Asian markets will really cop it on Monday morning, none of this as yet factored in, European markets got caned on the news CAC DAX FTSE
Goldman Sachs Fraud
By Jon Taplin - April 16, 2010, 11:09AM Finally the chickens are coming home to roost on the greatest short scam of the last decade. Goldman Sachs and John Paulson are being charged by the SEC with fraud. As I pointed out months ago, this was a scam of epic proportions.
Let's be clear. Goldman and Hedge Fund traders like John Paulson worked hard to package the worst piece of crappy grouping of sub-prime CDO's into "synthetic securities" that they knew would default the fastest. They then pushed clueless rating agencies like Moody's into rating them AAA. They then went out and found sucker Pension fund administrators who had an asset allocation model to buy x% mortgage securities every month to (in Blankfein's term) "to source the other side of the transaction" and offered them insurance from equally clueless shops like AIG to make sure they would get paid 100 cents on the dollar when the inevitable default arrived. If this isn't criminal, it sure should be.
"The great vampire squid wrapped around the face of humanity", Goldman is going to be brought to the bar of Justice. If there is any justice, John Paulson might actually find himself at Club Fed, unable to enjoy the $12 Billion in profits in what he called The Greatest Trade Ever .
