Saturday, April 24, 2010

Goldman Sachs: let's get past the ideology and call it evil.

Goldman Sachs Messages Show It Thrived as Economy Fell -

Here is the problem for free-marketers, especially Libertarians. What Goldman Sachs did is far, far from Adam Smith's vision of butchers, bakers and candlestick makers wisely and competitively marketing real goods and services to make a profit. The Wall Street shenanigans here are about moving an un-product, non-service load of junk paper around to service pure greed.

When I lived in L.A., Libertarian radio host Larry Elder routinely defended this kind of thing under caveat emptor - "Let the buyer beware." He didn't defend it as right or moral, but he basically argued that we don't need laws, we just need to better educate ourselves about what we buy. Our fault if its junk.

The problem is that the size and scope of the Goldman Sachs dealings send ripples through the economy. People who never even considered buying stocks find their finances worsened. There's an example I blogged just a few posts ago, in which the employees of Lutheran publishing company are having their pensions nuked by the Wall Street havoc.

This kind of evil leads to the call for regulation. I'm not big on big government. It tends to become Caesar, claiming divine right to itself and expecting people to burn incense to it on threat of severe penalty.

But Goldman Sachs certainly tempts one to flip a very visible finger to the "invisible hand" of the market.

1 comment:

Why This Blog? said...

I am presently in litigation with Fremont Reorganizing, Goldman Sachs dba Litton Loan Servicing, et al., (2 different cases) for about 2 years now. The main issue with the complaint is a fraudulent loan originated by Fremont in June 2006. This in turn produced an array of other
issues: unsigned deed of trust, over billing issues, lost payments, excessive balloon payment, back dated assignments, illegal non-judicial foreclosure documentation, missing documentation, illegally reporting to my credit, falsifying declarations, 6 week TRO's, court procedures not followed, judges wait until the courtroom is cleared to rule against a TRO (both times); retired (78 year old) judge ruled against a seated judges TRO where the retired judge took 30 minutes to read a 300 page brief. The whole time they have been ignoring my request and failing to give me the required documentation so that I can rescind the loan. Goldman Sachs dba Litton Loan Servicing has been aggressively trying to foreclose on my property. I believe to cash out for insurance reasons. (It's over a million dollar loan) I have invested over $400,000 into this property for the past 5 years and if I had known about this mortgage meltdown game played by Wall Street I would have never proceeded with this Real Estate transaction. The Media and the Government has not once addressed or helped the borrower, namely me, who also has been damaged by these defaulted CDO's.

A Time line of what's going on with Goldman Sachs to show how they are scheming to pursue foreclosures for the insurance by acquiring distressed, shelled fraudulent companies which will eventually or haven't already gone BK...

 Oct 26, 2005 Litton Loan Servicing Class Action - mishandling loans, servicing over 400,000 borrowers - case settled Feb 17, 2009 for $537 (limited due to class status)
 Feb 27, 2007 FDIC Cease and Desist - Fremont Reorganizing for illegal loan practices, et al., (largest predatory lenders who heavily solicited brokers for their schemes)
 Oct 16, 2007 Massachusetts Lawsuit vs Fremont and Goldman Sachs - Predatory Lending Practices - settled May 11, 2009 for $60 mil
 Dec 11, 2007 - Goldman Sachs Acquires Litton Loan Servicing
 June 2, 2008 Litton (Goldman Sachs) Acquires Fremont Reorganizing Servicing Rights
 June 19, 2008 Fremont Reorganizing files BK
 Apr 16, 2010 - SEC vs Goldman Sachs - Securities Fraud

Here is the link to my blog if you want to download court documents pertaining to my case.

Note: My wife is pursuing individuals who are interested in joining her in a class action lawsuit with regards to violation of her community property rights in a wrongful foreclosure. If you are in a community property state and a spouse is not on title you may have grounds for legal action.