Is Goldman Guilty?
"When the tide goes out, you find out who has been swimming naked." ~ Warren Buffet.
History does repeat, and Goldman's fraud is just history performing the same song but with different singers. After every crisis, witch-hunts increase and politicians shout, "We must make sure this doesn't happen again."
While today's charges will damage Goldman's reputation, and some clients and employees will leave, the net effect is that not much will change.
While the politicians and the press make Goldman a scapegoat, the banking system remains unchanged. There may be some financial reforms passed, but nothing will be substantially different.
"Too big to fail" means the bank has politicians and the government on their side. Politician decide which banks live and which banks die. This is called Crony Capitalism.
History does repeat, and Goldman's fraud is just history performing the same song but with different singers. After every crisis, witch-hunts increase and politicians shout, "We must make sure this doesn't happen again."
While today's charges will damage Goldman's reputation, and some clients and employees will leave, the net effect is that not much will change.
While the politicians and the press make Goldman a scapegoat, the banking system remains unchanged. There may be some financial reforms passed, but nothing will be substantially different.
"Too big to fail" means the bank has politicians and the government on their side. Politician decide which banks live and which banks die. This is called Crony Capitalism.
