It’s been a tad more than a year since The MacDougal Post started blogging. The flash crash happened, and we couldn’t take it anymore. Knowing what we know about the Presbyterian Mafia and not telling anybody. That we’ve been at this for so long shows you how aggravated the editorial staff still is.
And so, after the news broke yesterday that Goldberg Styx got subpoenaed over those sub-prime home mortgage-backed bonds we’re all too familiar with by now, and we turned on one of those financial networks and listened to a panel of “experts” enlightening the TV audience at home, and we realized that what we were listening to was mostly ourselves filling in what the “experts” weren’t telling the TV audience at home, we got aggravated all over again and had to write about that too.
"Expert" commentary is reported in normal font below, ours in boldface italics.
Goldberg, long $1 billion in mortgage-backed bonds in 2006, realized these securities were basically worthless and, 1) over maybe 6 months or so liquidated the entire position and 2) by 2007 undertook a massive sales campaign to go short by some other similarly huge amount, sticking their own customers with the losing end of those trades. Some Australian outfit took $100 million of the shorted trash, a week later had to write a check for $5 million to cover their first losses, kept getting hit like that in the ensuing weeks and went out of business two months after making the buy. Morgan Stanley got treated the same way, only more so. These were the two worst cases, and no other names got mentioned. The whole time the firm was switching from humongously long to humongously short by selling customers pure garbage, Goldberg knew the garbage was garbage and didn’t tell them. In fact, that's why they were selling it to them.
Goldberg’s entire short position was in bookkeeping transactions, not actual securities. These suckers were buying thin air. Short-sellers even pay the interest on this phony-baloney stuff themselves, making marks think the actual issuer made the payments. All that ripped-off customers were getting was a contract requiring them to give Goldberg the money the poor b&st&rds who actually owned such bonds were losing, but Goldberg's marks didn’t really own the bonds. Nobody did because there weren’t any bonds. Goldberg made the whole thing up to fleece its customers.
Congress had to pass some whacked-out, crazy a$$ legislation to make this kind of swindle legal, and the Judiciary had to rule that Wall Street racketeers could get away with these obsenities to make their cons stick. The whole crock is a total crock, and everybody in the House, Senate, and on the Supreme Court needs to get thrown in the clinker.
As for the Securities and Excuses Commission, clearly watchdogs who won’t watch the dogs they’re supposed to be watching need a whole other range of punishment. Bloodbath Mary, the piece of work who shuttered the 2008 hearings on short-selling, publicly announcing that short-sellers had nothing to do with the financial holocaust caused by short-selling, is clearly an enemy non-combatant. This unabashed mob stooge needs waterboarding.
There. That’s the story we heard. Now Post readers should have no trouble hearing it too, if they let the little voice inside their own heads join in.
