I am constantly amazed by how differently the various news channels present the same stories. This morning one of the channels we watch mentioned the Goldman charges and claimed that Goldman created the investment instruments they are charged with fraudulently selling. Other sources yesterday and today make it quite clear that Goldman they did not create the investments. I do wish these people would get the information straight. It is bad enough that they sold the investments without disclosing that the creator, also a client of theirs, was betting against them. I also don't have much patience for the argument I heard yesterday on CNBC that the the investment funds and banks that bought these instruments should have ferreted out the information when Goldman didn't disclose it. There has to be a certain amount of trust and good faith if the allegedly capitalist system is to work and Goldman violated that. Nor does it matter that, as one of the talking heads pointed out, the little investor didn't get hurt directly in this and only the 'big' boys were damaged. Too many little investors put money into the pension funds and banks who put money into investments Goldman pushed.
Newsweek has this op-ed piece by Daniel Gross that makes some very good points on the Goldman case. I remember a furor raised some years ago when investment firms were informing large investors of prime investments or of potential losses before the smaller investors who were either cut out of the money making possibilities or were saddled with the losses. That revelation led to regulations prohibiting that practice. All clients were supposed to have equal access. But, evidently, that practice has simply shifted sideways a bit. Goldman simply serves some clients better than others--and some not at all.
2 comments:
I was teasing!!!
Bottom line is that Goldman screwed up again!!!
The big investors always get treated better than the little ones -- partially because they demand it. Just a fact of life.
I don't believe in investments or in the stock market. To me its all paper, not real money. All of these people are greedy and greed will find them out.
Have a good one :)
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