This should put a smile on Fluffy's face...

[FluffyMcDeath]

Article

[...] what the Tea Party people should have been complaining about this week. The banking industry and corporate America are fighting against proposed financial reform with all the money and influence at their disposal, attempting to preserve a system that would enable them to ransack the country once again.

But we know the Dems are pretty much in bed with the banks.

Remember the hedge fund Magnetar that bet against its own products? The owners covered their bets with ample campaign contributions to Rahm Emanuel.

It's not just the Dems. Republicans want some of that Wall Street action too.

"GOP Takes Aim at Plans to Curb Finance Industry." That’s not surprising. Earlier this year Republican politicians told Wall Street: Give us the scratch and we’ll scrap reform.

The GOP’s SWAT team -- also known as the United States Chamber of Commerce -- has already spent three million dollars to try to kill or cripple a key part of reform -- the proposed new Consumer Financial Protection Agency. With the Chamber as their front, corporations have bankrolled ads that make it seem like the Red Army is at our doorsteps.

These banks need their bottoms spanked and should be split up into "small enough to fail" institutions that go back to doing what they are supposed to do - provide the means to run an economy - not drain it.

[...] Thomas Jefferson, whose birthday we celebrate this week, had it right. Back in 1816, he wrote, "I sincerely believe... that banking establishments are more dangerous than standing armies."

 

[FluffyMcDeath]

Perhaps it isn't a Dem suicide move. seems that the principle evil-doer donates mostly to GOP candidates.

 

[Fade]

A very Fluffy statement
"seems that the principle evil-doer donates mostly to GOP candidates"
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[Fade]

Hey Fluffy this one is even funnier.

 

[FluffyMcDeath]

A very Fluffy statement
"seems that the principle evil-doer donates mostly to GOP candidates"

We can work on your aim later but first you should try taking your weapon out of the holster before you shoot!

 

[FluffyMcDeath]

Hey Fluffy this one is even funnier.

Definitely. Obamas cool million is roughly 3 times what Goldman employees gave to Bush in 2004 when the whole financial industry was backing Bush over Kerry. I'm waiting to see whether it bought them what they want. Will the SEC be called off?

On the other hand, it's refreshing to see a banking scandal the Bush's aren't making money on. Savings and Loan, anyone?

 

[Fade]

Let me rub a little more salt in that wound for you Fluffy.

"Goldman Giving

Goldman Sachs and its employees and family members gave $5.9 million to candidates in the 2007-2008 election cycle, the Washington-based center’s data shows. Three-quarters of that went to Democrats, the non-partisan group said."

 

[FluffyMcDeath]

Let me rub a little more salt in that wound for you Fluffy.

Doesn't hurt a bit. The point is that I've already pointed this stuff out months ago. I've already had my hissy fit about it in 2009. You're not rubbing salt in anything - your just late to the party and you forget to bring beer.

And, when you are replying to something with a link it might be a good idea to go read the link before you assume that you know what's in it - or you might end up sounding like you aren't paying attention.

 

[faethor]

"Goldman Giving

Goldman Sachs and its employees and family members gave $5.9 million to candidates in the 2007-2008 election cycle, the Washington-based center’s data shows. Three-quarters of that went to Democrats, the non-partisan group said."

What can we say? The way Goldman Sachs makes their money is betting on winners. It'd make sense that they bet more on the clear victor, Obama.

 

[redrumloa]

Goldman $achs downgraded, stock dropping more.

http://www.marketwatch.com/story/downgr ... teid=yhoof

Something gives here, Goldman Sachs is too well connected on both sides (especially the donkey side) to be feeling real heat. I wonder if they had affiliated companies take out some major puts on GS that they can cash in right before this heat quietly goes away with a minor fine.

 

[FluffyMcDeath]

Something gives here, Goldman Sachs is too well connected on both sides (especially the donkey side) to be feeling real heat. I wonder if they had affiliated companies take out some major puts on GS that they can cash in right before this heat quietly goes away with a minor fine.

I saw the drop on my regularly scheduled morning stock check. Another significant drop. Looks like the government is going for blood. The SEC case was leveraged into a reason for a congressional haranguing of executives and a discovery of document. Now there is a criminal investigation and the stock takes another hit.

There is more than one thing going on here. Some politicians who took the money are putting up a defense on the legislative side of things where it's boring and won't hit the news much but still impactful. Some of those who took the money are making a show of giving weak defense of the industry but most realize that there is more political advantage in throwing Goldman under the bus than in trying to save them. The more damage they take the more politicians will have to keep there seats as there won't be a comfy seat in Goldman to run to. It could snowball.

On the other hand, it could be just for show and everything will be OK after the election but it's hard to do damage like this and then smooth it all over afterwards. Feelings will have been hurt.

There may also be a strategy to squeeze Goldman into better behaviour or even to drive down the stock price so that a Government takeover can happen (and fair compensation, if required would be more of a bargain). Ultimately this is what has to happen. Goldman needs to be taken over and parted out to new smaller owners. Leaving them as they are is dangerous, it allows Goldman to blackmail the entire country at any time. Squeezing them until they collapse under the weight of their own garbage will destroy the economy. Taking them over, repatriating the TARP money and getting a cut on all of what good paper there is then selling it all back out into small enough to fails will let the junk get unwound in a less damaging way.

The government could even take over all of the bad mortgages and renegotiate them. If the terms could be adjusted to keep people in their homes and spending their income on stimulating the economy instead of sinking it into interest there'd be more of an economy to tax.

 

[Glaucus]