Goldman’s Not Wrong, But Blankfein Is

by lbej

I don’t feel bad for anyone on the other side of a Goldman trade.  I know LOTS of these folks and they knew exactly what they were doing, same as the Goldman traders did.  Nobody in the market thought Goldman traders were a bunch of saints working for the benefit of the downtrodden.  Goldman is a bookmaker and Wall Street is Vegas.  Now, if they fixed games, that’s illegal and they should be prosecuted.  Hopefully that’s what the current investigation will sort out.  But if the betting is legal (it was/is) and the games aren’t fixed…oh, well.  Gamblers know the house usually wins and they bet anyway.

As for the housing market, it was a bubble, not a fraud.  Those are two different things.   Read the rest of this entry »