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Goldman Cracks
Given the tremendous water pressure involved, even a small crack in a huge dam can lead to catastrophic failure.
Similarly, even a small breach in a seemingly invincible army's defenses can lead to defeat.
The SEC's fraud action against Goldman Sachs is really small potatoes. It alleges only civil - not criminal - fraud.
And it is against only one small player, not against his bosses or top management.
(And Goldman has done a lot worse.)
But Goldman has suffered a crack in its veneer of respectability.
More importantly, the SEC action may represent a crack in the company's armor.
Before
the SEC announced the charges, Goldman seemed unstoppable. It seemed
like even countless tons of water pressure or scores of invading armies
could not touch Goldman.
Now, there is a crack ...
Even if the timing of the SEC's announcement was wholly political (some commentators have called it bread and circuses or kabuki theater),
and even if (as some writers have alleged) Goldman CEO Lloyd Blankfein
himself approved the action as a way to diffuse pressure for bigger,
criminal prosecutions against bigger players, tons of public pressure
and hordes of lawyers are probably on their way.
Or perhaps
Goldman is like the warlord hated - but feared - by all. If there is
ever a crack in the warlord's veneer of invincibility, the locals might
realize that he is only human after all ... and decide they can -
together as a group - take him on.
of Goldman's respectability.
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Amen, lets hope they go down in flames I have no doubt all the allegations are true.
Oh man, the Power Elite' gonna have to arrange for another bag man. Bad days in Paradise, Dude. Done went an screwed their own pooch by mistake.
Is it better to be loved or feared? Machiavelli wrote about this in The Prince. If one has to choose, it is better to be feared. Ideally though, it is always better to be both loved and feared.
Goldman has done its best to not be loved, and now it is apparently not feared either. That has just gotta suck for them.
Of course, the classic reference is Sun Tzu, where it is better to be feared than hated.
If feared, they will avoid and acquiesce to you. If hated, they will destroy themselves to try to hurt you.
Goldman Sachs is hated. That will be their undoing.
You are correct, spot on. They are hated because they are connected to almost everything on wallstreet and many who do business on that street tend to bow down to them because they know they can be blackballed or destroyed by this company. CNBC came out to defend Goldman Sachs like no tomorrow, and everyone knows it. This chink in the armor of Goldman Sachs is what many lawyers and countries and states need to go after them. This showed how at the Beheast of Paulson and company they allowed him to build financial instruments and then Goldman sold them to institutions knowing that the builder of the instrument (Paulson and Goldman) where short it. It goes against all logic that a person who will benefit from being short this fund wouldn't stack the deck in order to make it more likely it would happen.
Yea Goldman disclosed that it could be shorted, but what they didn't disclose was that the bonds they where selling where built buy the guy or guys who where shorting it. If they would have told them that no financial institution would have bought these things, and they knew it. Now all Goldman deals are in doubt especially any that people lost monely on. I bet that when they start to dig a little deeper they will find out that on many of the losing deals, Goldman and others may have been short on them.
Oh, by the way the French guy who is being named as the one who did this (yea, this guy had the authorization to build up a massive multibillion dollar instrument with a client to sell with Goldman's name on it and he did it without authorization or a nod, I don't buy it) hasn't been fired but is on leave. I think they don't want this guy to start squawking.
Who does not also hate the one he fears? Name one.
My father when I was young.
fish LOL
Let's hope their greed and unethical behavior stay on page one for a while.As well as their obvious role in the meltdown.
What villainous scum.