deregulate my bailout please

to professor steve hsu at information processing

its sad to see intelligent people propound the idea that deregulation is worth the occasional melt down

no amount of entrepreneurial genius can compensate the national and world economy for the wholesale damage done by GS and other bankstas

( see great depression 1929 thru 1945)

had not the taxpayers, ie the federal government stepped in goldman quite possibly would have been mortally wounded as a going concern...goldman would not have been alone

the government receivership and bailout of aig allowed for the pass thru of over 13 billion dollars from aig directly to goldman

http://www.businessinsider.com/henry-blodget-goldman-sachs-wins-big-in-secret-bailout-via-aig-2009-3

make no mistake about it, all of goldmans protestations that this money didnt matter because of other hedging schemes is pure bs...failure on the part of the federal government to step in would have meant systemic financial collapse,and the collapse of a broad array of counterparties with a huge cascading events following

in 2008 goldman had an EBIT (op revenue) of a little less than 2 and 1/2 billion dollars...the loss of 13 billion from aig would have been devastating

and goldman would not have been alone as the universe of US financials who were by-in-large heavily "invested" in casino securitizations

dont worry about whether or not im right about this...the government has only delayed the inevitable...the toxic assets, or (legacy assets as geithner calls it are still out there

we as a society will be paying for this for a long time to come including a diminution of the middle class...we probably deserve it