A government report suggests that "outside forces" triggered the 2008 financial meltdown

theweekmagazine:

So… it wasn’t our fault after all?

It turns out that the devastating 2008 financial collapse wasn’t caused by our over-leveraged borrowing and ballooning real estate prices, but rather “financial terrorism” from “outside sources,” at least according to a newly uncovered 2009 report commissioned by the U.S. Defense Department. Financial analyst Kevin Freeman, the Pentagon contractor who wrote the report, claims that coordinated financial attacks on the U.S. from unknown “financial enemies” turned a normal downturn into an economic catastrophe that drained $50 trillion from the global economy.

Oh, I’m pretty sure we know those “financial enemies”…

Goldman Facebook Pitch Or Nigerian Email Scam? : Planet Money : NPR

Goldman Sachs recently emailed wealthy clients who might be interested in investing in Facebook. The WSJ’s Deal Journal got a peek at the email — and noticed a a striking resemblance to the language in a Nigerian email scam.

Goldman’s message begins:

When you have a chance I wanted to find a time to discuss a highly confidential and time sensitive investment opportunity in a private company …

For confidentiality reasons, I am unable to tell you the name of the company unless you agree not to use such information other than in connection with your evaluation of the investment opportunity and to keep all information that we reveal to you strictly confidential.

And, for comparison, here’s a Nigerian email quoted by Deal Journal:

FIRST, I MUST SOLICIT YOUR STRICTEST CONFIDENCE IN THIS TRANSACTION. THIS IS BY VIRTUE OF ITS NATURE AS BEING UTTERLY CONFIDENTIAL AND ‘TOP SECRET’. I AM SURE AND HAVE CONFIDENCE OF YOUR ABILITY AND RELIABILITY TO PROSECUTE A TRANSACTION OF THIS GREAT MAGNITUDE INVOLVING A PENDING TRANSACTION REQUIRING MAXIIMUM CONFIDENCE.

This explains so, so much.

High-res Not to pick on this particular story, which is good, but what it and other pieces on the financial meltdown commonly miss in this is that many banks, including Goldman, actually got far more from the Feds than just the money they borrowed. This report says that Goldman borrowed at least $24.2 billion, and that’s presented as the extent to which taxpayers helped the company out. But, because the government also propped up AIG, which in turn made these banks %100 whole on their bad deals that AIG insured, you need to add, in Goldman’s case, at least another $12.9 billion, for a total of more than $36 billion in government assistance. 

Not to pick on this particular story, which is good, but what it and other pieces on the financial meltdown commonly miss in this is that many banks, including Goldman, actually got far more from the Feds than just the money they borrowed. This report says that Goldman borrowed at least $24.2 billion, and that’s presented as the extent to which taxpayers helped the company out. But, because the government also propped up AIG, which in turn made these banks %100 whole on their bad deals that AIG insured, you need to add, in Goldman’s case, at least another $12.9 billion, for a total of more than $36 billion in government assistance.