Referring to Kavita's Comments on Goldman

Good Question's Kavita...

1 - We are not assuming that Goldman knew the CDO would Fail. It is a FACT that Goldman was selling a Shit Investment (in the words of Investigative committee Chairman, Senator Carl Levin). He used the word Shit Investment/product 11 times yesterday when the investigative committee first sat down to question Goldman Sachs.

2 - Everybody knew the housing bubble was going to burst. A half decent student of economics could have told you that.

3 - Goldman Lied - they selected 2 billion dollars worth of product from their inventory. Investments that were on the verge of collapsing and stuck em in the Abacus deal.

4 - Yes ABN Amro and IKB bank are idiots in regards to this deal. They were stupid enough to buy into the deal. Whereas ACA and a few other investment firms rejected it, the product was too risky and they could identify junk. These banks (IKB and ABN)got desperate and greedy bought into a risky portfolio. See there is no room for being a fool in investment banking. You will get taken advantage of. Goldman did exactly that., and not just to these banks but other institutions like Bayer Sterns...

5 - Even Goldman Sachs Sales people were well aware that the Abacus deal, Timber wolf deal and the Hudson Mezzanine to name a few were essentially going to fail. Goldman made Billions on each of these deals and their clients lost money.

6 - Isn't there a moral problem / conflict of interest when you sell a product to your client assuring them its a high yield security i.e. manipulate them into a long term investment and then you buy insurance against the success of the same security. Aka your company take the short run side of the investment.
So because they own the CDS's wont it be in the best interest of Goldman that the security fail?

7 - No individual can partake in the derivatives market. It is an internal market for banks only. Mr. Gary Gensler is pushing for Banks to trade derivatives on the open market so there there is more transparency. Good idea, lets hope it happens.

8 - Fact being that Civil Charges are filed and Not Criminal so we can't say that Goldman was scamming clients, its more politically correct to say that they withheld information. Big difference ya. haha...