CHANGE OF PLANS

I was going to write about the spate of good economic news that pushed markets into record territory and the 10 year yield up to 2.71% at the close, but around 3:00 pm came the news that Fabrice Tourre, the "Fabulous Fab" and former Goldman investment banker had been found guilty of all but one count in the civil suit brought by the SEC for misleading investors in the creation of a synthetic CMO back in 2008.  Whoopee Damn Do said I to myself, here's a blow for truth, justice and the American way.  Of course some time ago the SEC had allowed Fab's employer, Goldie, to skate on the same set of charges without admitting anything and upon the payment of a $500 million or so fine or chump change if you happen to be one of the "partners" at Goldman.  But in a stroke of luck for the SEC Fab, the Fabulous Idiot, decides he's going to fight this thing in order to protect his good name.  Waddaya know, we get a BIG win (the Times will love this) and some serious face time for the new boss, Mary Jo White.

I didn't get much sleep last night, my back is killing me and as such  I'm in a foul mood, but I thought that a brief comment had to be made.  This is probably close to being the stupidest waste of the taxpayers' money in quite a while.  Aside from pointing out what sort of idiots inhabit the investment community such as the ones that bought the crap Fab was peddling, does anyone seriously think that Goldman is going to let some 20-odd year old brat run a $250 million plus deal for a client the size of John Paulson?  You blew it guys when you let Goldie off the hook despite the fact that the mob that got jammed were not exactly The Little Sisters of the Poor, and in exchange you get the scalp of the Fabulous Fab only because he's dumber than a box or rocks!  Ah Mary Jo, we thought we knew ya.  On top of setting no precedent whatsoever, Fab is probably judgement proof--certainly to the extent that there is no way he can come up with the kind of jack to pay off what is claimed to have been lost. But you spent about a couple of million of the taxpayers' money and GOT   YOUR    MAN.  Bully, as old Teddy would have said.  Now, do you think we can get back to the World of the Real?  I'm going to try to get back to the Land of Nod.  Jobs number tomorrow.  I can barely wait.