January 7, 2011

THE BIG FACEBOOK FRAUD, COURTESY OF YOUR FRIENDLY NEIGHBORHOOD BANKSTERS AT GOLDMAN SACHS


All around the world, so-called "business reporters" are going bonkers at the news that super-awesome fraudulent vampire squid Goldman Sachs has "invested" 450 million dollars in genius wunderkind Mark Zuckerberg's social network Facebook, effectively giving it a current virtual value of 50 billion US dollars.

And there was much rejoicing, you know, the kind of rejoicing that is shouted out by people who are in the media and merely vomit out every first-line press release as the truth, without looking deeper into what is actually going on.

But there was much rejoicing, because with Facebook, what could possibly go wrong? Never mind that there are no publicly disclosed records on revenue, cost and profit. Don't worry, folks! It's Goldman Sachs! They know what they're doing, as they have so wonderfully shown by creating funds for the clients in the housing crisis that had the financial world collapsin (and never mind what they are telling you, that collapse is still going on, but now it is in slow motion and thus no longer worthy of the punctual reporting done by reporters who have the memory of a goldfish).

And there was much rejoicing, because, hey, didn't you hear? The dude had a movie made about him, and it was a good one. And he just was awarded by Time the "Person of the Year" cover, and hell, if that isn't a good timing, isn't it?

See, it always comes down to timing when you are about to commit a fraud.

Your marks must believe that this is all real, and you put on a song and dance show in the media, helped by those who have supposedly studied economics, but are either too stupid or too lazy to look at what is going on beneath the surface.

450 million! That means 50 billion evaluation! Awesome!

Only then you start to wonder, where exactly does that money come from? And what is Goldman Sachs going to do with its stake?

Well, for some reason, Bloomberg News got a hold of the relevant documents, and all of sudden, boys and girls, it doesn't look quite as kosher anymore, and we all know that if you are in New York, you better be kosher, or... oh what the hell, if you are in New York and on Wall Street, you don't need to be kosher, because you have all the wrong people working for the administration and the Fed.

With a serious apology to original reporters Max Abelson and Christine Harper, who uncovered this and have written about it here, let us take a closer look at their story, shall we? And then we will go, hey, haven't we all heard that before?
Goldman Sachs Group Inc. clients considering whether to buy shares in closely held Facebook Inc. should take heed: Wall Street’s most profitable securities firm could unload its own holdings without letting them know.
In the very first sentence, we already see what is at stake here. Goldman Sachs, with a lot more information that its investors, gives itself the right to sell their own stakes without informing the investors that they are selling the tiniest stakes to, through a special fund that they have set up and get dumb fucking money in, for a company that the dumb fucking money doesn't even know makes a profit, will ever make a profit, knows nothing of its internal workings, in other words, skirting every rule and regulation once more. Gosh, didn't we have that already? With the derivates market? Trust us, folks. We would never defraud you!
In the last sentence of a one-page investment profile sent to private wealth clients, the firm explains: “GS Group may at any time further reduce its exposure to its investment in Facebook (through hedging arrangements, sales or otherwise), without notice to the fund or investors in the fund.”
Yep. This is the same company that has done this before, and they are doing it again!
The offering document, obtained by Bloomberg News, shows that $75 million of the $450 million investment in Facebook by Goldman Sachs is coming from Goldman Sachs Investment Partners, a hedge fund that handles client money. The firm’s own $375 million investment will probably be cut to $300 million because Goldman Sachs expects to sell $75 million to third parties or to the fund it created so clients could buy a stake in Facebook.
A day or so later, and the fund is already closed, so you better believe that there were enough retards available to spend money on this. But hey, Goldman Sachs even tells the idiots that they are not telling the "investors" everything, see?
“There may be conflicts of interest relating to the underlying investments of the fund and Goldman Sachs,” according to the Facebook offering document’s disclosures section. Material in the documents “is not guaranteed as to accuracy or completeness.”
Oh, and didn't we say that they had done it before? Right on, here we go!
Goldman Sachs paid $550 million in July to settle fraud charges filed by the Securities and Exchange Commission relating to the 2007 sale of a mortgage-linked investment called Abacus. The company said it made a “mistake” by failing to inform clients in the 2007 deal that it allowed a hedge fund betting against the investment to help put together the deal.
Ah, yes. Defrauding is fine, if you are Goldman Sachs. And even when you get caught, the penalty (all of it handled in secret) wil amount to nothing more than a slap on the wrist, and if you are wondering as to when 550 million become a slap on the wrist, then know this, it became that when we started to defrau people on a scale of hundreds of billions of dollars.
To get a stake in Facebook, Goldman Sachs clients are required to make a minimum investment of $2 million by Jan. 7 in what’s described as limited partnerships based in the Cayman Islands and Delaware. Goldman Sachs is charging 0.5 percent of any capital committed to the partnership as an “expense reserve” as well as a 4 percent placement fee and 5 percent of any gains, according to the document.
Here we get to know that Goldman Sachs will make money no matter what, but let's not dwell on that too much, just look at the fact that all of these things go through "Limited Partnerships", and where? TO get a stake of the most miniscule propoprtions of a company that you as an investor are not allowed to know anything about? Ah, yes, the great American tax havens Delaware and the Grand Caymans, you know, where all money goes to get its dick sucked by beautiful black women bringing you little drinks with umbrellas in them!
A letter addressed to “potential investor” that introduces the Facebook investment profile ends with a two- sentence paragraph. The first asks potential investors to contact a Goldman Sachs representative for further information. The second says:

“Do not contact Facebook.”
Yep. Don't talk to the company that you have invested in. Don't even fucking approach them. All line of information will only have to through Goldman Sachs, which has above told you that they are not required and in fact will not give you all relevant information to make an informed choice about your investment. And who can dump their own stake behind your back, based on secret information that only they have.

And barely anybody outside Bloomberg has reported it. In Germany, for example, Der Spiegel is still in the throes of business lust, giving their readers the notion that, yes, it is a bet on Facebook's future, but that in the end, everything and anything is above board.

Nothing has changed. Nothing at all. Supported by a largely retarded (and/or bought) media, the next bubbles are being inflated, the next long cons are being put in motion, and wait for the moment that they will burst, and kids, they will.

And the only winner on the field, once more?

Is the vampire squid, where nobody ever goes to jail, where all of them go to work for your government, and it doesn't matter if it is a Republican one of Black Barry's White House. They long ago bought them. Don't expect help from them. They are not your friends. They are not doing the jobs that you elected them for. And the media is not doing the job it is supposed to do.

And the clock is ticking.