Goldman Sachs is getting pilloried for hedging their bets, and may be charged with fraud by the kangaroos and Inquisitors who run the SEC. The first sensible thing I’ve heard GS do in years, and this is the one that may get them in real trouble with the mob.
Now, don’t get me wrong. I no more want to defend GS than I do the makers of Velveeta. But this wasn’t fraud. This is government grandstanding. It’s timed to help Obama ram thr0ugh his half-assed package of “financial reforms” that the canny technologists at places like GS will figure out how to avoid in 5 minutes.
The timing proves the SEC is a pathetic political animal and that government regulation is an oxymoron. The SEC didn’t do shit to prevent the recent unpleasantness. The government didn’t do shit to reign in Fannie and Freddie, the financial Krueger family. But we’re supposed to fall asleep again and trust them to protect our dreams.
We are expected, by these rapists and fuckups, to place our faith in their government getting it right this time, not looking the other way, not being bought by the people they pretend to regulate.
They’re, as usual, solving last year’s problems, plugging dyke-holes in places already under water.
The only solution to this is to shrink government to where they can’t protect their friends who are “too big to fail.” We can never fall asleep and trust them again.
It’s not about restoring faith in the financial system but about hurting ordinary people enough that they become permanent financial infidels and skeptics. We need to lose faith. That’s real power to the people. That’s real regulation. When ordinary people no longer accept promises of financial safety at face value, when FDIC insured isn’t taken as a guarantee of anything–then you’ve got real reform. We, not government agencies, are the only good regulators of the financial system. It’s up to us to become economically literate. It’s our fault for delegating our fiscal lives to horrible people in government and on Wall Street.