Well here's the best I can do for a straightforward answer. If those mortgage backed securities - that later were represented by CDO's (synthetic and otherwise), and various derivatives and insured via swaps (CDS) - all of which were packaged and presented to Moody's, S&P, for rating and sold by the likes of Lehman, GS, BS, C, MS, etc, etc. Well if they contained something that was truly triple A as opposed to something that was triple b and labeled triple A, I somehow think that the taxpayer wouldn't be on the hook for several $Trillion, don't you think?
When some of the big investment type banks figured out how to game the systems that S&P and Moody's had in place to rate mortgages (read the book to find out how they did it - it's only about 250 pages and reads easy) the result was magic - they found out that they could turn chicken shit into chicken salad.
I am only a judge and jury of one, but in my estimation, as Ricky would say to Lucy: GS, you got some 'splainin to do.
As far as what GS is currently being charged with, I believe if you put together a package in collusion with someone so the intent is that it will go bust and then you sell it someone who is your client; well I kind of think that GS has a legal and moral obligation to divulge the quality of what they're selling. I look at as being somewhat akin to knowingly selling thalidomide to a pregnant woman. But that's just me, I'm sure there are others who feel different. |
