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According to the Collins English Dictionary 10th Edition fraud can be defined as: "deceit, trickery, sharp practice, or breach of confidence, perpetrated for profit or to gain some unfair or dishonest advantage".[1] In the broadest sense, a fraud is an intentional deception made for personal gain or to damage another individual; the related adjective is fraudulent. The specific legal definition varies by legal jurisdiction. Fraud is a crime, and also a civil law violation. Defrauding people or entities of money or valuables is a common purpose of fraud, but there have also been fraudulent "discoveries", e.g. in science, to gain prestige rather than immediate monetary gain
*As defined in Wikipedia

Sunday, November 27, 2011

Here's One Poker Game that Goldman Sachs Will Not Lose

The following article by Paul Craig Roberts seems to say that some banks are punishing other banks by refusing to invest in their bonds. The banks are acting only on their own behalf--to not have to take losses (haircuts) and to inflict austerity on the citizens of the country that is having difficulty paying its debts (some of those debts are hangovers from the sub-prime debt crisis that originated in the US).

Maybe both the banks that loaned money to countries that shouldn't have been given loans and the banks that accepted those same loans should pay the price and not ordinary citizens.

It's as though the banks are playing with dice over the life and breath of the citizens of both countries as they are trying to decide which bank will get the prize money and which bank will get the rent from the harsh austerity demanded by those same banks!! Is is a cruel and obscene joke and Goldman Sachs is right there tossing a loaded die with the others!

Goldman Sachs Has Taken Over
Bankers have seized Europe
By Paul Craig Roberts - opednews

On November 25, two days after a failed German government bond auction in which Germany was unable to sell 35% of its offerings of 10-year bonds, the German finance minister, Wolfgang Schaeuble said that Germany might retreat from its demands that the private banks that hold the troubled sovereign debt from Greece, Italy, and Spain must accept part of the cost of their bailout by writing off some of the debt. The private banks want to avoid any losses either by forcing the Greek, Italian, and Spanish governments to make good on the bonds by imposing extreme austerity on their citizens, or by having the European Central Bank print euros with which to buy the sovereign debt from the private banks. Printing money to make good on debt is contrary to the ECB's charter and especially frightens Germans, because of the Weimar experience with hyperinflation.

Obviously, the German government got the message from the orchestrated failed bond auction. As I wrote at the time, there is no reason for Germany, with its relatively low debt to GDP ratio compared to the troubled countries, not to be able to sell its bonds. If Germany's creditworthiness is in doubt, how can Germany be expected to bail out other countries? Evidence that Germany's failed bond auction was orchestrated is provided by troubled Italy's successful bond auction two days later.

Strange, isn't it. Italy, the largest EU country that requires a bailout of its debt, can still sell its bonds, but Germany, which requires no bailout and which is expected to bear a disproportionate cost of Italy's, Greece's and Spain's bailout, could not sell its bonds.

In my opinion, the failed German bond auction was orchestrated by the US Treasury, by the European Central Bank and EU authorities, and by the private banks that own the troubled sovereign debt.

My opinion is based on the following facts. Goldman Sachs and US banks have guaranteed perhaps one trillion dollars or more of European sovereign debt by selling swaps or insurance against which they have not reserved. The fees the US banks received for guaranteeing the values of European sovereign debt instruments simply went into profits and executive bonuses. This, of course, is what ruined the American insurance giant, AIG, leading to the TARP bailout at US taxpayer expense and Goldman Sachs' enormous profits.

If any of the European sovereign debt fails, US financial institutions that issued swaps or unfunded guarantees against the debt are on the hook for large sums that they do not have. The reputation of the US financial system probably could not survive its default on the swaps it has issued. Therefore, the failure of European sovereign debt would renew the financial crisis in the US, requiring a new round of bailouts and/or a new round of Federal Reserve "quantitative easing," that is, the printing of money in order to make good on irresponsible financial instruments, the issue of which enriched a tiny number of executives.

Certainly, President Obama does not want to go into an election year facing this prospect of high-profile US financial failure. So, without any doubt, the US Treasury wants Germany out of the way of a European bailout.
Read the rest of the article and see the comments here


Numb said...

The oligarchy of moneyed interests have done a spectacular job
convincing the working middle class they should be angry at 20 year old
OWS protestors, illegal immigrants and the inner city welfare class,
rather than the true culprits – the Federal Reserve, Wall Street banks
and mega-corporations.

OWS is right said...

Multi-Trillion Bank Bailout Leads to Multi-Billion Bank Profit Bloomberg Finds

Back in August when Bloomberg first scoured the depraved depths of
the almost-30,000 pages of FOIA-released Fed documentation surrounding
the biggest ever bailout in history, the sheer volume of the loans,
ultra-low cost of funds, and lying-through-their-teeth nature of the
bank CEOs was enough for some vindication of tin-foil-hat-wearing fringe blogs. In this month's Bloomberg Markets magazine, much of this is rehashed but the truly incredible part - though not entirely shocking to us - is the
magnitude of the profits that the banks amassed directly as a result of
these 'secret' bailouts. Almost a quarter of their entire income was
generated during this period from bailout-related sub-market funds. Over
$13bn profit was 'appropriated' during the crisis with Citi and BofA
among the largest profiteers.


For those with the stomach for what is the highest form of crony
capitalism writ large and explained in its clearest and most egregious
manner yet, the article also has an interactive chart of the banks' profit-gains direct from the Fed's bailouts during this period.

Looting said...

MF Global looting can continue! Missing funds and fees likely to go higher: Guest Post by

An abuse of a Federal Bankruptcy court?

This discussion of the paved potential for abuse and more looting, does not even consider that is is not at all remotely in the Trustee’s interest to rapidly return customer (non-creditors) assets and liquidate MFGI. All confusion, all delays, the bigger the mess and less efficient, the more a Bankruptcy Trustee and supporting Bankruptcy industry will earn from the estate of MFGI.  Now estimated to be well over $100 million or more per year!  Added to this, and in spite of most recent announcements, few US customers will see a 60% recovery going into December.  The requirements for a 60% recovery are so rigid; we are now finding out, few can qualify according to the Trustee rules.   Who knows what additional hurdles for recovery are going to be created in the hunt for fees?

To reiterate English’s call, it is now imperative that Judge Glenn immediately demand disclosure of all trading and intercompany transfers.  Without urgent action to secure these records, protection of customers is impossible,  and the integrity of the Court forever in peril.

Locked in said...

MF Glob 60% Cash Lands Frozen at Rj Obrian - Global to Apex (or Local)

Like mystery meat, or a dog getting a bone, 60% of my cash got transferred to a third party by the MF Global Trustee in the form of RJ Obrian. Of course I cannot get my hands on my own money it being frozen, of course there is no resolution to the other 40%, of course nobody has gone to jail, of course the CME is not making me whole, of course the CFTC is out to lunch and busy backtracking itself in hindsight, of course the SIPC (security dealers) won't assure client funds. Of course I am moving money out of RJ Obrain at the first instance.

The people accept theft said...

No Laws Were Broken

I mean, if all the global bailouts didn’t fix the problem, including $16 trillion pumped out by the Fed after the 2008 meltdown, what’s another $800 billion going to do?  The reason why things are not going to get better is that corruption is rampant and the financial system is totally broken.  Bailouts are treating the symptom, but the disease is unbridled fraud.  Many people don’t realize this because the corporate controlled mainstream media will not report on crimes of the financial elite.

According to Professor William Black, the reason why we have “recurrent intensifying crises . . . is these epidemics of fraud from the C-Street—from the CEOs and CFOs.”  Professor Black holds duel PhD’s in economics and law, but he is not just some run-of-the-mill academic.  Professor Black is also a former bank regulator who spearheaded the cleanup of the S&L crisis.
Look at the latest blowup with MF Global.  There is more than $1 billion of segregated customer funds missing and not a single criminal charge.  Does anyone think Jon Corzine is going to get prosecuted?  I’ll be shocked if he is because he has friends in high places including the White House.

TomTom said...

And the incoming Chairman of Deutsche Bank is Dr Paul Achleitner of Allianz Insurance, parent of PIMCO.....himself an alumnus of Goldman Sachs......and progenitor of the idea of the EFSF issuing CDS to make haircuts palatable by subsidising large bondholders like Allianz and Deutsche Bank; the two biggest sponsors of Merkel's CDU Party

Theodore Smith said...

Very interesting article, I also think that he'll will not lose the game. Thanks.
poker tips

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