Toddsterpatriot
Diamond Member
Yes.
So different than a bucket shop.
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Yes.
Not really. Tax expenditures have been placed in the tax code at a rate of about one a day ever since Reagan reformed the tax code in 1986.And all that requires much more than one committee chairman.
.
You enter into a contract in a bucket shop. A bet is a form of contract.
I have many, many times over the years asked why some Fox News host was not pounding their desk at this usurpation of states rights.Wow!
Ok, so how did the Fed get the power to stop the States from protecting their own citizen's finances from this?
Were there SC rulings? Hasn't anyone sued, showing the usurping of State power.....?
They aren't. That's the beauty of the game if you are a fraudster. Your marks have no clue you are ripping them off.Hopefully your derivative counterparty is more reliable.
They aren't. That's the beauty of the game if you are a fraudster. Your marks have no clue you are ripping them off.
That's why bucket shops were outlawed everywhere.
But Wall Street wanted to create their own form of bucket shop, and so they got the politicians they owned to pre-empt state laws so the fun times could roll.
I can give you an example: A Goldman Sachs CDO assigned the name Abacus 2007-AC1.
A hedge fund manager named John Paulson cooked up a crooked deal with Goldman Sachs.
Goldman Sachs allowed Paulson to handpick the most toxic assets he could find and pack them into a CDO.
Goldman Sachs then sold the CDO to investors. If my memory serves me correctly, one of the investors was a firemen's pension fund. At any rate, a fireman's pension fund was ripped off bigly by a similar deal.
Paulson then bought a credit default swap betting against Abacus 2007-AC1. In other words, when (not if) the CDO imploded due to being built out of toxic fucking waste, Paulson would make a huge profit.
As it turns out, the investors lost $1 billion. Goldman and Paulson made $1 billion.
You know what a Wall Street broker does after they hang up the phone after they defraud an investor?
"I ripped his fucking face off!"
They actually say this.
It's a joke to them. They care fuck-all about stealing retirement money from firemen.
This kind of fraud occurred countless times. I have the actual names of other Wall Street brokers who did the same thing.
It is only due to the ignorance of the American people and the abdication of the American media that these people have not been shot down in the street like dogs.
In a bucket shop, its the guy who walks in off the street.They aren't.
Who is your counterparty?
It's exactly what happened.Goldman Sachs allowed Paulson to handpick the most toxic assets he could find and pack them into a CDO.
Close. Not quite.
The investors who bought the CDO tranches.Paulson then bought a credit default swap betting against Abacus 2007-AC1.
Good for him. Who was his counterparty?
No one goes to prison. They just get fined IF they are caught.
Goldman Sachs was fined for Abacus 2007-AC1. The media trumpeted the news that it was the biggest securities fraud fine in history.
The fine was $500 million.
Their profit off that CDO was $1 billion.
Moral hazard, anyone?
In its April 16 complaint, the SEC alleged that Goldman misstated and omitted key facts regarding a synthetic collateralized debt obligation (CDO) it marketed that hinged on the performance of subprime residential mortgage-backed securities. Goldman failed to disclose to investors vital information about the CDO, known as ABACUS 2007-AC1, particularly the role that hedge fund Paulson & Co. Inc. played in the portfolio selection process and the fact that Paulson had taken a short position against the CDO.
In a bucket shop, its the guy who walks in off the street.
On Wall Street, it's investors.
It's exactly what happened.
Paulson picked the assets crammed into the CDO. Goldman Sachs then failed to inform the investors that Paulson had created the CDO and was betting against it.
The investors who bought the CDO tranches.
ETA correction: The investors were the counterparties on the CDO.
The CDS counterparty was probably AIG. However, by 2007 all the Wall Street broker-dealers were drinking their own Kool-Aid and were buying and selling CDS to each other. It could have been anyone on the other side of the Abacus 2007-AC1 CDS.
Not really. Tax expenditures have been placed in the tax code at a rate of about one a day ever since Reagan reformed the tax code in 1986.
It is ridiculously easy.