Readers of Rajjpuut’s recent blog, “Bend Over, America, Here Comes Your Re-Raping,” know that Goldman Sachs is very much a villain in league with the Obama adminstration in plotting the birth of Cap and Trade legislation that will greatly profit them both but literally kill the United States. So GS, often known as “Government Sachs” is a wet buffalo chip at best . . . ‘nuff said. Nevertheless, the current senate hearings on Goldman Sachs, while potentially fruitful (they might actually find evidence that Goldman Sachs extra-actively endorsed the attractiveness of the hedge vehicles in question to the folks who lost about a billion dollars gambling upon them) but at first glance this is a case of the absolutely least principled and least fiscally-disciplined folks in the world pointing their wagging fingers at someone else by insinuating GS was one of the chief causes of the financial meltdown from October, 2007 to present. Unless a smoking gun is found, which never happens during these inane senate hearings, the very best they can say is that Goldman Sachs profited from a situation in 2007 which is not allowed today in 2010, and since the Constitution wisely prohibits ex post facto legislation . . . the livid senators can spin on that little detail till the seas dry up.
As Rajjpuut has explained repeatedly in the last year, the real responsibility for the meltdown belongs in five camps:
o Progressive legislators (80% from among the Democrats and Democrat-backing Independents, Mr. Lieberman) who passed the four vile mortgage guarantee laws beginning with the Community Reinvestment Act of 1977 (CRA ’77) through the Clinton ’98 mortgage-guarantee legslation that put the whole process on steroids in response to a housing crisis that never existed sinced the United States at 64% own-home ownership was by far the highest in the world . . . a government interference boondoggle of the highest order detailed briefly in the link above (the first raping of Americans in the 21st Century)
o ACORN which plotted to use these four mis-conceived and poorly written laws deliberately as a Cloward-Piven vehicle to transfer wealth and bring the country to its knees
o The lawyers like Barak Obama who were hired by ACORN to shake down the banks and other lending institutions and force them to make terribly unwise and fiscally negligent loans in accord with the horrible laws (see the details about the loans recipients at the link above) to people with no chance of ever paying off those loans and
o Greedy firms and banks who abandoned all pretense of fiscal probity in the search for the quick buck by eagerly buying bundled mortgages, make that bundled worthless mortgages.
o The FEDERAL RESERVE whose chiefs, Bernanke and especially Alan Greenspan acted like sideline cheerleader for the developing “derivatives” market. Greenspan claimed in 2002 that derivatives actually would act “to prevent ALL possibility of future market freefalls.
In this light, the hedging that GS was “guilty of” was merely sound business practice (selling both sides of an “issue” and profitting from commissions. The fact that Goldman Sach prospered (if no smoking gun is found at the Senatehearings) so much puts their fiscal responsibility in the highest light compared to say, AIG, Bear Steans, Leyman Bros., etc., etc., ad nauseum who risked their customers’ well-being with their worthless judgment.
This senate hearing is a monstrous smokescreen for two obvious reasons.
A. Today Greece went under. Her history is that they were a few years back running at a questionable 45% debt to Gross Domestic Product ratio (D/GDP) and today are slightly over 100% on that ratio and basically bankrupt with their debt paper (bonds, treasury notes) valued at pennies on the dollar. What’s not said is that we Americans were ourselves operating at a more questionable 50% D/GDP ratio in late 2008 and now under Obama are already at 75% D/GDP and well on the road to becoming the next Greece. And
B. There is only one known model for recovery applicable. To end the “Unknown Depression of 1920” sometimes called the “Invisible Depression,” Warren G. Harding and after Harding’s death Calvin Coolidge cut government spending 49% and cut taxes 40%. The group in the house and senate and the oval office today has dramatically increased spending and even more dramatically upped taxes. The result will unquestionably be a long, painful Depression of the type engineered by the Progressive Republican Harding and the Ultra-Progressive Democrat Franklin D. Roosevelt which lasted the better part of thirteen years.
Until their own house is in order, politicians hold NO RIGHT to criticize anyone. As with virtually everything that’s happened since Obama’s inauguration, the whole situation smacks of a world being turned upside down the legislators are severely scolding Wall Street for the fiasco which their four ill-advised criminal laws created. Rajjpuut says “criminal” because there was surely never any thought of mortgage guarantees for the American Republic when the founding fathers created our Constitution. Obama creates a law forcing Americans to buy a commodity and his minions from the IRS can “ask for your papers” to verify that you are not acting illegally. Somehow that’s all “fine and dandy,” but policemen in Arizona can’t check IDs to make sure that everyone in their state is legally there? Until the world gets righted again, we’re going to see a lot of this crap.
Ya’all live long, strong and ornery,