Goldman Sachs clients were gambling but they had a sure thing

Boynton Beach, FL

Goldman Sachs was having their clients gambling with their money when they took no risk and only had a win win situation for them selfs.

Is the stock market the biggest roulette wheel in America?

Was Goldman Sachs pushing individual products into numerous borrowing tools to effect huge fee income and passing risk to 3rd parties with no one being concerned with the inevitable day of reckoning.With Poor or neglectful oversight by industry and government.

U.S. Sen. Claire “Bear” McCaskill said “You are the bookie. You are the house. You have less oversight and less regulation … than a pit boss in Las Vegas,” she said. Later, she added, “You think you’re so smart. Any street gambler would never place a bet with a bookie or with the house with the record that is revealed in the documents that this committee has gathered”

Boy was she right.

What was the difference buying this product from Goldman Sachs or buying a junk bond ? At least you knew when you bought a junk bond it was a junk bond !.

You might have had a better chance to make money if you bought a lottery ticket

The systemic problem of gambling effected Wall Street, Banking, Government and Public betting on the come. By placing bets in the mortgage area, credit card business, hedge funds, products that will recover if mistakes or poor judgment without a “what-if” analysis brings disaster.

Lets look at the things that have gone on in the last few years —–

Allowing greed driven euphoria to encourage individuals to bet on the come that a 100 -125% loan to value on their primary residence will be mitigated by nonstop increases in real estate value.

Encouraging increases in credit card debt to have today and pay for in tomorrow dollars at the interest rate as high as 20% or more. Credit agencies lack of analysis and true valuations of assets and liabilities moved to back burner so fat fees could be earned. Governments usual inept involvement forgetting the debacle of the early 1980’s with the savings and loans associations.

Corporate salaries and bonuses not realistic with performance and accountability .

All we hear today are comments about various companies “bets”, including Wall Street, Main Street, all with negative results.Lets also look at day traders who are betting on the next buy or sale of a stock to make themselves rich; but in the end, they are just like poker players, betting on the next turn of the card. Customers are allowed to buy stocks with money that they don’t necessarily have, by buying on “margin”.

When are we going to realize that the underlying problem of the current economic crisis is greed? Greed that fueled the gambling to achieve the dream of businesses and individuals accumulating wealth without the thought of accountability and responsibility?

I run a help line for compulsive gamblers


And in the last year, many of the calls are from gamblers who have been gambling in the financial markets. Some of them are stock brokers / executives, working in the financial field.

Arnie Wexler
Arnie & Sheila Wexler Associates
Boynton Beach, FL

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