Disturbing article about Paulson/Goldman Sachs relationship during crisis.

[tvarad]

Here's a NYT article that hints strongly at a conflict of interest between Paulson and his alma-mater during the financial crisis when he had to play God, something that I thought was obvious when the whole thing was unfolding.

I personally think that the revolving door between Goldman Sachs and Treasury over decades has led to a serious conflict of interest and it's current dominance is of extreme concern now that it is one of the few investment banking business left standing. Once the economy has stabilized, there should be a serious overhaul of the regulatory agencies to shine a brighter light on it's activities and start creating viable competition in the investment banking area.

 

[Phokus]

Goldman Sachs runs our government and our economy basically, this isn't a surprise.

 

[Moonbeam]

Originally posted by: Phokus
Goldman Sachs runs our government and our economy basically, this isn't a surprise.

I don't know. I got the impression it WAS competition that got us into trouble, all the focus on shareholders and the next quarter and bonuses and all. Clearly the government needs to step in and take over investment banking and run it with a bunch of laid back nitwits like run the Post Office. And they can provide the same service to some idiot who lives out in the weeds in Kansas.

 

[LunarRay]

You do realize that the FED Board folks do not have to divest themselves of their holdings (with the below quoted restrictions as an exception) even though actions or inactions taken by them... especially in the FOMC can and usually do have consequences of major import to the Market and the financial houses that are not entwined as below... Although, I don't think any do.. it sort of shows that motive can attach in the mind of some at actions taken...

"Is it legal for Board employees to own stock or to trade in the market?
Yes, generally. Board employees, and their spouses and minor children, are allowed to own or trade stock, except the stock of depository institutions or affiliates of such institutions. Also, employees who have ongoing access to the most sensitive Federal Open Market Committee information, and their spouses and minor children, may not own stock in primary government securities dealers or their affiliates, and they are restricted as to when they may buy and sell securities."

 

[LunarRay]

Originally posted by: Moonbeam

Originally posted by: Phokus
Goldman Sachs runs our government and our economy basically, this isn't a surprise.

I don't know. I got the impression it WAS competition that got us into trouble, all the focus on shareholders and the next quarter and bonuses and all. Clearly the government needs to step in and take over investment banking and run it with a bunch of laid back nitwits like run the Post Office. And they can provide the same service to some idiot who lives out in the weeds in Kansas.

Well... , the PO has shown it is in need of major cost cutting... I think in Congress they indicated Saturday delivery was going to end..

But, more to the point... (I think) is the Law as it stood when all this Financial Voodoo was employed. When investors have a Trillion $ to invest usually real estate is a pretty good place... until a drop in the market value of the underlying asset makes the paper holder turn into a um.... poor person(s)... That seems less like competition and more like Greed..

(Perhaps )

 

[Lemon law]

Ever since and even before the financial meltdown hit in mid 2008, I have always regarded Hank the Crank Paulson as a good part of the problem and not any of the solution. Asleep at the switch before the crisis happened, then a big advocate of total bailouts, and when congress demanded he end all bonuses, he ignored them.

Hank the Crank Paulson has done more damage to the US economy than anyone is history, and as a total lying sack of shit, he almost makes Madoff look honest.

I just wish I could say better things about Geitner or Bernanke. As for Greenspan, he was an idiot too but lucky enough to get out before the bottom dropped out. With idiots guiding our economy and the foxes guarding the hen house, its no wonder we have a total wreckage of the world economy.

 

[tvarad]

Originally posted by: Moonbeam

Originally posted by: Phokus
Goldman Sachs runs our government and our economy basically, this isn't a surprise.

I don't know. I got the impression it WAS competition that got us into trouble, all the focus on shareholders and the next quarter and bonuses and all. Clearly the government needs to step in and take over investment banking and run it with a bunch of laid back nitwits like run the Post Office. And they can provide the same service to some idiot who lives out in the weeds in Kansas.

No, it was not competition, it was the thinking that the financial markets were capable of policing themselves that brought about this debacle. And there was ample precedent in the '80s Savings and Loan scandal to prove that, where money is involved, there's no such thing as over-regulation. As the former Reserve Bank of India (Federal Reserve equilvalent) governor Y.V.Reddy put it "if bankers were given the opportunity to sin, they would sin".

 

[Moonbeam]

Originally posted by: tvarad

Originally posted by: Moonbeam

Originally posted by: Phokus
Goldman Sachs runs our government and our economy basically, this isn't a surprise.

I don't know. I got the impression it WAS competition that got us into trouble, all the focus on shareholders and the next quarter and bonuses and all. Clearly the government needs to step in and take over investment banking and run it with a bunch of laid back nitwits like run the Post Office. And they can provide the same service to some idiot who lives out in the weeds in Kansas.

No, it was not competition, it was the thinking that the financial markets were capable of policing themselves that brought about this debacle. And there was ample precedent in the '80s Savings and Loan scandal to prove that, where money is involved, there's no such thing as over-regulation. As the former Reserve Bank of India (Federal Reserve equilvalent) governor Y.V.Reddy put it "if bankers were given the opportunity to sin, they would sin".

Nobody cheats who is not interested in advancing his own interests over others.

And, LR, the problem with the Post Office is that the need for the function it fulfilled is disappearing.

 

[StageLeft]

Even without the article this was already obvious. Paulson and then that guy assigned to oversee the cash both ex GS people. I'm positive there is something bad going on.

 

[Hacp]

And Geithner is from the same freaking club!

 

[GeezerMan]

Captain Renault: I'm shocked, shocked to find that gambling is going on in here!
[a croupier hands Renault a pile of money] Casablanca 1942

 

[StageLeft]

link

From CNN, paulson and goldman CEO talked a lot during crisis. Smells and looks like a duck.

 

[Moonbeam]

Originally posted by: Skoorb
Even without the article this was already obvious. Paulson and then that guy assigned to oversee the cash both ex GS people. I'm positive there is something bad going on.

You aren't positive at all. What is happening is that you are projecting your self hate out there and assuming you are going to get something bad just like you feel you deserve.

It's why folk say, why does this always happen to me, and just my luck. It is the wisdom of the unconscious speaking a truth you are unconscious of. You conquer that self hate and you'll become a hot knife in a sea of butter and roses will follow you everywhere.

 

[tvarad]

Some new revelations re: the bailout.

It looks like Paulson flipped the bird at Congress once he had gotten the ransom, sorry, bailout money from it:

Where did that bank bailout go? Watchdogs aren't entirely sure.
...
One of the most prominent watchdogs is Elizabeth Warren , a Harvard Law School professor who chairs a TARP oversight panel created by Congress .

Her panel has released 10 major reports that examine TARP's plans and policies, finding that much of the work by the Treasury and the Federal Reserve has been opaque, with unclear or contradictory goals.

One report took Treasury to task for vastly undervaluing more than $250 billion in transactions with the country's major banks, and another suggested several ways to revamp federal regulation over the financial sector. Other reports have criticized the Treasury for its initial defensiveness in opening its books.

Despite its mandate, however, the panel doesn't have subpoena power. That means it can ask, but can't compel, officials from Treasury, the Federal Reserve or the nation's banks to testify.

Henry Paulson , the Treasury secretary under former President George W. Bush , repeatedly stiff-armed the panel. Timothy Geithner , the current secretary, has been more open, but so far has testified just once before Warren's group. Geithner is scheduled to appear again in September, and has agreed to do so quarterly, and two other senior Treasury officials also have appeared.
.....

 

[StageLeft]

Originally posted by: Moonbeam

Originally posted by: Skoorb
Even without the article this was already obvious. Paulson and then that guy assigned to oversee the cash both ex GS people. I'm positive there is something bad going on.

You aren't positive at all. What is happening is that you are projecting your self hate out there and assuming you are going to get something bad just like you feel you deserve.

It's why folk say, why does this always happen to me, and just my luck. It is the wisdom of the unconscious speaking a truth you are unconscious of. You conquer that self hate and you'll become a hot knife in a sea of butter and roses will follow you everywhere.

I'm not positive, but I am "pretty sure" because as my other post said if it looks and smells like a duck it's ex-GS employees at the highest level of monetary policy doing something naughty.

 

[Moonbeam]

Originally posted by: Skoorb

Originally posted by: Moonbeam

Originally posted by: Skoorb
Even without the article this was already obvious. Paulson and then that guy assigned to oversee the cash both ex GS people. I'm positive there is something bad going on.

You aren't positive at all. What is happening is that you are projecting your self hate out there and assuming you are going to get something bad just like you feel you deserve.

It's why folk say, why does this always happen to me, and just my luck. It is the wisdom of the unconscious speaking a truth you are unconscious of. You conquer that self hate and you'll become a hot knife in a sea of butter and roses will follow you everywhere.

I'm not positive, but I am "pretty sure" because as my other post said if it looks and smells like a duck it's ex-GS employees at the highest level of monetary policy doing something naughty.

Well I know that I don't know and I know I am suspicious of everybody, and therefore suspicious of my own suspicions and I know I was trained to hate bankers and high rolling financial people because I live among self hating people who hate anybody who has anything. But I also know I once gave a bum a dollar so there must be something good in everybody, and who knows, this guy just maybe maybe maybe was worried the whole economy would go into the tank like 29 and we'd be fubared for years and years and years if he didn't do something. But I don't read minds so I will never know for sure. You may be right and I think we should pay attention to intuition, but I know we can confuse intuition with a lot of other things.