News the mainstream media "forgets" to talk about

"What difference does it make to the dead, the orphans, and the homeless, whether the mad destruction is wrought under the name of totalitarianism or the holy name of liberty and democracy?" Gandhi

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Written By FaithRMichaels I'm tired of hype, tired of same ole same ole lesser of two evils choice,  wayyyy tired of Clinton and wayyyy...

Monday, November 09, 2009

Goldman Sachs role in America's Housing crash

Now comes the news that in 2006 and 2007 Goldman Sach sold investments that they knew were high risk junk as Triple A securities. If this report is valid then Goldman Sach's has some explaining to do.

Below is an article excerpt that was written by Greg Gordon.

"Goldman's sales and its clandestine wagers, completed at the brink of the housing market meltdown, enabled one of the nation's premier investment banks to pass most of its potential losses to others before a flood of mortgage loan defaults staggered the U.S. and global economies.

Only later did investors discover that what Goldman promoted as triple-A investments were closer to junk.

Now, pension funds, insurance companies, labor unions and foreign financial institutions that bought those dicey mortgage securities are facing large losses, and a five-month McClatchy Newspapers investigation has found that Goldman's failure to disclose that it made secret, exotic bets on an imminent housing crash may have violated securities laws.

"The Securities and Exchange Commission should be very interested in any financial company that secretly decides a financial product is a loser and then goes out and actively markets that product or very similar products to unsuspecting customers without disclosing its true opinion," said Laurence Kotlikoff, a Boston University economics professor who's proposed a massive overhaul of the nation's big banks. "This is fraud and should be prosecuted."
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