Politics and Life

A new populism is sweeping through the world. An investment bank is blamed for unnecesarily.

Goldman Sachs is made a culprit of the Greek debt problem. Congressional hearings are held and European regulators are fulminating against the speculators.

That is bullshit.

Goldman Sachs helped to restructure the Greek debt. It was an open transaction. The EU accountants approved the deal.

Since the Greek revealed the EU’s consent, no one is examining the EU auditors role and the rules on which they approved the transaction.

What we see is a public relation campaing, though it is conducted now by leaders of powerful institutions. Ben Bernanke, the president of the Fed is the latest one who contributed to the ongoing campaing.

In this latest turn of the events, individual firms are targeted in lieu of the real responsible ones.

Financial markets were strictly regulated. So did we think some years ago. Firms, like Goldman Sachs, did what they could or, speaking more precisely, what they were let to do.

It happens that institutions and rules needs changing. It happens that frameworks that were useful before needs a deep overhaul. This is always based on a change of perception of what we see as a threat. During this crisis, credit default swaps has been identified as the main source of our problems. Unlucky that one can be, Goldman Sachs was trading them even for countries benefits.

If someone has problem with the trading rules and assests that are marketed, there is a short way to forbid their use. Governments can do that. Till they are blaming firms for their actions, they are just not doing their own job, which is nothing else than regulation.

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