a good laugh at the President’s expense as well, linking Mr Obama’s fashion faux pas to that other political heavyweight, Jessica Simpson, who was even shown being hounded by the media for her stylistic stumble. Moos brings on celebrity fashionista Robert Verdi (wearing horizontal orange striped shirt, wrinkled khaki chinos and a pair of oversized white rimmed sunglasses down low on his forehead) for an in-depth queer eye for the straight guy study of the President’s pants. ‘Too short, frumpy, two big tree trunk legs, terrible – they’re Mom Jeans, for sure’.

Continue reading »