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Goldman Sachs: Wall Street's #1 Fraud-Factory

By now, anyone and everyone who pays the slightest attention to business news knows that Goldman Sachs is being sued by the SEC for deliberately and maliciously defrauding their own clients. This is enormous news, from a number of perspectives. I'll try to address these issues in a methodical manner.

To begin with, there is the simple, overwhelming shock of the SEC being the entity which is launching this law-suit. This is the same “regulator” who willfully ignored report after report of Bernie Madoff's multi-billion Ponzi-scheme – until the crescendo of the accusations against Madoff made further “stonewalling” impossible.

However, in this scenario, we are not talking about an action against a mere, lone, Wall Street “insider”. This is a law-suit against “Government Sachs”, whose “alumni” taint and disgrace virtually every important branch of the U.S. government. Thus, for the SEC to engage in such a law-suit, where the allegations (if proven) would more or less destroy the “reputation” of this company (and the endless flow of investor $billions), we can safely conclude that either the SEC has an “air-tight” case against Goldman Sachs or there was simply so much evidence bubbling to the surface that the SEC couldn't pretend to be “unaware” of these issues any longer.

Either way, this legal action represents a stunning reversal of the U.S. government's blatant servitude toward Goldman Sachs. Indeed, this law-suit comes less than two years after former Goldman Sachs CEO (and then-Treasury Secretary) Hank “Bazooka” Paulson funneled more than $10 billion of taxpayer money to pay-off the Goldman Sachs scam which it had perpetrated against AIG...

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