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  • Morning Bell: The Senate's Goldman Kabuki

    The New York Times reports this morning, “Politicians like nothing more than a convenient foil, and Democrats locked in a stubborn impasse with Republicans over new rules to govern Wall Street believe they have found a gold-plated one in Goldman Sachs. Democrats say the convergence of their push for an overhaul of financial regulation and a prominent federal securities case against the prestigious investment firm is a matter of coincidence, not planning.” Sen. Byron Dorgan (D-ND) added: “If the disclosures at these hearings are not the final nail that persuades the American people to demand this be done now, I don’t know what would be.”

    But the big problem for the leftist majorities in Congress is that the American people just don’t believe that Washington has any idea about why the financial crisis happened or how to regulate our financial system. According to Rasmussen Reports, 64% of Americans are not confident that policymakers in Washington know what they’re doing when addressing the current economic problems on Wall Street. Intent on proving his ignorance of how finance works, Dorgan went on to say: “To bet against your clients, to bet against your country, all for the sake of big profits. The timing is serendipitous but it should increase the pressure on Republicans.” Is Dorgan for real? Does he really believe that anyone who did not blindly keep inflating the housing bubble was “betting against your country”? Is it now unpatriotic to believe that housing prices cannot infinitely rise?

    The left would have us believe that the 2008 financial crisis was all the fault of greedy Wall Street bankers like those at Goldman Sachs who dared to change their investment strategy on the belief that housing prices were inflated. To protect against future financial meltdowns, the left wants to give more power to the same federal regulators who failed to recognize the systemic risk caused by the very bubble Goldman and others correctly identified. In fact, one of the main reasons for yesterday’s hearing was to deflect attention away from Washington’s role in creating the 2008 financial crisis.

    It was the government-created and subsidized Fannie Mae and Freddie Mac that played leading roles in the markets at the center of the housing storm. But the left prioritized their political goals over financial reality. Rep. Barney Frank told the House Financial Services Committee: “These two entities–Fannie Mae and Freddie Mac–are not facing any kind of financial crisis,” and “[t]he more people exaggerate these problems, the more pressure there is on these companies, the less we will see in terms of affordable housing.” And the author of thevery financial reform bill currently being debated in the Senate, Sen. Chris Dodd (D-CT) , told CNN in July of 2008: “To suggest somehow that [Fannie Mae and Freddie Mac] are in trouble is simply not accurate.” Just two months later, completely overrun by bad debt, both companies were placed in conservatorship.

    So unable to acknowledge the government’s role in the last crisis, not only were Fannie and Freddie not mentioned at yesterday’s hearing, they are not included in Dodd’s financial regulation bill at all. Hence the need for a villain like Goldman. And what does Goldman think of the actual legislation the left is using them to pass? They are for it, Goldman CEO Lloyd Blankfein confirmed yesterday.

    Quick Hits:

    • As Standard and Poor’s cut Greece’s credit rating to junk status, investors wonder if Portugal, Spain and even Ireland can borrow the billions of dollars needed to finance their government spending.
    • Section 9006 of Obamacare force millions of businesses to issue hundreds of millions, perhaps billions, of additional IRS Form 1099s every year.
    • Thanks to Governor Jan Brewer (R), Arizona became the first state to opt out of abortion coverage in any insurance exchanges created by Obamacare.
    • According to Democracy Corps‘ new analysis, Obamacare’s passage did not produce even a point rise in the president’s approval rating or affection for the Democratic Congress.
    • According to Rasmussen Reports, only 39% of voters favor legislation aimed at reducing global warming and 56% of Americans do not want to pay for it.
    Posted in Ongoing Priorities [slideshow_deploy]

    67 Responses to Morning Bell: The Senate's Goldman Kabuki

    1. Ken Jarvis says:

      The HF, Murdoch's WSJ and FoxNews, and GOP

      want to give Wall street a FREE PASS.

      The HF, Murdoch's WSJ and FoxNews,

      are THE VOICE OF THE GOP.

      LVKen7@Gmail.com

    2. Arnie Rosner, Founta says:

      The final nail is the fact that congress, while it may look as though they are locked in mortal combat (in the form of a debate), are really in a tight embrace and engaged in a conspiracy against the American people. Neither party or the courts can be trusted to honor the constitution and the rule of law.

    3. tigger says:

      Thanks for printing the truth

    4. Sha says:

      It's reality check time. Revisit 1980's with failed savings and loans, new legislation, and FDIC, and promised checks and balances. We've already been through this promised oasis of security before, but leadership failed then, and now. Implement simple basics again, convict the criminals, and clean it up the mess.

    5. Karen S says:

      About time the NYT is starting to see the light and tell the American people what is going on here. GS likes this plan because a bunch of their x employees are now advising the white house- connect the dots and if you need help watch a few episodes of Glenn Beck- he has laid out this incestuous relationship out very plainly. Our main stream media has failed the American public for the last several years by being bought and sold by this administration. When will they wake up and investigate what is really going on in Washington let's hope it is not too late.

    6. Jeanne Stotler, wood says:

      Members of Congress are like the ostrich with it'e head in the sand, if they ignore it or not acknowledge it's existence, then it's not there. G.W.Bush warned Frank about the problem and he and others choose to ignore it, now they say it's all Pres. Bush's fault. Nov. is the time to clean house and the senate, lets bring in good conservative heads to work all this our.

    7. okiejim says:

      Congress needs to look inward to determine where our financial system faltered. Fanny Mae and Fanny Mac are two prime examples of where the system failed. So are huge political donations made by the fiunancial community to those very legislators currently acting so pompously as they sit in judgement against Goldman Sachs. There is plenty of fault to go around on both sides of the isle and on both sides of the ineterrogation table. Let's hope the November purge results in more honor in Congress than currently exists.

    8. MJF, CT says:

      The problem is the government! The government caused the entire mess trying to make "the American Dream" available to everyone – even if the people who were dreaming couldn't afford it. The government forced the banks to break their rules on lending by threatening to withhold federal funds. The government forced the entire issue across the board without listening to the consequences. The government then jumped into the game and the referee became a player (Fannie & Freddie) so there was no one watching the store. The government caused this yet no one in the government will admit to it. Either they are truly stupid or they are liars!

      Let me also say that anyone forced to appear in these kangaroo courts should not open any books or answer any questions. I suggest that they simply sit there and tell the idiots on the "bench" who REALLY caused the problem in no uncertain terms. I would love to go nose to nose with any of these self righteous idiots from the government just to show the American Public how really stupid they actually are!

    9. Dale Traylor says:

      Please keep hammering this so the point is clear with all Americans. The left caused this and that is the fact…..The mainstream media is surely not doing their job, which of course is the 2nd most important media clamity since the Obama run up to dictatorship.

    10. Giles says:

      This is just one more example of DC government creating a crisis, passing the blame back to the center of the crisis and then rushing in to rescue the nation from imminent catastrophe. After listening to the initial Fiscal Commission meeting is was apparent by the statements made this agenda is going to continue. It is make a statement ram it through and then consider the consequences of all previous actions. This must stop. There is enough proof that they are only addressing a hand picked issue and ignoring Fannie and Freddie, of course that is "government" not private. Even a simple minded uneducated citizen, who must balance the household budget on a weekly, maybe even daily basis, can understand you don't keep throwing funds down the rat hole. Better they had taken those funds and had a ticker tape parade in New York City, at least someone would have benefited even for a while, the wino would have had his bottle. This is ridiculous. Jeb Hensarling presented a bill that is currently under proposal in the House, HR 3964 as a solution to the problems this commission is going to address. Of course it was evident from opening to closing remakrs, the "American people need educated, there is a lack of understanding the problem and the sacrifices that must be made in order to solve them", quote from one of the chairman of the commission. Sacrifice meaning the people will be taxed and must accept this hardship on their financial status while DC government will decide where those funds will be spent and not be accountable for one single penny. DC we get it, you are irresponsible and incapable of doing as you say, BALANCE YOUR BUDGET, CUT YOUR SPENDING, ACCOUNT FOR THE TRILLIONS OF DOLLARS YOU SPEND, WHERE YOU SPEND IT, HOW YOU SPEND IT. REVIEW CURRENT REGULATIONS, USE THE ONES THAT WORK, IF UNUSED SEE IF THEY WORK, if not get rid of them. It is also very clear you don't use the regulations you have, you simply create more.Get on with a simplified format, like using the Constitution, which you each pledged an oath to uphold and go on from there.

    11. Gayle Cranford, Herm says:

      The sheer arrogance of the Senate to question Goldman-Sachs when Congress is responsible for the recession is mind-boggling. They are counting on the ignorance of many American citizens in order to orchestrate blame on Wall Street. Class envy once again.

    12. Hank, The Villages, says:

      Wasn't it the same Senator Dodd and Rep.Franks who created the problem by forcing Institutions to lend to folks who couldn't possibly handle these mortgages?

      Most will agree that rising gasoline prices impact on our entire economy and the price increases are not caused by supply and demand problems but by the speculators. Why don't these clowns in Congress look into this instead of diverting blame from themselves?

    13. Chance, TX says:

      "I'm shocked to learn there is gambling going on here." This should be the soundbite from this absurd Kabuki theater. What's next, hauling up casino execs because they actually bet on players to lose and the house to win? Could any member of Congress (or the President for that matter) grilling the Goldman execs even explain what a derivative is? Furthermore, are they aware that "short selling" is perfectly legal and done every day– maybe Democrats should consult George Soros for a primer on it, as he made over $1 billion in a single day shorting British pounds. The real question is, why weren't other investment firms as savy as Goldman? It is their fiduciary responsibility to generate ROI for their investors. Perhaps the anger of Democrats at Goldman comes from the fact that Goldman (and other private sector companies) actually create something other than havoc and impediments to success. Congress should try reading Atlas Shrugged and take a piece of advice from John Galt– "Get the hell out of the way."

      americangreatness.org

    14. Jimiguana, florida says:

      If the politicians in Washington wouldn't bring up the role of Fannie and Freddie in the financial crisis, why didn't the people at Goldman who were being grilled unmercifully bring it up?

    15. C.Adli,NV. says:

      Well written.I wish you had written a little more of the history and facts of the matter so the public will be aware of it.The politicians are trying to cover their foot prints.

    16. Therese Kelly El Caj says:

      I`d like to grill Dodd,Frank,etal about the wrongs they have done with Fanny Mae and Freddie Mac.They seem to think they are the answer to everything,and they are the reason everything is going so wrong.

    17. James A says:

      The drinking water in D.C. must be contaminated because the inside the Beltway crowd, politicians, MS journalists and others of Left or Marxist mind, simply do not understand how the world works or how a growing majority of the American people think.

      We are fed up with the Feds. Arizona is leading the way to expose the underbelly of the beast. Goldman Sachs left the Democrats on the floor. And the Dems do not know they are decked with a right to the jaw and an upper cut to the body.

      Longdrycreek Ranch

      Texas Panhandle

    18. Richie Naples says:

      Its amazing how congress just comes up with anything in a bill just to satisfy what

      ever the situation. When some one opposes it they make it sound like the world

      is going to end if they do not pass a poor bill. They just live in a different world they

      didn't try and get a loan or buy food lately etc.

    19. Judy Fraser, Califor says:

      Because Heritage is highly respected, I would like to see more written about the relationship of the Executive Branch, the Energy sector, Cap and Trade, Generation Investment Management, Goldman Sachs and its investments in "Trading and Capital Markets," and CO2 and Climate Warming. Many people have much riding on legislation coming out of Congress in the near future. The public should have ALL of the facts.

    20. susan neal, Irving t says:

      I would love to grill Dodd and Frank and force them to testify under oath as to their part in the looting of Fannie and Freddie; they both lied about the housing bubble and continue today to deny they did anything wrong; they have never been held accountable for the lies they repeated over and over right until Fa and Fr were taken over; why are Fa and Fr not mentioned in the dodd bill? I know the answer to this one; it's because the democrats would not be able to use them as slush funds like they did in the past;I am certainly not a fan of gov't sachs, however, if there is blame then a lot of it needs to be dropped at the feet of government because government involvement in the housing market led to this disaster; how on earth can this same gov't with the same dems in control of the finance committees in the senate and House fix the problem when they are the problem! Putting dodd and frank back in charge of the housing and finance of our country is like putting the fox in charge of the hen house; it's not if the fox is going to kill the chicken; it's the matter of when!; I believe Janet Reno and bill clinton also used the force of the law they enacted to force banks to do the sub-primes or face stiff penalties and ridicule; franklin raines ripped off Fannie for 90 mil in just five years by cooking the books yet he has never been charged or forced to testify about his unethical practices; maxine waters commended him for the great job he was doing; the problem was that the great job he was doing was destroying our economy and allowing the collapse of 2 huge mortage giants by racking in the dough off the backs of the American Taxpayer; notice that Mr. Levin is totally silent about the government's role in the destruction of the housing market and the continuing bailouts paid for again by the taxpayer and by home owners who pay their mortgages in good faith year after year; when I think that Mr.Levin in an elected senator by the people in Michigan and he is the best they can come up with, no wonder almost 78% of The American People do not trust this big, fat, out-of-control Spending Monopoly Party in power; the dems have not shown us any signs that they are going to put our fiscal house in order any time soon and that thought alone should send a large majority of voters to the polls in November; this one party cram down in your face dictatorship must be stopped or we are going to lose our beloved contry and our great way of life; it is not the revenues; it is the spending, stupid! Grilling goldman sachs for the past mistakes will not help or change the results or the damage to the economy; it will not create jobs or grow our economy, however, continuing out-of-control spending is going to destroy opportunity and job creation and lower the standard of life for the middle class if the pro(pelosi, reid obama) is not stopped now and forevermore; if the dems want to point the finger of blame, then they need look no further than in the mirror; their arrogance, condescending and disdainful behavior that is fiscally irresponsible and dangerous and their passage of yet another huge government entitlement program as obamacare while Social security, medicare and medicaid are already unsustainable and bankrupt, is a telling tale of what is to come if obamacare is not defunded and repealed; it will lead to rationing and to inflated insurance premiums that already exist now; how on earth can adding 32 mil more people on the hc roll while not increasing the number of doctors, nurses or hospitals; then having a speaker of the House tell us that they must pass the bill first to see what's in it all the time knowing it would increase hc premiums for the very people promised it would not hurt; The American People need the truth and we need our representatives to be honest and have integrity above all when looking us in the face; we are sick of lying politicians that are greasing their palms with wall street money while trashing capitalism and companies that make a profit, yet do not see fit to return aall contributions or monies from sources like bailed out firms like government sachs and others who are in bed with obama and all of the democrats; if the dodd bill is so good. why does goldman sachs like it? Perhaps it is a continual bailout plan for the companies that are buddies with barry and friends?

    21. Bonnie says:

      Goldman has let Congress use them as a pawn to pass this legislation. The ties with Goldman go deep into the Obama Administration. Look up CCX (Chicago Climate Exchange) a mimi version of the Cap and Trade bill that Obama wants to ram through Congress and see just how involved they are. Cap and Trade is what they have their eye on and puts Goldman in position to make tons of money

    22. Lloyd Scallan - New says:

      Again, it's all smoke and mirrors. These Dems "appear" to be beating up on

      Goldman-Sachs in front of the tv cameras. Yet, behind the cameras they're cutting deals. This is all, as you say a "kabuki dance". They are putting on a show to again fool the American people. The Dems and the left-wing media will never allow the truth about who and why this disaster took place, or what is taking place today that involves Goldman and Obama. To better understand this, everyone should look at a company named Chicago Carbon Exchange (CCX) to learn just how much Obama, Gore, and Goldman Sechs are all tied together in this plot.

    23. Scott Johnson- Atlan says:

      What I can't understand is why no one is calling attention to the governmental failures that helped lead to the crisis. Why is this not being brought up at all? While GS is not blameless, what about the culpability of our government officials?

    24. Richard Bolyard, Lou says:

      Look out, This is a smoke screen, the other hand (Congress) is voting tommorow on legislation that would allow Puerto Rico to become a state (and then some), although its non binding now, just start reading between the lines. Goldman isn't going anywhere but our liberties are (by design) and it wont take much tweeking to make huge changes and add a tremendous number of new voters (and a star) for the progressive plan to move forward. I understand there are some 58 republicans that have co-sponsored this bill and I bet most if not all have no idea that in reality they are selling another piece of the Republic down the river.

      What an evil web they weave.

    25. John Lindsey, Winter says:

      Enough of the politicians running the economy. These guys can't even control their own budgets and spending. It is time the Senators and Representatives were all brought up on charges for failing in the primary Constitutionally required duties. We the people deserve better of elected leaders.

    26. Normca says:

      As much as some would rather not see George Bush in print for a long time; it was he and McCain that tried to implement controls on Fannie and Freddie, but as this article shows the two culprits plus Maxine Waters chastised them. Franklin Raines, of a former administration walked off with millions. Of course Goldman is in favor of his buddies legislation [democrats]; it was written for him and the other too big too fail entities [if one gave to Obama's campaign]. I hope that everyone who does not keep up with these daily attacks on our way of live remembers immigration, health insurance, this financial debacle, GM, the Chrysler bond holders, the slap on America's long time allies, the apology tour, Air Force One over NY city and on and on when November finally arrives. This is just another O show to keep the 20% in line.

    27. glen tomko says:

      what will be the great american wake up call…big government equals BIG PROBLEMS

    28. Peter, NY says:

      It has been a while since I have wasted most of a day on CSPAN3. There is only so much punishment a man can take, but yesterday I took one for the team.

      The Senate hearing was a virtual replay of the famous "Rope a Dope" strategy successfully employed by Muhammad Ali against George Forman in Zaire.

      Seven of Goldman's stone cold best, heavily lawyered up and tight lipped, smoothly stonewalled against a flurry of weak haymakers launched by such noted intellectual lightweights such as Carl "The Bartender" Levin (D) and Susan "Why am I here?" Collins (R?).

      John "The Maverick" McCain (R?) did a very passable imitation of BOTH the Crypt Keeper and Captain Reynaud when he expressed some surprise that gambling was going on at the Goldman Sachs Casino and Day Spa.

      Someone named Ted Kaufman (D?) pretended to be a Senator from Delaware and Dr. Tom Coburn (R) attempted to provide comic relief by asking a few semi-intelligent questions.

      The stoic Goldman crew, led by Lloyd "I used to sell peanuts at Yankee Stadium" Blankfein, could hardly contain their stunned amazement at the raw stupidity and complete ignorance of financial matters continually displayed by our duly elected buffoons.

      To tell the truth I was starting to feel sympathy for Lloyd, but then I came back to my senses.

      The bottom line Goldman Sachs position, was that their crooked racket is legit, and that some kneecaps will be needing reconstruction, if any political nitwits actually get near their cash flow.

      The bottom line Senate position, was that Wall Street's avarice is an easy topic to demagogue in an election year and that Obama plans to take full advantage of his buddies at Goldman Sachs by pretending to throw them under the bus.

      Our bottom line, no worries all around, after a little Kabuki theater, the business of screwing the taxpayers and investors will be back to normal right after the election.

    29. Gene, Pittsburgh says:

      Anybody with a few brain cells still working knows that the sad economy that we are in is totally created by our and other governments. This being said, right now, any nation has the opportunity to leap out of this recession and lead the way for the rest of the world by simply cutting taxes and unnecessary regulation. The Reagan administration did and it can be done again. It is just a matter of the American people to have the will to pay attention and put the right people in leadership. Forget about what our political leaders are saying at any given moment and simply look at their voting record and/or how they have decided in the past and wallah you have the truth of a given man/woman. Vote on past truth not on empty promises. It's not that hard.

      Gene

    30. Fox Hunter, Californ says:

      This administration is so in bed with Goldman Sachs that it is almost incestous. Watch for public censure, which will be a sop to the public and a continuation of the attack on "the rich" but the real villians; the Community Reinvestment Act, which should be repealed; Fannie Mae and Freddie Mac with their protsctors Frank and Dodd go unscathed; (monkey) business as usual.

    31. Bob Veigel, Arlingto says:

      Congress, the largest group of incompetents ever assembled, is always looking for scapegoats to divert attention away from their many and very disastrous failures. Such as: Social Security, Medicare, Prescription Drugs, Establishing the Fed, A huge national debt, budgets deficits causing inflation and the devaluation of people's earnings and savings, The education department, The energy department, Fanny and Freddy and the list goes on and on. Why would anyone expect some 'new miracle' dealing with so-called revised rules and regulations targeting the financial arena. Most of those in Congress have no experience with balance sheets, profit and loss statements, assets and liablilities, net worth, 1040's, payrolls and on and on. The one item they have much experience and knowledge with is how to spend 'others people's money'. At this they are truly experts. And with disastrous results.

    32. Fox Hunter, Californ says:

      that should be …withh their protectors Frank and Dodd …

    33. toledofan says:

      Great job as usual and just to reiterate; I think that because Fannie and Freddie are out of the mix, it clearly shows, at least to me, that the guys on the banking Committee, back in 2005, had no clue of what they were doing. It's obvious that the loans made by Fannie and Freddie, because of pressure from the guys like Dodd, Franks, Pelosi, etc., created the mess and when people couldn't majke the payments the roof fell off the housing market. It was the first domino to fall. Now the same people that got us into the mess want to try and fix it with, well, more of the same mismanagement. Again, where was the SEC, the banking committee, the commerce department? The inquisition, yesterday, was an example of arrogance and ignorance all on the same stage.

    34. Leith Wood Richmond, says:

      Thank you from the bottom of my heart for printing the truth about the farce taking place with Goldman yesterday. Not one word about Fannie and Freddie or Dodd and Franks. That should have been reported in every paper and all over TV. The government refuses to police themselves or listen to the American people,so be prepared to lose your jobs in November. I can't wait for justice. Please keep spreading this fine article wherever you can. I'm sad and surprised you have received so few responses. Wake up America or we're going to lose our beloved country.

    35. Rosina Rugolo Las Ve says:

      Dear Heritage, I just wanted to thank you for the email update I receive every day.

      It is invaluable to keep me informed about what "the smart people" are thinking.

      As you speak about polls, I wish someone would poll me. I am very conservative

      and would love it if someone would ask my opinion.

      God Bless and thanks for being there. Regards from Las Vegas, Rosina

    36. Drew Page, IL says:

      Of course I'm in favor of regulation of Wall Street practices, and of banking practices and of business practices for the protection of the citizens against fraud and deceptive practices. But such regulations should come from independent regulatory agencies. Where was the SEC when Wall Street was bundling up toxic mortgages and selling them to an unsuspecting public as mortgaged backed "securities"? Where were the federal regulators when the clinton administration placed quotes on banks to give mortgage loans to people who were poor lending risks? Where were federal regulators when Fannie and Freddie were backing up mortgages that banks were forced to make to people who had no ability to repay?

      But who protects us from the fraud and deceptive practices perpetrated on the citizenry by our President and our Congress? Where is the promised "transparency" in legislation contained in 3,000 of govwernment double-speak that our Congress, and even our President, doesn't have the time or inclination to read before passing such into law? Oh, I know. We just have to wait until the bills are passed to find out what's in them.

      I would love to have the chance to put a series of questions to our Senators and Representatives in the same detail and with the same ferocity with which they grilled the Wall Street execs. But maybe Joe Klein would think that to be seditious.

    37. Turner, Massachusett says:

      pssst, Senators, Goldman might be short your US Treasury bonds. Better get to doing what you were elected to do.

    38. Duncan Druhl says:

      The real theatre is framed in the question of how Goldman can be so baaaaad in the administration's terms while that very administration is riddled with….guess what, ex-Goldman employees. Is there not something of the chickens hiring Foxes Inc. for protection of the coop?

      But of course, coming from Chicago, there can be no inferences of corruption in this administration, right? Many of us well remember Hizzoner noting that "the police are there not to create disorder, but to preserve disorder." That kind of clarity of purpose is exactly what we expect from Chicago politicians. However, the words may not mean what you think they mean, anymore.

    39. Blair, Franconia, NH says:

      Obama loves to blame the "fat cats" on Wall Street. He loves to tell the American people that the Republicans are the "party of Wall Street." LOL, right. The facts are

      just the opposite. It's the Democrats, NOT the Republicans, who are the real party of

      Wall Street. Obama got almost a million dollars from Goldman Sachs and other Wall

      Street firms. The "fat cats" of Wall Street gave more money to Democrats than Republicans. The Republicans the party of Wall Street? LOL, right.

    40. Andy, Davie FL says:

      Pure Alinsky; scapegoat the GOP and GS, and deflect away from the real perps.

    41. Dennis Social Circle says:

      The dems and obama will do anythingn to get votes. What would they do if these people simply told the hearing committee to stuff it and walked out. These people have already determined the guilt of these people, not according to law, innocent untill proven guilty. The past administrations on the dems side are the key to what ahppened on Wall Street and the banks. Executicve oders were issued to make loans to people that could not afford to pay them. The constitutrion does not guarantee the right to own a home, laws do not guarantee them either.

      We the people have to wake up and smell the roses, the tax payer can not afford to pay all the bills for the handouts the "guvnment" wants to fund, at some point we ahve to take responsibilty for our actions and the suffer the fate for the bad ones.

      VOTE IN 2010, PUT THESE PEOPLE OUT AND DEMAND TERM LIMITS ON ALL!!!

    42. Mike, Chicago says:

      How hypocritical it is for Obama to criticize Goldman Sachs and other Wall Street firms when they financed his election.

    43. Dave, Provo, UT says:

      Great article and better comments from the readers. You give me hope that come November we will "Sweep the bums out". I ask every candidate for local, state, and national office to explain what fiscal responsibility means and if they are on target I ask for their pledge to stick to it and if they won't give me one I tell them I will work for their defeat. We, the citizens, must stay informed and hold those we elect accountable. We must take some of the blame for what has happened because we did not take enough interest and action. Freedom has to be won every day by vigilant citizens or business and government will take advantage of us. An old Scottish proverb says, "God loves everyone but He only trusts a few."

    44. Ben C. Ann Arbor, MI says:

      If the above accounting of the financial crisis had been submitted to Hollywood as a script for TV series it would have been placed in the "fiction" catagory – no one would believe it to be true. Corruption appears to be alive and well and deep.

    45. Fred Thompson says:

      The Senate Subcommittee on Investigations showed an apalling lack of integrity and financial sophistication during the grilling of Goldman Sachs on Tuesday. If Goldman has hefty position in mortgage related securities on its books, the securities are probably being vetted for sale to institutional investors. As a market maker Goldman should not gamble with its capital, so the position would be hedged. Being hedged means that if the market for that security class declines, the hedge will gain value thereby negating any loss. So the Senators call this betting against (shorting) the security that Goldman is trying to sell? Well, hell yes! The management at Goldman Sachs have nothing to be ashamed of. They were running their firm in a risk-adverse manner.

      The Senate hearings must be rigged to gain support for the SEC suit against Goldman. Instead, the hearings convinced me that the incompetent Senators should be removed from office and run out of town on a rail.

    46. Steve Bocklage, Empo says:

      Thank you for bringing forth the real truth about the financial crisis. Collectively to blame for the finacial meltdown are Rep. Barney Frank, Sen.Dodd, and other elected officials in the Fed Gov't who looked the other way; lack of oversight at the SEC; the mismanagement by the heads of Fannie Mae and Freddie Mac; those buying homes who could not afford them; speculation using hedge funds; Wall Street firms and banks; speculative investors, etc.. Until all involved, including the American people, wise up and become honest and truthful about this, no amount of legislation, money, and scapegoatting will solve the problem.

    47. Rob M says:

      It is not an either or situation. Freddie Mac, Fannie Mae, Clinton and Bush housing policies, derivatives, and greed all played a part in bringing down the economy. Obviously we did not learn from the savings and loan debacle that oversight and proper/effective regulation must play a part in the financial markets.

      The notion that two parties should be able to engage in mutually beneficial contracts without interference from the government is simply baseless because it assumes that the rights of others outside the contract will not be negatively impacted by the contract. Not true in the modern age! The contracts between mortgage companies and individuals did negatively impact others that had nothing to do with the housing market because when the economy went down it

      created a lot of collateral damage (job loss etc).

    48. Pingback: Surrogate Senatorial Foils | Clarion Advisory

    49. Barb, New York says:

      Create the bad guys..go after them with legislation and regulations that will pander the the people. Covering the greater corruption and the power grab. Nothing will ever happen to GS. We got it. We've gotten it for awhile now. LETS STOP IT!!!! Vote them ALL out of there. Thanks Heritage for all you do.

    50. bigdave, ocala fl says:

      People like Ken Jarvis and the rest of the boneheaded morons who make up the demorat party REFUSE to acknowledge the REAL CAUSE of the financial meltdown in this country:Bill Clinton, Janet Reno, Robert Rubin, Barney Frank, Franklin Raines, Chris Dodd, Jamie Gorelick and the rest of theIR democrat henchmen who FORCED BANKS into approving loans for PEOPLE WHO COULD NOT PAY BACK THE LOANS!!!! When exactly is the PUBLIC AT LARGE going to be made aware of this BLATANT CRIMINAL ACTIVITY and the attendent FLEECING of Fannie and Freddie by these same people to the tune of MILLIONS of TAXPAYER DOLLARS?! It is now well documented that the Mainstream Media, ABC, NBC, CBS and CNN are NO LONGER INVESTIGATIVE JOURNALISTS, instead we have a HORDE OF LIARS, SPINNERS, DEVIANT RIOT MONGERS, DENIERS OF THE TRUTH, PROPONENTS OF MADE-UP LIES AND VIRTUAL MOUTHPIECES FOR THIS ANTI-AMERICAN AND CORRUPT-IN-EVERY WAY ADMINISTRATION WHICH HAS AS THEIR GOAL: CONTOL OF EVERY AMERICAN THROUGH FINANCIAL CATASTROPHE INDUCED BY THE ADMINISTRATORS! THEY HAVE DONE IT TO BLACK AMERICA FOR YEARS NOW AND NO ONE SAYS ANYTHING!!! LETS GO HERITAGE, SOMEONE MUST STAND UP FOR AMERICA!!

    51. Narukami, USA says:

      This hearing is not kabuki. Roman Farce perhaps, but not kabuki.

    52. John Seaman Peoria, says:

      Goldman is not being chastised just for betting against the housing bubble, but rather for helping to create the bubble then betting against their own creation. They were playing both sides of the game playing us all for suckers.

    53. Kerry S. , Omaha says:

      The current "administration" at Goldman (up to and including Blankenfein) are quite likely aware that they are being used as a sacrificial lamb. Just remember, the secret to all of this is to follow the dollar. The only thing that surprises me is that nobody in congress has the guts to propose a "special prosecutor" to look

      into relationships between Raines, Gorelick, Dodd, Frank, Schumer and undoubtedly a few republicans, for that matter.

      Just rememeber, Goldman was bailed out by AIG at a whopping 100% for their losses and the money AIG used to do it was YOUR money. Maybe we should radiolabel transactions that come from taxpayers and see where the money winds up. Oh, and P.S. when is the "socialist in chief" planning to return the $1 million in campaign funds he got from Goldman? In the past world where a few "investigative journalists" still existed someone would be all over this. I wonder how much the regime pays today's so called "journalists" to keep silent?

      Soros and Buffet have stink all over them on these synthetic CDO's. The progressives have plans to create a world currency and economy and they figure that the time is NOW!

    54. Lee White Tanks AZ says:

      Only some combination of Lewis, Dos Passos, Orwell and Anthony could begin to look like present day WDC. Through the Looking Glass alone doesn’t even begin to describe the utter foolishness and absurdities that absorb our legislators of today.

      Hurry up Nov 2010, before the buffoons reek more havoc on the public pursue and further insult the public intelligence.
      PC is Thought Control

    55. Lee White Tanks AZ says:

      oops purse

    56. Carv'n. Indy says:

      The Dems want and need to hang all the financial problems on someone else. They continue to blow smoke in the face of America to try to shed the blame and distract people from the truth. The audacious cover-up of their own failure is exceeded only by their ignorance and arrogance.

      It is going to be fun to watch them lie and spew their hatred for America and our values to their own demise. VOTE THE SOBs out!

    57. Nancy, Wilmington, N says:

      Whenever I see Chris Dodd pontificating on TV, my reflexive thought is, "Why is he not in jail?' He exemplifies the rot and degeneracy pervading American governance and the slavish complicity of the leftist media that amplifies his voice and anoints him with credibility. It's almost painful to be aware and informed in the theatre of the absurd that our sadly diminished country has become. A friend recently said, "I don't think God is protecting America anymore." One wonders.

    58. Dennis Lamb Scottsda says:

      There is plenty of blame to go around. A must read is Michael Lewis' "The Big Short". The fraud is like Enron on steroids. Standard and Poor and Moody's were fed sh– and ate it up producing packages of junk rated AAA.

      At the root is Barney and Chris forcing credit to people who should have been renting.

    59. MichaelScottLawrence says:

      The Colliers, now deceased, wrote years ago about their observations made after running a door-2-door campaign against the entrenched Florida rep, to learn of massive vote fraud so institutionalized it could not be UN-fixed! While they lived, they devoted themselves to expose's of vote fraud, with their book, Votescam, and informing whom they might that once agin, we had delat faithfully and honorably, only to be scammed, and re-scammed !! Can anyone seriously belive that this situation has anywhere been bettered in the intervening 15 or so years? Here in Tulsa, we just now have a true Christian patriot, who is intent on exposing how some of the many divisions Scriptures warned us of are still being foisted upon us today: give Eddie Huff an ear, and summon his restimonies to your audiences!! "Liberation Theology, NO matter what "color" it is described by, is another smoke'n'mirrors trick of the cominternationale, and as Alex Solzenhitsen told us, if we really do resist, at the most basic level, and believe for each other that such is for the right causes, this machine, like Stalin's insatiable one of 60 years ago. will die a natural death, as that onw should have! Pray for wisdom, not only for ourselves but also for our military and police…too many are returning from overseasservice, aghast at what is happening, while too many in local uniforms see booty as all the justification they need to betray us and each other! We truly need deliverance, as never before! God, bless America, and America? Bless God !!! Tu hermano para siempre, MLM

    60. Jack Metcalf Vernal, says:

      Any of you notice the finger Obama is pointing at Goldman Sachs has 3 fingers pointing straight back at him and his cronies in the Congress who as we all know caused the problem in the first place with the thug tactics of Acorn, Barney Frank et al. When George Bush called for an investigation you notice how the Washington DC political hacks did everything possible to silence the objectors and point the finger away from the real problems.

      Guess what, November 2010 and 2012 will be here sooner than they think and we, (conservatives, Tea Partiers including all Independents), can band together and throw out every single one of these political incompetents.

      No more BIG GOVERNMENT solutions period.!!!!!

      Let the next CONSERVATIVE Congress and Administration rescind and unwind all the connivances that have taken place under these socialist/leftswinging/liberals.

    61. Jack Metcalf Vernal, says:

      Let me go so far as to suggest, after the Conservatives take back the Congress in both houses November 2010, start off by Defunding Obamacare. Next call for an immediate freeze on all government hiring, followed by an immediate 5% cut in federal personnel within 90 days after taking office and freeze all government employee salaries forever.

      Next call for another 5% reduction in federal employees by the end of 2011, and each year thereafter. If Obama interferes, worst case we wait until January 1, 2013. So what? This is the only way we can save our economy and the sinking dollar. Otherwise it is Katy-bar-the-door and America is dead in the water.

      We have to shrink government until it is out of our lives. Shut down the department of un-education and the IRS. Let these people go get real jobs.

      Let those in our society who have 'sold out' by seeking the government jobs, seek employment back in the private sector. Let them get jobs that create real goods and services wanted by consumers. Big Government is nothing but a Big Cancer in a capitalistic system that has never worked and never will. Socialism and Communism are dead and can never compete unless we Americans roll over. And shame on those who 'sold out'. Who do they think is paying their salaries?

      At the same time call for Income tax cuts across the board for all individuals and corporations and scale the rates to 10% flat never to be raised again and see America Soar Like An Eagle. You will see creativity and entrepreneurship soar like never before. And don't worry about the poor unemployed federal employees, they will get sucked up by all the job creation in the private sector.

    62. Zack says:

      hmmmmm…..less then 15% of all lenders from 1977-2006 were subject to cra or any other government regulation. That leaves 85% of the entire housing market share untouched by the federal government. Wall street had NO government regulation or oversight. Credit agencies and banks had NO government regulation or oversight. Hey guys, seriously, please do some legislative and economic research.

      "At the root is Barney and Chris forcing credit to people who should have been renting"

      -such a broad statement. so so typical. When did one finance committe chair have power over republicans in the house, senate, administration and treasury secretary for 12 years. Does Barney Frank have magical powers? Did republicans pass a single bill for housing or financial reform for 12 years…one bill….anyone….anyone…bueller?

      -103-109th congres….NOTHING, NOTHING, NOTHING!

      -let the personal attacks begin. show your class!

    63. Zack says:

      For all 55 comments left so far, try diong just a little research.

      I love me some bullet points….

      -From 1995 to 2006 when the Republicans were in charge of Congress no bill to reform the GSEs passed Congress.

      -Republicans in Congress did nothing when President Bush pushed Fannie and Freddie’s affordable housing goals to unsustainable levels.

      -While in the majority, Republicans never passed legislation to restrict subprime lending. Rep. Bachus actually once believed in restricting subprime lending, even negotiating and compromising with Democrats in 2007, but he did not support the 2009 effort.

      -After only three months in the majority, Democrats on the House Financial Services Committee produced a tough GSE reform bill that the Bush administration supported. The bill passed the House within five months of Democrats taking control. Rep. Bachus voted against the bill.

      House Democrats also pushed to include Fannie and Freddie reform in the 2008 stimulus bill, but their efforts were rejected by the Bush Administration. The GSE reform bill stalled in the Senate due to the narrow partisan divide but ultimately passed in July 2008.

      -In 2004, Democrats, while in the minority, objected to President Bush pushing Fannie and Freddie’s affordable housing goals. [“Fannie, Freddie to Suffer under New Rule, Frank Says,” Bloomberg, June 17, 2004]

      -In 2005, House Democrats worked with then-Financial Services Committee Chairman Mike Oxley to pass the only Fannie and Freddie reform bill to pass the House. In fact, every Democrat voted for the bill in committee. Although some Democrats objected to unilateral changes when the bill reached the floor, the bill passed the House with overwhelming bipartisan support.

      -Senate Democrats then offered the Oxley bill in the Senate. However, the bill died because the Bush administration and Senate Republicans were opposed.

      -With Mel Watt and Brad Miller taking the lead starting in 2004, House Democrats pressed Republicans to adopt subprime lending rules in light of Federal Reserve Chairman Alan Greenspan’s refusal to use the HOEPA authority he had been given in 1994.

      -The House of Representatives in 2007, and again in 2009, passed tough measures designed to protect consumers from predatory lenders and prohibit the type of “liar loans” that were so prevalent in the years leading up to President Bush’s homeownership failures.

      -After House Democrats began working on anti-predatory lending legislation, the Federal Reserve in 2007 finally issued rules to regulate subprime lending pursuant to the 1994 Home Owners Equity Protection Act.

      uh oh….you got another one Heritage…!

    64. Zack says:

      hmmm….must be a different moderator…?

    65. Scott Boise ID says:

      Nancy from Wilmington – I love your style! Perfectly said. I'd add that our media ought more properly be referred to as "Pravda", so propagandist have they become shoring up this "President" of ours. Really disgraceful.

    66. Billie says:

      Nancy, I appreciate what you said except one thing. Please don't lose faith in God. He gave all mankind their freedom of choice and ability to make them without interfering. Obama and congress included. What we have is the ability to fight them and pray to God for strength and wisdom. God did create everyone good and all are born individually and free. Because of the freedom he gave us, some used their freedom to choose another path. Please keep in mind, we pray, He answers. One way or another, He answers…

    67. Shelley Sorensen says:

      If I had a buck for every time I came here… Amazing read!

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