The Times reports this morning that financial firms like Goldman Sachs, Morgan Stanley, Deutsche Bank and others created mortgage-backed securities made up of bad debt, sold it to clients, and made huge profits while their clients lost billions on securities they were led to believe were solid investments.
The SEC is looking into the matter, especially to see if Goldman and the other firms purposely helped clients select securities that would lose money
But many of the financial wizards and hedge fund managers who made a killing on these toxic collateralized debt obligations are laughing all the way to the bank with their ill-gotten gains.
And of course the firms themselves are Masters of the Universe with so many of the others - like Lehman and Bear Sterns - out of the picture.
With cronies in both the Bush administration and now the Obama administration looking out for them, these predators and vultures at Goldman and Morgan and the other connected financial firms have gamed the system and turned the "free market" into one huge rigged casino - and its investors and the American taxpayer who continue to lose (the stock market had the worst decade ever from 1999-2009.)
But until people start to go to jail for this, nothing will change on Wall Street - the rigged casino will continue.
And now, as has been noted before on this blog and elsewhere, the very boys who created the rigged casino and have stolen billions want to turn their attention and efforts to public education.
And the Obama administration is cheering them on.
What more evidence do we need that taking Wall Street management style and business ethics and transferring them to any other area of life is a bad idea than the piss-poor record of the overall stock market this past decade and the financial collapse that was created by the financial geniuses on Wall Street to enrich themselves and bilk everybody else?
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