Like A Swiss Watch, The Witchhunts Are Here: Blankfein, Fuld, Bernanke, Geithner, And Schapiro All To Testify Before Congress As Distraction Game Continues

Tyler Durden's picture

In keeping with the tradition of bread and circuses, Obama has managed to channel the public anger at precisely the right time to deflect from the fact that today the US debt increased by $51 billion as seen below. This has many wondering if the whole SEC action against Goldman (which some have already pointed out is a rather weak case) is nothing but smoke and mirrors to distract the broader public for a few weeks until anger once again dies down while in the meantime the administration pushes this country deeper and deeper into insolvency. If it means sacrificing the SEC which, whose downfall is a given anywa, and will take a few years of legal wrangling and millions in legal fees charged to Goldman's shareholders, so be it. For those who care where the real news is, we direct your attention to today's Daily Treasury Statement, which disclosed that total US debt just jumped to $12.817 trillion, $51 billion higher on the day, $101 billion higher for the month of April, and $965 billion higher for the fiscal year beginning October 1, 2009 (so six months ago).

And so, in the absence of good prime-time TV in the next few weeks, here is what is on tap. From Reuters:

Federal Reserve Chairman Ben Bernanke joins Treasury Secretary Timothy Geithner next Tuesday to testify before Congress on the 2008 collapse of Lehman Brothers amid the peak of the financial crisis.

The two, along with Securities and Exchange Commission Chairman Mary Schapiro and former Lehman Chairman Richard Fuld, will be before the U.S. House of Representatives Financial Services Committee, starting at 11 a.m. (1500 GMT)

And just so today's events are put into full cause and effect perspective, here is the real highlight from the upcoming witchhunt circuit:

The pressure on Goldman Sachs will intensify this month when Lloyd Blankfein, the US bank’s chief executive, faces tough questioning from a high-powered Senate panel as part of a probe of Wall Street groups.

People close to the situation said Mr Blankfein would testify before the Senate’s permanent subcommittee on investigations on April 27 after months of questioning of Goldman executives by the panel’s staff, including sworn depositions about the bank’s activities leading up to the global financial meltdown.

If anybody thinks that Goldman will be impacted by anything more than a $5 million settlement fee as a result of today's festivities, they are sorely mistaken. After all, don't forget just who the 29 year old COO of the SEC is. Also, the SEC needs jobs on Wall Street too - after all, all that tranny porn bandwidth costs money, especially in the private sector.