Wednesday, April 28, 2010

Current Events Thread

I am personally sickened by the way that issues get drawn into partisan politics and politicians side with one side or the other with what seems no regard to right and wrong. The Goldman Sachs scandal is a perfect case in point, and here's why. The Democrats are trying to make an example of Goldman because they want the public sentiment to pass the so called financial reform bill. There are actually about three facets to this whole issue, which I will cover in depth.
FIRST, if an institution packages financial instruments, and sells them to investors there is an implied understanding that the seller of these investments believes there is value to them, but to sell these investments, the sell them short, indeed the person who bundled them was a known short seller, is unethical at BEST and criminally fraudulent at worst. THIS is what the public in general is being let in on, and what opinion in general is being based on. The Republicans are almost falling in line to protect Goldman, just because the Democrats are trying to hammer them. This in SPITE of Goldman donating over three times to the Obama campaign what they donated to the McCain campaign.
SECOND, Wonder WHY Obamas Democrats are chasing so hard after his benefactors, instead of someone else? Contrary to popular belief, the international banking industry is NOT run by the's run by the Swiss. There are bankers who get together and set international banking standards in the city of Basil, Switzerland. First the was Basil I, which set liquidity standards, and 'best practices'. These seemed not to be stringent enough, so Basil II was enacted that strengthened liquidity requirements. There is currently or recently a new meeting setting the standards in the aftermath of the latest banking crisis. Remember the fuss that was raised last year when the federal government said that many banks in the U.S. needed to raise more cash? Same issue, but the Swiss bankers are liable to require even higher standards meaning that the large banks like Goldman Sachs would have to raise and retain enormous cash reserves to ensure liquidity. One means of dodging this would be for the federal government to step in and say "we're already policing our financial institutions, they don't NEED to comply with these tighter standards". So Goldman Sachs takes a hit in some fines, and PR, and gets some tighter regulation, and avoids having to really tighten up (not that I'm wild about the idea of foreigners dictating to our banks).
THIRD, (and this is the most Machiavellian and 'conspiracy theorist' aspect of them all, but look the facts up for yourself) There is a market called the Chicago Climate Exchange. It was started with funding funneled for the purpose from the Joyce Foundation. The founder claims that there is easily a potential for a $10 TRILLION dollar capitalization (to put this in perspective the NYSE, the Big Board, has $15 trillion capitalization) This was invested in heavily by a British based corporation that is the 5th largest stockholder in the CCX (Chicago Climate Exchange). This looked like a too big plum to pass up to a large U.S. banking firm that had some common directors on the board of the British firm, and that Bank bought up a 5% stake in the CCX themselves. Now, comes the ribbon to tie it all up, and you can't make this stuff up. The British company? Run by Al Gore. The other directors? Goldman Sachs executives. The bank that bought such a stake in the CCX? Goldman Sachs. The Director of the Joyce Foundation who ensured the start up capital was funneled to the CCX? Barack Hussein Obama. The whole thing is a vehicle to line the pockets of the Democrat elite and ensure their supply of enormous campaign contributions for a long time to come.

Wonder why all these things are coming to a head at the same time? (Immigration Reform, Financial Reform, Possible Statehood for Puerto Rico?) The progressives are throwing as much of their agenda against the wall as possible to see what, if anything, will stick.

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