Jeff Day EA
Evansville, IN

Is there ever a time when people learn NOT to rely on information distributed by Goldman Sachs, Inc. (See their predictions on oil, circa 2007-2008) …

Remember Goldman Sachs, Inc the company who participated in packaging/bundling sub-prime loans with AAA (triple A) rated prime and commercial property? This was from approximately, 2003-2006 when they got John Snow out of the Treasury Office by “consulting” with White House Counsel to advise him he did not have a “conflict of interest” related to, don’t look now, securities or bonds his “stock broker” bought without his knowledge. Winky-wink. ( Did not have conflict but could in the future… http://en.wikipedia.org/wiki/John_W._Snow#Secretary_of_the_Treasury ). The same Goldman Sachs, Inc whose CEO Henry Paulson was then “recommended” to take over in John Snow’s absence. The same guy who had his hands in bundling the assets, he himself would later call, “toxic.” …And who calls any asset a “toxic” thing anyway, except perhaps an enemy of the United States who would like to see the country’s financial system hemorrhage as when inhaling or being exposed to a “toxic” aroma; during a time of transition or when the country might be more vulnerable than normal.

The same Goldman Sachs, Inc who produced not one but two “special reports” about how the price of oil is going to go to 200/barrel due to a potential disruption. http://www.marketwatch.com/story/goldman-sachs-raises-possibility-of-200-a-barrel-oil

The same Goldman Sachs, Inc who when ethics questions were raised about Treasury Paulson having a conflicted orientation to banks he was “helping” and giving large sums of money to, ( http://www.nytimes.com/2009/08/09/business/09paulson.html ), got the White House Counsel to waive his conflict of interest. Though when compared to John Snows’ conflict which was much less on a dollar to dollar comparison basis, one can extrapolate, such “advisory-level” hypocrisy does not come cheap.

The point is, Goldman Sachs, Inc has been involved in the mortgage mess, AND Treasury Paulson was supremely conflicted, having a foot in the mess while at Goldman and a foot in the mess, while at Treasury. Like a side note related to a baseball player who used steroids, Goldman Sachs, Inc was involved in stimulating speculation with their “special reports” and consequent participation in that market. Such that an exponentially increasing, higher price of oil, would immediately distress the sub-prime class mortgage holder and the class of assets they held, that Goldman Sachs had prior bundled and packaged together. That a 25 percent price increase in the price of oil, during a 3-6 month period can be estimated or projected to increase cost of living expenses, by 1.25-3.75% in the same period. Such that a 100 percent increase, in a similar period, or a 140 percent increase in price of oil, in an 8 to 12 month period or, during a short time frame, can cause cost of living expenses to ramp up over 7-35 percent, depending on whose formula is used (Goldman Sachs probably has two or three coefficients and math tables it presents to the public and tables it keeps neatly tucked away, far from public scrutiny). Targeting oil price, directly impacts food distribution and supply routes. The asset class most likely to be affected by this increase? … Bundled with those mortgage classes which might not otherwise be distressed, unless, they are somehow “packaged” with the asset class who is most likely to be distressed. The first class to be hit by a “spike in oil” brought on by a “potential disruption” (which did not actually happen), were those at the bottom who struggle to get to work and pay for basic necessities. (Distress in supply routes or distribution, can also lead to short term, 1-2 week, temporary lay offs, as companies cut on other costs.)

Distress a certain class of mortgages, in a bundle, and you distress the other classes in the bundle. To this end: Sub-prime was prior to Henry Paulson’s tenure at Goldman Sachs, traditionally held in separate distinct classification, and was not “bundled” or packaged with more reliable asset classes of mortgages. Yielding the equation: Goldman Sachs, Inc or GS – (sub-prime + prime + commercial asset classes) * bundling / derivative (thrown in for good measure) + a credit default swap obligation / by the coefficient of John Snows resignation when not having a Conflict of Interest (thanks to a stock broker who is not named) and coefficient of future spike in price of oil (after Goldman unloaded their mortgaged back securities on unsuspecting clients, foreign banks + domestic financial firms) = Implosion and distress of the mortgage backed securities market + a short position for Henry Paulson’s firm, as he is being appointed to an executive branch office namely the Secretary of Treasury Department of the United States.

I know, it was all just a big coincidence.

Side Note: This is the same Goldman Sachs, Inc, who did not produce their “special” reports on oil, until after selling their mortgage back products to domestic clients of the firm, and rolling profits into the oil market. (Yes the same Goldman Sachs, Inc, who targeted competitor firms and sucker clients to experience financial terror and ruin, while being in the trust and care of the firm.)

My point is, can we ask that our best economic journalists and writers, stop making reference to this crooked brokerage house who during any crisis or declared emergency, might like to clonk competitor firms on the head and take their best assets, lie about it, dump the bad parts on the U.S. tax payer base, and then, spend the rest of their natural born lives, lying about it.

The bill to extend and expand the fraud-ridden $8,000 First-time Homebuyer tax credit passed the House of Representatives yesterday on……