This headline from the N.Y. Daily Post today:

SACHS OF S#!T!

Actually, I enjoyed seeing the Goldman Sachs execs get hammered yesterday. Can't believe I was rooting for Carl Levin. Dogs and cats sleeping together. I don't really know if Goldman did anything fraudulent when they first created and sold the subject security ... but it doesn't take a lot of brain-power to figure out that once they clearly understood that the investment was a pile of s#!t they should have stopped selling it to investors. Then there's this ... Goldman is actually supporting The Community Organizer's so-called financial reform plan. Why? Because it's a bailout deal, that's why. If the financial regulators in Washington are ready to bail out Wall Street firms who screw up, doesn't that encourage these firms to take unrealistic financial risks? We will have a system that protects Wall Street while the investors are pretty much on their own!

No --- I'm not for unfettered free markets. There are laws against fraud, and those laws should be enforced vigorously. Let's see ... back to law school ... what constitutes fraudulent activity? When you make a misrepresentation of fact to some individual with a goal of causing that individual to act against their own self-interest, that would be fraud. If you sell an investment to someone, telling them that this investment is sound; and you know at the time that the investment is actually a pile of crap ... and the investor acts on your information to their detriment ... you've committed a fraud.

The problem here is that the power-hungry politicos in Washington will use this Goldman Sachs incident to further increase their power - to tighten their grip on Wall Street. This will be a major argument in favor of their regulatory make-over, all the while leaving Fannie and Freddie alone.

Warning: bad language in video.