Goldman Sachs owns Washington. Why on earth would Washington insiders bite the hand that takes from them?
The blather in the media tried to explain what happened and who will win.
No one asked the most pertinent question: Why would the SEC (Securities and Exchange ommission) charge Goldman Sachs with civil fraud? What is the larger point here? What is the political upside or downside?
Yes, Congress is posturing about financial regulatory reform, but Goldman Sachs can easily buy off any and all members of Congress.
On the cynical political side of this story is the fact that almost all Americans hate everything about Wall Street and this fraud charge gets everyone feeling warm and fuzzy that the government is finally doing something to these bastards. Polling shows that Main Street wants to sack Wall Street, and with good reason.
But, what is to be gained by embarrassing Goldman Sachs and thwarting the market's rally?
The rational assumption is that by pretending to show that Washington is getting tough on Wall Street, the momentum for regulatory reform will be blunted. Without reform, Goldman Sachs and the rest of the gangsters on Wall Street can continue to steal from foolish investors and the national treasury.
Make no mistake, Goldman Sachs is in control here. In fact, they're shorting the extent of Americans' ire at the financial industry's pre-eminent player. They're betting that Americans will place their anger and reform at Washington and other political leaders, rather than where that anger and reform should be directed -- at them.
In that sense, they over-inflate the importance of the Tea Party movement. By betting on Tea Party sentiment, Goldman Sachs ignores the vast majority of Americans who want to see them pay for destroying our -- and the world's -- economy.
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