Friday, 15 January 2010

RECAP: How Goldman Sachs Made Tens Of Billions Of Dollars From The Economic Collapse Of America In Four Easy Steps

Step 1: Sell mortgage-related securities that are absolute junk to trusting clients at vastly overinflated prices.

Step 2: Bet against those same mortgage-related securities and make massive bets against the U.S. housing market so that your firm will make massive profits when the U.S. economy collapses.

Step 3: Have ex-Goldman executives in key positions of power in the U.S. government so that bailout money can be funneled to entities such as AIG that Goldman has made these bets with so that they can get paid after they win their bets.

Step 4: Collect the profits - Goldman Sachs is having their "most successful year" and will end up reporting approximately $50 billion in revenue for 2009.

http://theeconomiccollapseblog.com/archives/how-goldman-sachs-made-tens-of-billions-of-dollars-from-the-economic-collapse-of-america-in-four-easy-steps

This is clearly an act of financial fraud. Arrest warrants for those involved in this scam need to be issued.

(I decided to repost this story in light of all the lame excuses being offered by the banking executives in recent days in order to justify their bonuses and their worth to society. It's profits at the expense of the taxpayer and the health of the broader economy. Sophisticated investors can make money even when the markets drop. However, the poor schmuck in the street will just have to suffer the consequences as the economy goes on a roller-coaster ride.)

[Posted at the SpookyWeather blog, January 15th, 2010.]

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