RISMEDIA, April 20, 2010—It was with a measured amount of glee that I read Friday afternoon that the Securities and Exchange Commission had charged Goldman Sachs, (“We do Gods Work”) with fraud for packing a portfolio full of guaranteed-to-fail loans, lying to investors about the quality of those loans, and then betting on the portfolio to default.
This is what I have been saying for months. Huge money was and is still being made by engineering and then betting on failure through derivatives. Goldman, for their part, isn’t denying that they did that; they’re just saying that it isn’t illegal to do that.
I have been equally amused by the big media reaction to it. Most news outlets had it on the front page of their web sites immediately, but not FOX. One writer asks, “Could this be the tip of the ice berg?” Proving they still