I am not sure what is happening but it would really appear that various branches of government may be at the very least half serious in their intention to prosecute fraud starting with Goldman Sachs.
I am puzzled because I am not at all convinced this is what is going on.
After years during which fraud was blatant and tolerated, the SEC appears to have done an about face and now seems to actually want to do what its mandate actually states they should do and were supposed to have done all along since their inception.
I mean; seriously folks! It does not take a degree in mathematics to figure out that there is something going on when a company is allowed to report “hidden” assets. The entire construct of free markets and fiduciary duty revolves around transparency. When you allow a company to legally obscure the nature of their assets then you are intentionally compromising one of the pillars of fiduciary duty. If the company in question is a bank, then you are intentionally aiding and abetting the deliberate raping of the public. Especially if said bank is a very large institution with global reach.
So, after several dozen instances when the authorities could have intervened over the past fifteen years, why should they get a wake-up call now? And why so suddenly after the banks in particular have been brought back from the brink with public funds but then allowed to pay off the largest bonuses in history to their employees; this, at a time when the current crisis is variously described as the severest, the most damaging, the most far reaching since the great depression. It beggars belief!
So, something is certainly going on but for now I have no idea what it is or why. Could it be that politicians are actually beginning to feel the effects of public anger and have figured they need to toss this dog a bone? Because if the establishment is really intent on sacrificing Goldman Sachs, I can guarantee that some very high ranking politicians are not going to come out of this one unscathed. Goldman Sachs has spawned some of the highest ranking public officials for now well over two decades and has acted as a half way house for them as they joined subsequent administrations alternating between assignments in the public and private sphere of business. If GS is to go down, they are not going down alone and some bodies are guaranteed to turn up here and there. Besides, if anyone should be sacrificed, why sacrifice the largest and best connected player and the player that has the thickest black book on some of the key people of administrations current and past? It is not like GS was the only one playing fast and loose with the rules. They were just more successful but a whole bunch of other institutions are just as guilty. All you need to do to see the greatest perpetrators of the con is to see which banks have the largest Special Purpose Vehicles on their books (or Special Investment Vehicles, or Entity or similar). JPMorgan, wells Fargo, Bank of America they are all at it including Fannie Mae and Freddy Mac…. just there in this handful of names, you are looking at several hundred Trillion Dollars of funny accounting… that’s hundreds of Trillions!
So, what’s going on?