The NEW Illustrated Guide to Mendacity and Folly in the 21st Century.
Posted on | April 26, 2010 | No CommentsOh, how I wish I’d come up with Matt Taibbi’s description of Goldman Sachs as a “great vampire squid wrapped around the face of humanity.” A prescient lad, he said that even before the revelations this past week about “The Big Short”. Seems these very shrewd operators basically: 1) made a bunch of loans to people they knew had a very good chance of defaulting; 2) bundled them into a security that they noodged Moody’s and Standard and Poors to rate AAA; 3) sold them to unsuspecting investors as a solid investment; and 4) shorted them so that when the price fell, they’d clean up. In fact, the only way they could have lost money would have been for the loans to be repaid. Thus they not only screwed the poor schmucks who couldn’t repay loans (remember the sliding rates that went up after a few years? Let’s stack the deck while we’re at it.) But they screwed their clients.
And when the bottom fell out, they screwed everybody. Lloyd Blankfein–who has an eerie resemblance to Erich von Stroheim, the “Man You Love To Hate”–claims he was doing God’s work, but for the life of me, Blankfein’s God has little to do with any modern God I know–more like Cthulhu (and we’re back to great vampire squids). Senator Dodd from Arkham has heard the call of Cthulhu and has busily crafted a financial reform bill that keeps the monsters and their derivatives intact–it seems mostly concerned with restoring the power of the regulators to wank instead of work and watch internet porn. Not break up the banks that bet AGAINST AMERICANS.
Most recently, Blankfein has had the gall to tell us that if we break up the banks, we will weaken America. Like the worst economic crisis since Black Friday didn’t do that already. Maybe he meant it in relative terms. After all, they broke the economy of the entire world–maybe America would have come out ahead on the deal.
If we’d shorted it.