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The product was new and complex, but the deception and conflicts are old and simple. Goldman wrongly permitted a client that was betting against the mortgage market to heavily influence which mortgage securities to include in an investment portfolio, while telling other investors that the securities were selected by an independent, objective third party.
—Robert Khuzami, the director of the S.E.C.’s division of enforcement: via NYT. What similarities or dissimilarities are there with the circumstances around the Magnetar CDO trade?
The SEC’s charges are completely unfounded in law and fact and we will vigorously contest them and defend the firm and its reputation.
—GS, response, an hour later
—Mike Blum, GS CMBS surveillance expert: via Dunlop
More and more leverage in the system, the whole building is about to collapse anytime now…Only potential survivor, the Fabulous Fab[rice Tourre]…standing in the middle of all these complex, highly leveraged, exotic trades we created without necessarily understanding all of the implications of those monstruosities!!!
—Fabrice Tourre, VP, Goldman Sachs, January 23, 2007. He would soon receive an email from the head of GS&Co’s structured product correlation desk, “the cdo biz is dead we don’t have a lot of time left.” (February 11, 2007)
Luddites today are no longer faced with human factory owners and vulnerable machines. As well-known President and unintentional Luddite D. D. Eisenhower prophesied when he left office, there is now a permanent power establishment of admirals, generals and corporate CEO’s, up against whom us average poor bastards are completely outclassed, although Ike didn’t put it quite that way. We are all supposed to keep tranquil and allow it to go on, even though, because of the data revolution, it becomes every day less possible to fool any of the people any of the time.
—Thomas Pynchon, Is It O.K. To Be A Luddite?, NYT: via Rough Type
Pro-IP act, the GAO review, and industry-funded assertions of losses to piracy and copyright theft
The GAO concluded that it is difficult, if not impossible, to quantify the economy-wide impacts [of copyright violations]
To avoid large and unsustainable budget deficits, the nation will ultimately have to choose among higher taxes, modifications to entitlement programs such as Social Security and Medicare, less spending on everything else from education to defense, or some combination of the above. These choices are difficult, and it always seems easier to put them off — until the day they cannot be put off any more.
—Bernanke, in remarks to the Dallas Regional Chamber of Commerce – 7 April 2010
He was maybe just somebody with mental problems who happened to have a camera
—Banksy, on Thierry Guetta, from Exit Through the Gift Shop, with a nod to Nate Tate
and today time and space are as if they were not, and from sea to sea our subjects of thought are as one. It was but yesterday that half our world knew not how the other half lived: now both halves read the same items at breakfast.
…the early telegraphers were planters for Graham Bell, and the telephone came to carry the word of man afar, and the graphophone to perpetuate it forever, and thus to complete the annihilation of space and time as obstacles to the diffusion and unification of intelligence.
—W J McGee, Fifty Years of American Science, September 1898: via Atlantic Monthly.
the machine has emancipated these beauties of nature in wood; made it possible to wipe out the mass of meaningless torture to which wood has been subjected since the world began, for it has been universally abused and maltreated by all peoples but the Japanese.
—Frank Lloyd Wright, The Art and Craft of the Machine, starting with a democratic tendency of the machine age and pointing toward a more primitive aesthetic
The Future of News, volume 139, number 2, Spring 2010: Daedalus
