Wednesday :: Jul 15, 2009

Open Thread

by Mary

Well, it seems like Matt Taibbi's piece about Goldman Sachs is stirring up a *lot* of dust. (BTW: Full article is finally online here.)

Eliot Spitzer thought Taibbi's piece was quite good and raised the right questions about whether Goldman's good fortune means good news for the regular economy. Spitzer notes that Goldman Sachs and all banks are benefiting hidden subsidies from the American taxpayers, but that Goldman Sachs good fortune doesn't appear to be doing anything for creating real jobs for Americans. When Goldman Sachs pays out billions in bonuses, do you think Americans will cheer? That simple question ought be keeping Obama's financial experts up at nights.

One other Taibbi tidbit: when Goldman Sach's traitor stole the crown jewels (the algorithms used by GS for program trading), Goldman Sachs issued this warning:

Assistant U.S. Attorney Joseph Facciponti stood up in court and let loose a whopper. “The bank has raised the possibility that there is a danger that somebody who knew how to use this program could use it to manipulate markets in unfair ways,” he said.

As Taibbi says, having Goldman Sachs acknowledge that this theft could lead to market manipulation, one isn't a fool to wonder how Goldman Sachs was using this program before it was stolen. Especially when they have have the disclaimer: "You acknowledge that we may monitor your use of the Services for our own purposes (and not for your benefit). " (emphasis mine)

Mary :: 12:00 AM :: Comments (5) :: Digg It!