From 2001 through November 2009 (note the date -- a full year after Lehman) Goldman created financial instruments to hide European government debt, for example through currency trades or by pushing debt into the future. But not only did Goldman and other financial firms help and encourage Greece to take on more debt, they also brokered credit default swaps on Greece's debt-making income on bets that Greece would default. No doubt they also took positions as the financial conditions deteriorated-betting on default and driving up CDS spreads.
But it gets even worse: An article by the German newspaper, Handelsblatt, ("Die Fieberkurve der griechischen Schuldenkrise", Feb. 20, 2010) strongly indicates that AIG, everybody's favorite poster boy for financial deviancy, may have been the party which sold the credit default swaps on Greece (English translation here).
Generally, speaking, these CDSs lead to credit downgrades by ratings agencies, which drive spreads higher. In other words, Wall Street, led here by Goldman and AIG, helped to create the debt, then helped to create the hysteria about possible defaults. As CDS prices rise and Greece's credit rating collapses, the interest rate it must pay on bonds rises-fueling a death spiral because it cannot cut spending or raise taxes sufficiently to reduce its deficit.
Having been bailed out by the Obama Administration, Wall Street firms are already eyeing other victims (and for allowing these kinds of activities to continue, the US Treasury remains indirectly complicit, another good reason why one shouldn't expect any action coming out of Washington). Since the economic collapse is causing all Euronations to run larger budget deficits and at the same time is raising CDS prices and interest rates, it is easy to pick off nation after nation. This will not stop with Greece, so it is in the interest of Euroland to stop the vampires now.
With Washington unlikely to do anything to constrain Goldman, it looks like the European Union, which is launching a major audit, just might banish the bank From dealing in government debt. The problem is that CDS markets are essentially unregulated so such a ban will not prevent Wall Street From bringing down more countries-because they do not have to hold debt in order to bet against it using CDSs. These kinds of derivatives have already brought down an entire continent -- Asia -- in the late 1990s , and yet authorities are still standing by and basically doing nothing when CDSs are being used again to speculatively attack Euroland. The absence of sanctions last year, when we had a chance to deal with this problem once and for all, has simply induced even more outrageous and fundamentally anti-social behavior. It has pitted neighbor against neighbor -- with, for example, Germany and Greece lobbing insults at one another (Greece has requested reparations for WWII damages; Germany has complained about subsidizing what it perceives to be excessive social spending in Greece).
Of course, as far as Greece goes, the claim now is that these types of off balance sheet transactions in which Goldman and others engaged were not strictly "illegal" under EU law. But these are precisely the kinds of "shadow banking transactions" that almost brought down the global financial system 18 months ago. Literally a year after the Lehman bankruptcy -- MONTHS after Goldman itself was saved From total ruin, it was again engaging in these kinds of deals.
And it wasn't exactly a low-level functionary or "rogue trader" who was carrying out these transactions on behalf of Goldman. Gary Cohn is Lloyd "We're doing God's work" Blankfein's number 2 man. So it's hard to believe that St. Lloyd did not sanction the activities as well in advance of collecting his "modest" $9m bonus for last year's work.
Muslim Academy on 16 Sep 12Islam is a balanced religion. It believes in respecting all sects, all cultures and all civilizations. All laws relate to Islam are meant for Muslim benefits . It is true that in the recent years, Islam has become a victim of extremism. The purpose of Islam has never been to spread Islamophobia. Islamic ideas have been exploited to give them the shape of Islamophobia. Islam does not define a mosque and state as distinctive. A mosque is there, to provide a forum to the Muslim to unite and pray. The gesture is to promote congregational prayers, which is also an aspect of Christianity. Islam does not believe in forcing its concepts upon Non-Muslims. Unethical Jehad has never been an Islamic thought. It is just that some extremist groups are trying to manipulate Islam and use the Ideals to their benefit. Islam believes in respecting all religions. That is what the Holy Prophet (PBUH) taught the Muslims. Islam does not preach unkindness to any. May it be your enemy or slave. These are not the aspects of Jihad. A woman can legally have a physical relationship with her husband only. It is definitely no concept of Jihad. Islam believes in respecting a woman, not exploiting her dignity and respect. Islam does not allow illegal confiscation of property during Jihad. Islam does not promote destruction. Taxes does not mean degrading. Taxes are defined to establish a system and maintain a proper division of wealth. If Christian and jews had to pay Jiziah, Muslims had to pay Zakat .Brutality is not a custom of Islam. A Muslim derives so much contentment from Islamic values, that they do not need to run away from the religion. Anything , which drives a person from sanity is not liked in Islam. The reason being that all wrongs can be committed, when a person is drunk and is not in a normal state of mind. This is human nature, that we cannot drive contentment until we avenge someone for the bad they have done to us. However Islam prefers forgiveness. Sometimes a harsh punishment
