TR--The worst part of that is that Goldman was one of the large lenders to LT Capital. And, on top of that some of the Goldman partners are investors in that hedge fund. So, they were facing a double hit. A big multi-billion hit. Word is LT Capital had something like $1.4 trillion in exposure, all on the cuff! The power of synthetic derivatives.
Then, the fact that Robert Rubin was the former ceo of Goldy, this whole thing starts to really smell.
It dosen't take a Nobel prize winner to figure this one out.
Then add the fact that we tell the Japanese to just let your problem banks, etc go B/K, and then they bail out these connected investors, you really have to wonder if you can believe anything the FED/Treasury says. I never did. Seems like being a liar in Washington has become the accepted way of conducting business.
It's only a matter of time before people start walking away from their 125% mortgages. Then what? More bank handouts?
The train is about to leave the tracks, and this is going to be one hell of a train wreck.
As always, watch what they do, not what they say. |
