Sachs of Shit

If corporations are people now, then why isn't Goldman Sachs already in jail?

We’ve known for some time that Goldman Sachs and other firms marketed mortgage-backed securities even as they sought to make profits by betting that such securities would plunge in value. This practice, however, while arguably reprehensible, wasn’t illegal. But now the S.E.C. is charging that Goldman created and marketed securities that were deliberately designed to fail, so that an important client could make money off that failure. That’s what I would call looting.

And Goldman isn’t the only financial firm accused of doing this. According to the Pulitzer-winning investigative journalism Web site ProPublica, several banks helped market designed-to-fail investments on behalf of the hedge fund Magnetar, which was betting on that failure.

So what role did fraud play in the financial crisis? Neither predatory lending nor the selling of mortgages on false pretenses caused the crisis. But they surely made it worse, both by helping to inflate the housing bubble and by creating a pool of assets guaranteed to turn into toxic waste once the bubble burst.

As for the alleged creation of investments designed to fail, these may have magnified losses at the banks that were on the losing side of these deals, deepening the banking crisis that turned the burst housing bubble into an economy-wide catastrophe.

The obvious question is whether financial reform of the kind now being contemplated would have prevented some or all of the fraud that now seems to have flourished over the past decade. And the answer is yes.

And yet the Republican Senate contingent once again lines up in lockstep opposition to reforms that would prevent the banksters from ruining us all over again.

What do you suppose it would take for a Republican to vote against Wall Street?  That's probably as far-fetched a proposition as a Catholic pedophile priest converting to Southern Baptist.

Update: Tom Toles nails it.

If 37% of TeaBaggers have a college or post-graduate degree ...

... how come so many of them spell worse than a fifth-grader?

-- If 22% of TeaBaggers are over the age of 65 -- thus receiving Medicare health benefits and Social Security income from the federal government -- why are they opposed to "government-run healthcare"?

-- If TeaBaggers are paying lower taxes under Obama -- and indeed, 52% say their own taxes are 'fair' -- why do 82% of them think their taxes are going up?

-- Finally, how can it be that 40% of them support their own Congressional representative when only 1% of them approve of the job Congress is doing?

These are among the many imponderables associated with this overexposed, over-hyped, too noisy, too obnoxious faction of the electorate.

This monumental ignorance cannot all be attributable to the FOX News intelligence quotient (even though 47% cite that as their sole or primary source of information -- compared with 19% of the general public).

It's equally imponderable that all of this screaming and whining like babies that's been going for nearly a year now -- since last summer's townhalls on healthcare reform -- continues to attract so much media attention.

Update: RepublicanDirtyTricks.com, via jobsanger, with another good question.