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Goldman's Golden Fleece

The steady stream of revelations regarding the role Goldman Sachs has played in the fleecing of Europe should reinvigorate efforts in Congress to rein in the reckless trading that could send the global economy into another tailspin.

To recap, Greece and a number of other European Union countries are dangerously in debt. EU rules say member countries cannot have budget deficits that exceed 3 percent of their gross domestic product (GDP). The Greek government recently revealed that its debt is closer to 12 percent of GDP. Other countries including Spain, Ireland, Italy and Portugal are also in trouble. Like our behemoth banks, these countries are “too big to fail.” A default by any one of them would put an end to talks of “green shoots” and could lead to a double dip recession.

Cheney's Huge Blunder

Former VP Dick CheneyIn April, 2009, former vice president Dick Cheney called for the Central Intelligence Agency (CIA) to release classified memos he said demonstrated how well "harsh interrogation methods" -- torture -- worked to prevent terrorist attacks and save lives. But investigators with the U.S. Department of Justice (DOJ) Office of Professional Responsibility (OPR) just released a report saying that the CIA memo Cheney cited as justifying U.S. torture contains "plainly inaccurate information" that undermines its conclusions.

Deceptive Big Bank Ads Will be Key to Election 2010

Even before a recent U.S. Supreme Court decision blew the lid off corporate campaign spending, it was clear that the big banks would be key players in the 2010 election cycle. Unemployment will remain high, and so will resentment against the banks -- a volatile combination that will encourage savvy members of Congress to continue to fight for meaningful reform of the financial sector.

Congress Needs to Clip Goldman's Wings

The New York Times' front page exposé on the role that Goldman Sachs has played in the Greek tragedy unfolding in Europe right now raises a huge number of concerns both for the U.S. economy and the financial reform measures now in Congress.

To recap, Greece and a number of other European Union (EU) countries are dangerously in debt. EU rules say member countries cannot have budget deficits that exceed three percent of GDP. Greece's debt is closer to 12 percent. Other countries including Spain, Ireland, Italy and Portugal are also in trouble. These countries are "too big to fail." A default by any one of them would rock the global markets, putting an end to the hopeful signs of an EU recovery and potentially leading to a "double dip" recession here in the United States.

Greece and perhaps the other EU nations have been hiding the extent of the debt for years. This week, it was revealed that they have been able to do this with the aid of major U.S. players like Goldman Sachs. The German magazine Der Spiegel broke the story that Greece did a billion-dollar currency swap with Goldman Sachs in 2002 that did not show up on the nation's books as debt.

Oil-Funded Gov Joins with Oil-Funded Front Group to Appeal Greenhouse Gas Regs

supreme court gas station signAlthough it seems a bit like a dog-bites-man story, the New York Times reported that Texas Governor and 2012 presidential aspirant Rick Perry (R-TX) has joined with the Competitive Enterprise Institute (CEI) in challenging the Environmental Protection Agency's decision to regulate carbon dioxide as a greenhouse gas. As the Center for Media and Democracy has documented on our SourceWatch site, CEI has been well-funded by Exxon and other oil companies, and is one of the main U.S. corporate front groups fighting efforts to address global warming and regulate the industry that feeds it funding. But, the courts are now stacked in Perry's favor, as noted below.

WellPoint's Heart-Stopping Rate Increase

Cash or Credit onlyA congressional hearing next week into the proposed 39 percent rate increase in California by health insurance giant WellPoint could breathe new life into health care reform efforts on Capitol Hill, especially if lawmakers broaden their investigation into the outrageous rate increases other insurers are also demanding from coast to coast.

WellPoint found itself in Congressional investigators' crosshairs after the California Department of Insurance challenged the company's planned increase in the rates it charges its customers who cannot get coverage through the workplace, but have to go it alone in what is called the individual market.

Goldman Accused of Rigging "Robin Hood Tax" Vote

It's really unbelievable. The way that Goldman Sachs keeps sticking its foot in it is simply unbelievable. Let's not review their gross profits and bonuses, or their many failed public relations schemes to gloss over unseemly profits, a practice we have dubbed "greedwashing". Let's simply recap this week's news.

On Sunday, the New York Times detailed in a front-page expose' how Goldman may have hastened the demise of AIG, and perhaps the global economy, by betting that the housing market would collapse and jacking up its insurance for mortgage securities with AIG to extract more and more money from the firm as the housing market went south.

My Big Fat Greek Bailout

While Treasury Secretary Timothy Geithner was on the talk shows reassuring America that the economy is healing, developments in Europe threatened to cut the legs out from under a U.S. recovery.

The short story is that Greece and a number of other European Union (EU) countries are in debt, deep in debt. EU rules say member countries cannot have budget deficits that exceed three percent of GDP. Greece’s debt is closer to 12 percent.

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