Goldman CEO Denies Wrongdoing in Crisis

The CEO of Goldman Sachs testily defended his company's ethics and business practices during the nation's financial crisis , saying customers who bought securities from the Wall Street giant came looking for risk "and that's what they got." (April 27)

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News & Politics

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[ytgv3fc7]

@billyelliot1975 you definitely got that right. I am still shocked idiots would sign up for 100% mortgages but maybe they planned on defaulting anyways, some of them. It's an attempt at voluntary slavery that people should have known better would end badly. So long as people really calculate properly the amount a borrower can repay, for real, then you can get a stable income-source. Lots of people seemed honest enough to try to repay those.

[billyelliot1975]

@ytgv3fc7 Goldman received approx 1% of bailout monies and also make up approx 1% of the CDO market...anyone remember Freddie Mac and Fannie Mae/GM etc??? What caused the crisis to be honest was cheap credit from the residential mortgage market (the asset behind many of the product traded by all financial institutions including AIG). People with 100%+ loans is just plain irresponsible and I really can't believe the government allowed this knowing it would all fall over at some point.

[billyelliot1975]

Why are people asking questions on the committee who don't even know what market making is? It is like me trying to tell someone the best way to design a rocket when I don't know anything about it. The SEC settled as their case was weak and they had insufficent evidence to ever prove anything. It was just a stick to get Obama's legislation through...once voted in, they then settled the case the same day...what a conincidence!

[ytgv3fc7]

@cardinals07 Fail. 1990's the "prospering" was stealing for many, many were ripped off and are poor today because of it. 1940's: fail again, wages went up much faster than prices and this makes all the difference. Now that wages can not, will not, rise to match prices, as over-all inflation happens, we're looking at a horrifying global nightmare. Deflation is prosperity for the masses. It is the one sign of increased production & quality.

[ytgv3fc7]

@cardinals07 the entire time we've had computers, they have been in market-deflation, and this has been prosperous for the entire planet. Without this, the world economy could not even exist at all as it has. No internet, no 3-D video games, no skype, no youtube. None. This prolonged 30+year deflation is critically good for humanity.

[ytgv3fc7]

@cardinals07 to clarify: there's no reason to assume a deflation "now" will "keep happening" so if I want a good price & wait for a better one, that day will never come and my chance is over. This is why people buy on sales & save money and do it as soon as possible. If a car is going to keep going up in price I'm going to buy no car at all. This is why inflation is unhealthy: it promotes non-spending until deflation returns, if ever.

[ytgv3fc7]

@cardinals07 Your way of thinking is not like many others. If a computer cost goes down I will buy another. I will either replace the one I have or combine them together. If a car price goes down I will consider the cheaper cost of having it in good condition than the maintenance on the older car, perhaps make the buy. Deflation promotes spending, inflation promotes non-spending. The more inflation, the less I spend.

[ytgv3fc7]

@cardinals07 from what I've been seeing in Max Keiser videos, Goldman definitely helped Greece with fraud, knowing the final outcome, as Goldman always does. This is causing a debt problem by magnifying a previous one. Goldman definitely caused the American crisis and only a fool would conclude otherwise. Without their action, only a simmering rot would appear and perhaps meander around the ill nation rather than transform into pure cancer.

[ytgv3fc7]

@cardinals07 gold will rise 20% from 1200-ish to 1450-ish in less than 6 months.

[ytgv3fc7]

@cardinals07 hyper inflation must happen because of the federal reserve. Its purpose is to cause inflation and its actions now must cause hyperinflation. The funds rate will NOT GO UP because Bernanke is SHIT SCARED he'll be fired right off the bat immediately, or even shot, if he does it. It's already got really bad before and Bernanke is no Volcker and America 2010 is NOT America 1980. Less factories, poorer education, higher unemployment, about to keel over.

Hyperinflation MUST HAPPEN.