Senate Witch Hunt

I’m watching the Goldman Sachs meeting by a subcommittee of the senate, and it looks like the Witch Hunt is abound.  Who’s next Chase, BAC, Citi, …? 

Some of the senators just look plain ignorant (especially Senator Levin)…  I don’t see why they were speaking if they don’t know what they are asking about.  I don’t think they have any idea what a market maker is, based on some of their questions and responses.  

Mr. Viniar make the senate look pretty bad!  The more he talks the more the senate looks like they are trying to pin something on Goldman that doesn’t exist. One senator kept going on and on about ethics, almost like he was hoping one of the Goldmans executives would break down and cry, it was almost funny.  Senator Levin went on about Goldman taking 2 billion dollars from the tax payer, but really the gov. gave the money to AIG, and AIG paid back a loan that they owed Goldman…  Levin kept going on that Goldman took taxpayer money, over and over, and Goldman CEO Blankein kept explaining that AIG payed the load, and if AIG didn’t, Goldman was insured by an insurer and wouldn’t have needed the money anyway.  It was a very dumb argument that Senator Levin kept saying over and over…  I now have no respect for Levin and think he isn’t the brightest of senators. 

While I think Goldman didn’t really do anything wrong, I think some of the industry practices in their market need to be changed.  But that’s not their fault, that’s the lawmakers fault sort of.  Let’s be honest, the lawmakers didn’t understand the complex financial instruments that are out there!  But I’m pretty sure Goldman did not try to cause the “Great Recession“. 

What really kills me is that the government is pouring over emails, reading emails send by Goldman employees that were being enthusiastic about their job, or offering their feelings about certain investments. 

What also kills me is the audience members dress in old style jail uniforms, what a joke.  I’m absolutely positive they don’t have a clue about the financial markets, but they sure do act like they do!  What losers… 

Well, after hearing Blankein, I’m firmly in the Goldman camp!  I especially agree with him in his statement that some of the limitations that the government are proposing will damage the US financial system, and make them so the foreign bank will have an competitive edge! 

In general, the more I see the senate and government in action, the more I realize than any of us could do just as good of a job, if not better! 

-MR