I just got done reading the SEC document, pertaining to its lawsuit versus Goldman Sachs, and I’ve been laughing– rather hysterically–ever since. I’m not going to name names, because that’s not what I do. But, some of you finance bloggers out there just don’t get it.
Yeah, “Fabulous” Fabrice Tourre is a scumbag of monumental proportions; but that’s the business. Eighty five percent (give or take) of all the brokers, investment bankers and big deal makers out there are embedded in deeply rooted, flawed, scum bag personality traits, that can only be corrected via death. Look, I don’t see what the big deal is about John Paulson helping to creating the product, just because he intended to buy insurance against it. Who the fuck was he, prior to 2008? Sure, he was successful, just like a multitude of other hedge fund managers. But, it’s not like the guy was fucking Merlin, or some sort of space alien magician with crystal balls coming out of his ass. If the game was prolonged a little longer, Paulson would have looked like a fucking first rate jackass, getting poleaxed on a bunch of CDO’s. It just so happened that he was right, with the idea and timing. Do you know how many hedge fund managers get wiped out, betting one way, because their timing was off by a few months?
And, it’s not like Goldman or ACA was marketing the fucking products to 85 year grandmothers. They were selling these products to sophisticated investors, who know how to read a fucking balance sheet. It should not matter, not one fucking bit, that Paulson was intending to take a short position. Who gives a fuck?
When I go out and buy Fuel Systems Solutions, Inc. [[FSYS]] , I do so knowing that there are 1,000 guys out there, just like Paulson, that are betting against me. That’s Wall Street, gentlemen. That’s risk.
As far as I am concerned, the SEC should sanction the Fabulous guy, ding Goldman a few mill for not properly supervising him, and the rest of the ordeal should be hashed out between the banks. Let ACA and the other institutions file lawsuits against Goldman. Doorknobs to donuts, any judge in his right mind would say “you are a sophisticated investor and are supposed to understand the inherent risks associated with the products you buy on behalf of your shareholders/customers” aka fuck off.
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