This week the alleged evildoers from Goldman testify before the US Senate Permanant Subcommittee on Investigations. The emails released over the weekend are required reading for all interested parties. What is really interesting, however, is the range of discussion regarding the facts of the case and the fundamentals of what Goldman allegedly did WRONG. Here is William Easterly getting his clock cleaned with comments after he posted that all Goldman was doing was hedging.
Also, IKB-the German bank/victim of the alleged fraud has gotten little press so here is a blog regarding them. Remember, Goldman needed ACA involved so that IKB would be comfortable investing in the CDO. (just hedging my left foot!)
I find the articles in the press all over the place in terms of what the case is about from a mindless attack on the only firm that can help us get out of recovery, to a futile attempt by the SEC to dispute the materiality of the ommission (that is failing to disclose to investors that Paulson helped pick out the debt in the CDO-was that a material ommission??). Maybe the case is all of these things. It just seems that so many people don't understand the basics and they should-'cause it ain't rocket science.
I do think that there is a serious lack of financial literacy in America. We need to start explaining this stuff to kids in High School and at the community level as well. Financial education is the job of FINRA and the SEC. Protecting investors also means educating them.