Drudge headline – Goldman would be enriched by Dodd bill
Increased regulation hampers primarily the smaller financial institutions thereby strengthening the relative position of the biggest firms like Goldman Sachs.
Goldman Sachs gave just a tad less than a million dollars to Obama’s campaign fund.
The Democratic Party and its leader Obama are presuming Goldman guilty in the court of populist rhetoric and using the alleged offenses to justify new regulation.
The argument follows the line that it was fraudulent activity by Goldman Sachs executives that nearly brought financial ruin upon the United States and much of the rest of the world. Despite the severity of the alleged offense no criminal charges have been filed. Should they choose to do so, Goldman could seek settlement for a fine paid by the firm. Under the provisions of the Section 7 Fraud Statutes the fine would conclude the matter and effectively bar any follow-on lawsuits from injured parties.
Goldman’s customers are sellers for whom they structure and sell securities and investors who buy these same securities. Goldman’s statement that they “always put the customer first” is a snickerworthy pledge. Which customer? They represent both sides of the same transaction.
What is going on here is mostly politics. The inference that Goldman brought down the economy is absurd. That is not to declare Goldman innocent of wrongdoing. Nonetheless, it looks like Goldman is participating as a reluctant but willing scapegoat in order that regulation enacted might be favorable to them.
Week ending April 23, 2010
Obama misses Polish President’s funeral
Heads of state from the smaller European countries found ways around their ashes to attend the funeral, Sarkozy and Merkel stayed home. Biden and Clinton express their sympathies to the Polish Embassy. Obama played golf.
New York Times reports Muslim outreach
Obama is becoming less cautious about speaking out for Muslims
GOP goes on fishing expedition
Asks for investigation into White House connection to Goldman Sachs case.
Biden lays it on.
Blames greedy banks for financial collapse
Grounds trembling under SEC case against Goldman Sachs
SEC charge is Goldman defrauded ACA by failing to disclose Paulson’s intent to short the portfolio ACA was assembling. Paulson aide says he informed ACA of Paulson’s intent.
Obama and Biden both go to the scene of the crime to pump up some resentment
In a speech at Cooper Union in NYC Obama lays it on the greedy banks for causing the country’s economic problem. Biden carries the same water elsewhere in the city.
Obama slams Arizona immigration law
Claims law violates civil rights
About Washington Week in Review
It is our intent to publish this feature on Saturday in the future. The goal is to provide a handy recap of interesting events that occurred during the week, including some that may not have been given much attention in the major media.
It doesn’t matter.
Of course it matters civilly; if wrongs were committed the consequences should be applied. But guilt or innocence doesn’t matter politically because the allegation alone serves the purpose.
In Rules for Radicals Alinsky’s 13th Tactical Rule is “Pick the target, freeze it, personalize it, and polarize it.” Goldman has been picked. (If they are guilty, a cynic might say they volunteered.) “Freeze it” means stay on it. Obama is coming to New York Thursday to stay on it. To “personalize it” means getting the community to feel personally harmed by it. You lost your job because of a recession by which Goldman profited. To “polarize it” is to use the target to fan the flames, to agitate. Get the people angry. Get them behind legislation to reform the financial markets. The government needs more power over the financial industry, to keep the cats from getting fat while you are looking for work.
Mayor Bloomberg learned of the intended visit only upon seeing it in the news. He was not amused. But the goals of polarization and agitation were advanced in the process. A good community organizer makes it plain that he is not subservient to the man, not part of the establishment. There is no need to coordinate with the mayor.
Random Thots hopes to publish an analysis of Goldman’s guilt or innocence when more details become available. In the meantime we recommend today’s article in the New York Times. It appears to be a fair and well written analysis.