May 1, 2010
More Goldman (Because the Oil Leak Is Just Too Depressing)
I have enjoyed reading Josh's recent posts (here and here) on the Goldman case. If I'm reading him correctly, I think his argument against finding fraud boils down to: (1) ACA did their own portfolio assessment, so "the buck stops with ACA"; and (2) If we find the omission of Paulson's role material, we'll be on a slippery slope to holding the influence of horoscopes material. Putting aside my lingering questions about how many of the facts being discussed may actually go to reliance rather than materiality, I respectfully disagree with both points.
It seems to me our difference of opinion as to the sufficiency of ACA's own portfolio assessment may boil down to a difference of opinion as to the efficacy of valuations generally. As I've stated previously, I would expect any reasonable valuation expert to bring their post-due diligence enthusiasm for an investment to a screeching halt (at least momentarily) if it were disclosed to them that the investment had been created under the influence of another investor planning to short the investment. As for the slippery slope, I'll just say I have faith in our ability to restrain ourselves from rushing on to horoscopes if we find the omission here material.
But in some sense, who cares what Josh and I think? As I've suggested elsewhere, in a perfect world we would be collecting hard data from valuation experts. To the extent our opinions do matter, they suggest dismissal on the basis of materiality should not be forthcoming, given that such a motion should be granted only where no reasonable investor would find the fact material.
PS--For a good review of BP's history of (at least in the words of one former engineer) putting cost-cutting and profits ahead of safety and the environment, go here. As for me, as much as it pains me to forgo my 5% BP rebate card, and as difficult as it may be to avoid the ubiquitous and often cheaper BP stations, I do plan on going elsewhere for gas. I completely understand if readers will view this as an utterly futile and perhaps even misguided act.
SEC vs. Goldman- 21st Century age of Enlightenment or Tyranny?
Will bankers and big oil lead humanity into an enlightened 21st. Century of green energy and humanitarianism or will this be the century of World Totalitarianism of the New World Order? We know that “morality” is a “no” word for bankers, big oil and investors alike; yet they are leading us into the New World Order with their heartless and coldblooded culture of greed by the few. World conquest by tyranny is not new and it certainly is not orderly; it is chaos. Hitler already tried World domination by tyranny in the last century. The nations of Greece, Latvia, and Iceland have already fallen into “order” and Spain, France, Germany, Portugal, Ireland, Italy, United Kingdom and the United States of America are scheduled to fall into “order”. The American people do not want to lose our Democracy, Independence and Freedom; yet this World totalitarian agenda emanates from the United States of America and is lead by the Bush/Obama Administration in our name. The World is looking at the American people as their last resort for salvation and praying that the American people will stand up to this evil force and do the right thing. By saving ourselves, we will also save them. We are the only ones who can change the direction of our own country with what freedoms we have left.
The SEC vs. Goldman is a test of strength between the American people and the World bankers, indeed, the New World Order. If the American people do not bring the bankers to Justice in our court system; the bankers will be free to dominate the World.
The injunctions will lead to the White House and the Bush/Obama Administration which is dominated by Trilateral World bankers. Zbigniew Brzezinski is the designer and architect of the bankers Trilateral Commission and the New World Order; he is also Obama’s top advisor. Geithner, Volker, Greenspan, Summers, Corrigan and Peterson are all of the same banking family of World bankers (America is their host) Goldman Sachs, Morgan Stanley, Bank of America, JPMorgan Chase, Wells Fargo Federal Reserve, IMF, World Bank etc; their tentacles reach into every economy in the World. The World total economic output in 2009 was 58.07 Trillion and the total World bond market was 82.2 Trillion. The largest market in the World is the Derivatives market at 600 Trillion and is used primarily by the bankers as a weapon of mass destruction of economies to bring them in line with the New World Order. Their modus operande is the same for American citizens as it is for Nations.
The banker and oil dominated Trilateral Bush/Obama Administration has purposely driven the United States of America into debt under their expert banking management by the systematic pillaging of our Treasury. Our National debt interest is at 15% about the same as the United Kingdom according to Moody’s bond rating March 15. “the U.S. will be paying about 15 percent of revenue in interest payments, more than the 14 percent limit that would lead to a downgrade to AA, Moody’s said.”
In the financial world, loosing your AAA bond rating changes the banking agreement substantially (as every home owner knows) that is when the fine print kicks in and the spiral to the bottom begins. Look at Greece, Latvia, Iceland and now the UK. Germany, France and Spain AAA credit ratings are in danger as reported in the U.K Telegraph on March 15 (referring to Moody’s) “The US rating agency said the US, the UK, Germany, France, and Spain are walking a tightrope-“
To control and accelerate that rush to the bottom of Nations, major banks are frontloading the odds of default of a Nation down on Wall Street in a computer so they can control and manipulate trades with high-frequency trading in derivatives. High-frequency trading is how Goldman Sacks (U.S.A) makes at least 200 million a day in derivatives on Wall Street and accounts for most of the 3.3 billion made in profit last quarter. This one example of Goldman Sachs (U.S.A) operations is but the tip of the arrow head and the shaft is sure to follow. By flying the United States of America economy and government into the ground the New World Order of Trilateral Traitor bankers become winners. Now, who is the terrorist?
I hope Americans have empathy for the people of Greece and all the other people of Nations who face “Austerity measures” because their destiny will soon be our own fate. The bankers are brutal; the National financial burden is on the people with forced tax followed with the gutting of social services and privatization of National infrastructure and National Natural Resource for pennies on the dollar.
If you can empathize with these people I suggest that you take action and button-hole your representatives in Congress today and tell them to make a stand for the American People against this takeover of our government by Trilateral bankers and the New World Order. Demand that they insist that ALL of the subversive Trilateral members in government to STAND DOWN. Insist that Treason charges be served on all who conspired to overthrow our American Independence, Democracy and Freedom (there are only about 1,500 Traitors). Insist that Free Press, the watch-dog of Democracy, be restored by breaking up the monopolies in the Media.
Main Street Capitalism, Competitive Market, and Free Enterprise are America’s tried and true standard and our economy and government can recover from this treachery if we act now by getting back to our roots of industry, manufacturing and technology instead of being smothered by the Multinational Corporate Empire, by proxy, by our government. Our economy needs Fair Trade not (Free (sic) Trade and Free Enterprise and Competitive Market not controlled markets by the multinational corporate monopolies.
Posted by: Lawrence Baker | May 2, 2010 4:47:07 PM
No, your retreat from the perks offered by BP is far from misguided. Anytime you vote with your feet, wallet, and heart you are showing yourself to be a better person than those who turn their backs on injustice to save a few cents. Good for you!
Posted by: Dan S. | May 2, 2010 5:04:18 PM