So Goldman created an investment it knew would fail and sold it to investors? Sounds like “The Producers.”
Here’s what Goldman can do as a goodwill gesture:
What if everyone currently underwater in a mortgage were given a short position of 1,000 shares of Goldman stock, right now?
That could help a lot of people–especially if Goldman takes a nice drop down. Thank you, GS.
Or they could give 1,000 shares of GS stock to screwed over mortgage holders once the stock bottomed. That way, we can all rise from the dead at the same time.
Goldman says it’s innocent. But that’s standard comeback fare in the face of a fraud charge. Here’s my bet: As Enron was to California’s energy crisis, Goldman was to California’s subprime mess.
Goldman’s only defense is based on greed: Hey if the housing market didn’t collapse we’d all be winners!
Yeah, sure. But then again it was the complicated credit swaps it concocted that created the circumstances for the housing bubble to burst.