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TMFAleph1 (95.13)

The Blame Game: Goldman vs. AIG

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July 02, 2010 – Comments (3) | RELATED TICKERS: AIG , GS , BAC

My thoughts on the matter. I welcome all respectful/ informed feedback.

Alex Dumortier

3 Comments – Post Your Own

#1) On July 04, 2010 at 11:51 PM, alberta911 (74.66) wrote:

Are you almost finished your book?  I thought you were writing a book?

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Outrage about this surfaced back in Mid March of 2009 when this 100% on the dollar became public…

Over a year later... AIG modus operandi and business model is not sustainable......hence I expect the blame game is really on the Federal prosecutor's for hiding how insolvent AIG is.

The US banking industry has never lacked regulations or laws.

The failure of  your Federal government...specifically Congress has never ensured their laws and regulations were implemented and enforced.

My former boss Leon Cooperman and Charlie Munger have stated to anyone that would listen the Goldman culture has problems...

I think your knowledge and insight is excellent and current.  Keep up the good research.

I enjoy reading your posts...but will hold you to account when I believe you know better

 

tmfmarathonman 5/14/09 2:52 PM

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That's nonsense: there is no comparison between Goldman Sachs and Enron. Goldman is the preeminent firm in an industry that is experiencing change and turmoil; the industry will survive and Goldman will thrive. Warren Buffett would not invest $5 billion in a firm that was another Enron, no matter who, how many and how powerful its "friends" are.

By the way, what is the 'Security Exchange Department'? Do you mean the U.S. Securities and Exchange Commission (SEC)?

Reply: alberta911 5/14/09 6:59 PM

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No comparison?
Wow Enron was a preeminent firm in an industry that was experiencing change and turmoil.

Try Goldman Sachs and Enron deals were hatched in the back alleys of Wall Street and escaped the scrutiny of anyone making an independent assessment of their risk.

Do you mean the U.S. Securities and Exchange Commission (SEC)?
No I mean The United States Security Exchange Non Accountability Commission.

Warren Buffett would not invest $5 billion in a firm that was another Enron, no matter who, how many and how powerful its "friends" are.
You must be too young to remember one of the most important day in Warren Buffett's life
http://chinese-school.netfirms.com/Warren-Buffett-Salomon.html

Interesting while you praise Goldman Sachs your $5billion dollar investor Charlie Munger just stated
"The culture of Goldman Sachs as a partnership was morally superior and better for the surrounding
civilization than the culture that came after it went public.”
http://www.shadowtraders.com/futuresblog/?p=663

When you know better you will do better...

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#2) On July 05, 2010 at 10:20 AM, TMFAleph1 (95.13) wrote:

alberta911,

Thanks for your interest. It sounds like we agree on a number of things, but I'm not ready to put Goldman on the same level as Enron. A couple of comments:

 

Warren Buffett would not invest $5 billion in a firm that was another Enron, no matter who, how many and how powerful its "friends" are.

You must be too young to remember one of the most important day in Warren Buffett's life
http://chinese-school.netfirms.com/Warren-Buffett-Salomon.html

No, I remember this episode very well. Here's an article I wrote that draws on the comparison: What Warren Didn't Tell Goldmans CEO.

 

Interesting while you praise Goldman Sachs your $5billion dollar investor Charlie Munger just stated

"The culture of Goldman Sachs as a partnership was morally superior and better for the surrounding
civilization than the culture that came after it went public.”
http://www.shadowtraders.com/futuresblog/?p=663

I am in total agreement with Munger here. In fact, I wrote an article that made this very point in July 2009: Goldman's Partnership is Bankrupt .

 

Best regards,

Alex Dumortier

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#3) On July 05, 2010 at 11:54 PM, alberta911 (74.66) wrote:

The comment I really want is...Where is your book you are writing.

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Why are we using Enron's Playbook to get us out of this mess??
1. Remove troublesome government regulation
2. Create a bubble
3. Short the bubble
4. Myth to Market Accounting
5. Counter parties
6. Derivatives
7. Cap and Tax
8. Become an adviser to Washington

Does Andy Fastow have an office at the SEC...or is he still in prison?

If I was a journalist he would be the interview I want... you should write him as he is a talker....

 

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