Experience should teach us wisdom. Most of the difficulties our
Government now encounters and most of the dangers which impend over our
Union have sprung from an abandonment of the legitimate objects of
Government by our national legislation, and the adoption of such
principles as are embodied in this act. Many of our rich men have not been
content with equal protection and equal benefits, but have besought us to
make them richer by act of Congress. By attempting to gratify their
desires we have in the results of our legislation arrayed section against
section, interest against interest, and man against man, in a fearful
commotion which threatens to shake the foundations of our Union. It is
time to pause in our career to review our principles, and if possible
revive that devoted patriotism and spirit of compromise which
distinguished the sages of the Revolution and the fathers of our Union. If
we can not at once, in justice to interests vested under improvident
legislation, make our Government what it ought to be, we can at least take
a stand against all new grants of monopolies and exclusive privileges,
against any prostitution of our Government to the advancement of the few
at the expense of the many, and in favor of compromise and gradual reform
in our code of laws and system of political economy." Andrew Jackson
"Now listen, you rich people, weep and wail because of the misery that is coming upon you. 2 Your wealth has rotted, and moths have eaten your clothes. 3 Your gold and silver are corroded. Their corrosion will testify against you and eat your flesh like fire. You have hoarded wealth in the last days." - James 5:1-3

Tuesday, February 16, 2010

Goldman Is About To Be Blacklisted And Possibly Banned In Europe

http://www.businessinsider.com/simon-johnson-goldman-is-about-to-be-blacklisted-and-possibly-banned-in-europe-2010-2

Simon Johnson: Goldman Is About To Be Blacklisted And Possibly Banned In Europe
Joe Weisenthal
Business Insider
Mon, 15 Feb 2010 07:35 EST

MIT professor Simon Johnson raises some provocative scenarios in regards to Goldman's participation in Greece's scheme to obfuscate its debt levels.

In particular, he expects a full audit of the company, and perhaps some kind of ban:

If the Federal Reserve were an effective supervisor, it would have the political will sufficient to determine that Goldman Sachs
has not been acting in accordance with its banking license. But any meaningful action from this direction seems unlikely.

Instead, Goldman will probably be blacklisted from working with eurozone governments for the foreseeable future; as was the case with Salomon Brothers 20 years ago, Goldman may be on its way to be banned from some government securities markets altogether. If it is to be allowed back into this arena, it will have to address the inherent conflicts of interest between advising a government on how to put (deceptive levels of) lipstick on a pig and cajoling investors into buying livestock at inflated prices.

And the US government, at the highest levels, has to ask a fundamental question: For how long does it wish to be intimately associated with Goldman Sachs and this kind of destabilizing action? What is the priority here - a sustainable recovery and a viable financial system, or one particular set of investment bankers?
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