I held myself hostage for a couple hours yesterday as the Senate banking committee grilled a series of reptilian Goldman Sachs executives, both past and present, including current CEO Lloyd Blankfein.
The chief inquisitor was Michigan Dem, Carl Levin, long-time water carrier for the auto industry and fierce opponent of CAFE standards, and therefore fierce opponent of clean air. Levin single- handedly created an instant smash hit drinking game, as every time he quoted the word “shitty”, derived from internal G.S. emails, I downed a shot of Russian vodka, mainly to dull the reality of the charade that was unfolding before me.
In case you missed it, the main issue with Goldman Sachs is that, during the housing bubble, they were selling bundles of toxic mortgage securities to unwitting dupe clients, while their own investment wing was “shorting” the same securities, effectively unloading crap they didn’t want anymore, while raking in $billions in profits on the short side. An analogy would be if a car dealer unloaded a lemon on some sucker while at the same time taking bets on whether the clunker would make it to the next stoplight.
The problem with the senate’s grandstanding clusterfuck was, of course, that it was responsible for the the very deregulation, a shitbomb known as the Gramm-Leach-Bliley Act, that allowed predators like G.S. to engage legally in these activities in the first place. And who, among others, fully endorsed Gramm-Leach-Bliley? Of course, the good Senator Levin.
But can you blame the Obama administration and congressional democrats for flipping the populist card? After all, Obama’s single largest campaign contributor turns out to be Goldman Sachs, and dem pols have been raking in Wall Street moolah ever since they decided the trade unions and their campaign contributions were counter productive to their newly furbished image as Global Capitalists. And if the proposed banking “reform” that Democrats are proposing is anything like the recently-passed health care “reform”, expect so many loopholes and exemptions Goldman, et al, will merely have to create another “legal” form of corporate fraud.