Friday, July 2, 2010

"Nerve" in the Dictionary; Goldman Sacks.

Do ya know what the definition of NERVE is ? It's Goldman Sacks. Goldman Sacks was part of the Derivatives market that very nearly destroyed our economy and helped to plunge us into the deepest Recession on record. As you remember, things got so bad that the government had to step in and bail out a number of banks and investment firms to save the economy from completely failing. Goldman Sacks got a piece of that pie. Then they went after a piece of an even bigger pie. The bailout of A.I.G. That's the outfit that was insuring the bets of companies like Goldman Sacks. Bets like the one that the housing market would collapse, which it did. But the thing is, they were selling bundles of bad mortgages they called Derivatives. Mortgages that were almost certain to default, which would help to cause the bursting of the bubble. Well, Goldman demanded that A.I.G. ( think American Taxpayer) pay them from the bailout money it got. But those insurance policies were selling for about 48 cents on the dollar. That is, 48 cents for other people, but not for Goldman. They wanted and got full price. So, lets see if I can get this right. Goldman bundled toxic mortgages and sold them. They bet they would default by insuring them with A.I.G., they defaulted, they (Goldman) got bailed out, they got paid full price by A.I.G. with bailout money and now they don't understand why we don't love them for screwing us. Well, I for one don't blame them. After all, money from the government didn't come out of their pockets. They're a major corporation. They probably don't pay taxes, or if they do, they pay only a small amount. So, I guess if the money doesn't come out of your pocket, it's found money, right? Fair game, right? See. I told you that's nerve.

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