It is now acceptable to participate in practices that were once thought of as unfair. It is now normal to become conspicuously wealthy by defrauding the unwary investor by means of mortgage-backed securities that were fraudulently labelled safe.
It is an organized and acceptable practice to bet on the failure of mortgage-backed securities: Goldman Sachs made money through fees then made even more money by betting against those same securities. It is now considered normal every-day behavior to treat greed as a routine way to accumulate wealth.
It is all right for small acts of corruption to go unpunished when a very large number of people practice them. Not one executive of GS has been criminally prosecuted for its unethical practices. It is now okay to prey upon others in order to transmit wealth from the many to the few at the top.
Bailouts of banks are now considered commonplace and a good way to forgive the debts of banks but it is less likely that foreclosed homeowners will ever have their debts forgiven. It has become normal business practice for Goldman Sacks to set aside $3.4 billion for taking care of future lawsuits. What appears trivial to Goldman Sachs is devastating to those seeking redress from the effects of GS power and wealth.
Short selling is a normal way to conduct financial business even when it destroys the very same banks practicing it! We are now participating in a new normal where Goldman Sachs's survival as a bank is more important than the individuals that suffered great losses because of GS frauds, frauds that have been laid out in this blog.
No wonder there is no confidence in the banks as Rober Lenzner's article describes it below:
The Battered Investment Class Has No Confidence in Markets, Companies, Banks, Governments
By Robert Lenzner - Forbes
Over the past ten years investors have been battered by the dotcom bubble(off over 50%), 9/11 (off over 25%), the credit crisis bubble(off 50%), the crash of commodities(down 25%) and now the government debt downgrade together with a dire European sovereign debt crisis(down 20-25%). Nor have we ever gotten back to the all-time peak of the Dow Jones industrial average of 1410, set in October, 2007. It’s no surprise that investors are fleeing equity mutual funds and shoved $50 billion of their savings in money market funds yielding zero laast week. Zero is once again again preferable to losing money.
Just last week trading volume doubled to 13 billion shares daily as volatility was King; down 634.76 on Monday; up 429.92 on Tuesday; down 519.83 on Wednesday and up 422 on Thursday. This kind of record trading volume plus volatility can only have been the result of extraordinary high frequency trading by computer and the quant hedge funds, going in and out of Apple and IBM and big bank shares dozens of times a day.
. . . .
Every day there is another government investigation or law suit against Goldman Sachs, Citigroup, Bank of America, or JP Morgan. Every day there are unconfirmed rumors about giant international banks in Europe like Societe Generale. Fear runs rampant, causing the ban on selling short bank shares in Europe. Margins have been raised on the speculation in gold. The panic is so powerful that investors are pushing up Treasury bond prices as they rush into the safe confines of Uncle Sam–the gentleman who just had his credit rating lowered.
And there seems no therapy or cure for this intense post traumatic stress syndrome to finance capitalism. You better pray there’s no hard landing coming for China.
Read the article here