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Strategies & Market Trends : Fundamental Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: bruwin who wrote (1158)	4/18/2010 4:10:18 PM
From: Madharry	Respond to of 4719

much as i detest goldman, ive seen much worst things going on such as appointing a guy to be secretary of the treasury who failed to do his taxes correctly twice and on top of that screwed up at his last job being the head regulator of NY banks as head of the fed. Oh did i mention that most of his public comments fly in the face of reality? Then we have the SEC who seems to have missed every major fraud of the last two decades despite getting clearcut maps in several cases and whistleblowers contacting them numerous. now they happen to announce charges against GS during an options expiry day, at the same time as a huge report being released by the inspector general detailing how the SEC screwed up its investigation of Stanford financial waiting 12 years to do anything about it, and the financial reform package. yep like i would trust these regulators as far as i can throw them. what its going to be different this time? Or how about Sheila Blair of the FDIC telling WAMU that they have a couple of weeks to find a buyer, while secretly negotiating to hand the bank on a platter to JP Morgan thus causing billions of dollars of losses to shareholders. The best thing Obama can do is announce Geithner's resignation right away, come clean about the disaster that has been the SEC, the FED and the FDIC, and convince us that things are going to be different this time. BTW Mauldin comments that one of the provisions in the regualatory bill will raise the bar on who is considered an accredited investor, and makes lots of smaller deals have to be registered with the SEC, that did not have to be registered before, thus impeding the formation of new business greatly. The problem here isnt what bad guys were doing the problem is that our regulators have been imcompetent and promoting them isnt going to help. its like throwing money int schools that arent working, or paying more for a health system where there is no accountability.

To: bruwin who wrote (1158)	4/19/2010 3:26:42 AM
From: Madharry	Read Replies (1) \| Respond to of 4719

Now that i've read the actual complaint by the SEC, Im not as confident as i was before that this is a flimsy case. However, I dont know that this is vastly fundamentally different from cases where you think someone is representing you but they arent really . for example in the United States real estate brokers take around prospective buyers to look at houses, if a sale is made they will earn a 3% commission paid by the seller. does this real estate broker represent the buyer or the seller? The buyer would like to think that broker represents his or her interests but he doesnt really. I purchased a house and later found out that my broker had information which had i known about would have caused me to offer a lower price than i did. However the amount was not worth getting embroiled in a lawsuit over. I was also never informed that part of the lawn that I thought belonged to me belonged to the city, a material fact I would have liked to know about before I closed on the property. The fact is that G&S is in the business of creating products to be sold. I wonder if aca was aware that Paulson was paying Goldman a fee to structure the transaction and whether this was a required disclosure. Clearly, had aca known that the whole purpose of Goldman setting up this transaction was for Paulson to be able to short into it, they would never have done the deal, but GS business is to find buyers and sellers for products. They probably do this all the time. GS also arranges all sorts of collars for executives of traded companies that protect them in case of declines in share prices of the companies that they run. This is never reported to the SEC and the SEC has never insisted that these collars be made public. Is this any worse than this deal?

To: bruwin who wrote (1158)	4/19/2010 4:21:19 AM
From: Madharry	Respond to of 4719

one last comment- lets compare what goldman did to what Paulson and Geithner did with regard to the AIG bail-out. they told congress that the financial system would collapse if they did not bail out aig, without disclosing who the major beneficiaries would be of the bailout, specifically they didnot disclose that Paulson had a vested interest in GS being bailed out. At the time one of the bills before congress on the bailout contained a clause that Paulson could not be sued in the future for any actions taken as Secy of the the treasury. Talk about a scam! I find it difficult to believe that speculators/investors are running to the safe haven of the dollar and dumping gold and silver in response to this.