Contrasting strategiesTHE DEMOCRAT PARTY IS NOW DOMINATED BY LEFTISTS WHO ARE BASICALLY HOSTILE TO THE VERY CONCEPT OF PROFIT AND HATE THE PROFIT MOTIVE AS IF IT WAS AN EVIL SIN THAT MIGHT SOME DASY BE VANQUISED BY PROGRESSIVISM.
April 29th, 2010 The Washington Post’s editorial on the Goldman hearings makes an interesting point about what it says were the contrasting strategies of that firm and Citigroup:the broader implication raised by senators at Tuesday’s hearing — that Goldman somehow rigged the market in subprime mortgages, and that this led to the meltdown — does not strike us as a terribly useful or even accurate analysis of the crisis. Yes, in its capacity as a market-maker, the firm sold complex derivatives to market players who wanted to bet on a rosy view of housing long after Goldman had turned more pessimistic…
these were large, sophisticated institutional investors who had the opportunity to conduct the same analysis of economic data that Goldman did. They knew that there was someone on the short side of every trade. And Goldman had no legal obligation to trade in the same direction as these clients did.
Indeed, if it had, then Goldman could not have started hedging its own bets on housing early, as it did. The firm would have lost billions, and it might have wound up needing an even bigger bailout by U.S. taxpayers than it actually got.
It could have ended up like Citigroup, which tried to ride the bubble until it was too late and had to be propped up with hundreds of billions of dollars in federal cash and credit guarantees.
THEY THINK THAT LOSERS ARE VICTIMS AND WINNERS ARE GREEDY CHEATS.
THEY NEED TO GROW UP, WISE UP OR STFU.
ANOTHER MAJOR REASON THEY'RE ATTACKING GOLDMAN IS TO DIVERT ATTENTION FROM THE MAJOR ROLE CONGRESS HAD IN CREATING THE HOUSING BUBBLE: VIA THE CRA AND FANNIE MAE.
IT WON'T WORK.
AND IN NOVEMBER, WE'RE GONNA TOSS THEM OUT OF OFFICE.