Tuesday, April 27, 2010

Could I have a show of hands AGAINST finance reform?

This from the Huffington Post:
Goldman Sachs put its own interests ahead of its clients in trying to profit off the souring housing market of 2007, documents released Monday show.

The firm, which had profited handsomely off packaging and selling securitized subprime home mortgages to investors during the housing boom, switched directions in early 2007, furiously shedding its home mortgage-linked risk and buying as much insurance as it could, effectively shorting the market throughout the year -- a move that netted the firm "billions and billions" at the expense of its clients, according to the documents released by the Senate Permanent Subcommittee on Investigations.

"Goldman Sachs made billions of dollars from betting against the housing market, and it placed those bets in some cases at the same time it was selling mortgage-related securities to its clients," said the committee's chairman, Carl Levin (D-Mich.). "They have a lot to answer for."

Goldman says it always puts its clients' interest first. It's a position the firm has stuck by as Levin's investigation has produced emails and internal documents apparently showing otherwise.


Despite the fact that 67% of the American public favors action to reform the financial markets, Republicans in the Senate voted UNANIMOUSLY yesterday to prevent such a bill even being discussed on the floor of the Senate. Ironically, these same senators, who were VERY loud in proclaiming (about healthcare reform) how "we should not go against the will of the American People", have now voted against a 67% majority...is there any more doubt that the GOP is aligned with corporate interests, AGAINST the American Public?

It's worth pointing out that, prior to FDR and the New Deal, we had unregulated financial markets, and a "panic" every 20-30 years: 1797; 1819;1837(followed by a 5-year depression); 1857 (full effect didn't let up until the Civil War) 1873 (followed by a 6 -year depression);1893 (3-year depression); 1907, and 1929(perhaps you've heard of that one...).
Then came Franklin Roosevelt, and common-sense market reforms. There was not a major financial crisis in the USA from 1934 until the 1980's, when, under Reagan, moves were made to deregulate the financial industry. Then in the mid-late '80s, we had the S&L crisis/scandal, and in 2008 - well, you know.

Hmmm...crisis every 20-30 years (deregulated), or steady growth with no panic (regulated)? Seems the GOP likes the former...

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