So I’m trying to follow this whole Goldman Sachs business. As far as I can tell, between all the specialist language and marketing business jargon and bullshit, what appears to have happened is that Goldman had created horrendous subprime mortgages, given to customers they knew could not afford it. They then, along with Hedgefund Paulson and Co decided which mortgages to package up, packaged these mortgages up and sold them on to investors, without disclosing just how toxic the packages were. The moment the packages were sold on, Goldman Sachs bankers then bet against them on the markets, and made a fortune when the whole system eventually failed miserably and investors lost close to $2billion.
They, in effect, created a financial crises for their own massive gain. Goldman Sachs have said they have done nothing wrong. How is that not wrong? Is it not the equivalent of a football manager actively encouraging people to buy tickets for a game, paying his goal keeper to play shit, therefore losing the match, but in the meantime betting that his team will lose the match, thereby making a fortune? Beneath the deceitful business language that Goldman may employ to try to get out of this, aren’t they simply trying to cover up a massive fraud?
After committing such a huge fraud, and causing widespread misery and despair, Goldman has said that their own profits have soared by 91% and plan to pay bonuses for the past three months, to the tune of £3.5billion. The UK Government are still giving government work to Goldman, effectively using tax payers money to enrich a fraudulent firm. We paid the firm £5,000,000 to consult the government on how to deal with Northern Rock, a bank that failed, because of the subprime crises, which seems to have been caused deliberately, by people working for firms like Goldman Sachs.
Goldman said they had done no wrong and that doing what they did, was:
“normal market practice”
Fraud, is normal market practice. What kind of awful defence is that?
The Goldman Sachs website today has this as it’s statement in regard to the case brought against it:
“We are disappointed that the SEC would bring this action related to a single transaction in the face of an extensive record”
In essence, they are wondering why they are being punished for one fraud, when they’ve been good otherwise. As if to say “Oh it was only once! It wont happen again!!” I might go and steal a car, and use that as my defence when I get arrested.
The hedgefund (Paulson and Co) who actually bet against the packages, hoping that mortgage holders would default, and whom also with the help of Goldman, picked which mortgage packages to bet against, are not under any sort of investigation. How is that possible? Is this Capitalism? The head of the hedgefund, John Paulson, reportedly made $2billion in 2008 and $2.4billion in 2009, from betting against subprime mortgages, that he helped to package. After doing this, and causing the entire system to crash, Paulson (who is worth $12billion) said:
“Paulson and Co is not the subject of this complaint, made no misrepresentations and is not the subject of any charges.”
Well, they should be the subject of charges. Paulson himself should be thrown in prison. Which he wont be. Because the system favours rich men in suits, whilst the system spends millions trying to catch people claiming £5 an extra a week in Welfare benefits. The system, is weighted the wrong side. Paulson in 2009 wrote an article for the Wall Street Journal, titled rather ironically “The public deserves a better deal”. Yes the public does deserve a better deal. He’s absolutely right. The entire system needs to change. And it would be a far better deal for tax payers, if they paid for his prison cell, rather than his career in fraudulent gambling.