It's Game Over, Goldman Sachs (NYSE:GS) Has Won

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I'll make this short.

It's game over.

The match that ended last Thursday wasn't the final match in the series being played here on U.S. fields.

But it might as well have been.

The score was so lopsided, it reminded me of those long ago and far away matches where everybody cheered the action, not the players, because the deck was always heavily stacked and the outcomes almost always a foregone conclusion.

Those days, long ago, such lopsided matches were all the rage in Rome.

And typically, when scores were posted, it would be something like Christians nothing, Lions twenty.

Last week, though the score didn't reflect the intensity of the match, the outcome was just as lopsided.

It ended up Justice nothing, Goldman Sachs (NYSE:GS) won (I mean one).

You see, there is no fire raging. It's all just smoke on the water. That's because the regulators – and oh yeah, that includes the Justice Department – have been thoroughly captured by the real lions of Wall Street. (Now, there's an idea for a reality T.V. show.)

In case you were too busy watching those other matches over in London, here's what just happened.

Goldman Sachs (NYSE:GS) Gets Away

On Thursday, the Justice Department ended its fraud probe of Goldman Sachs.

It turns out that, after looking up Goldman's skirt, they found that all that screwing going on up there was just part of the orgy that most Americans were reveling in.

In other words, that whole mortgage screw-all, it was all between consenting adults.

But no one wants to admit that absolute power corrupts absolutely, or that there's any such thing as "regulatory capture."

If you don't know that term, it's what we call it when a regulatory body, charged with acting in the public interest, is instead swept away and dominated by the interests of the sector it's supposed to be regulating.

Because of that, and because the poor banks have been screwed enough for just doing their jobs lending us all money so cheaply, the Justice Department proved once and for all what hacks they are, with their statement on ending their probe.

They said, Sure, our job is prosecuting financial fraud, but "protecting the integrity of our banking system" is and will continue to be the department's "top priority."

The criminal investigation was led by the New York field office of the Federal Bureau of Investigation and included the U.S. Attorney's Office for the Southern District of New York and the Special Inspector General for the Troubled Asset Relief Program.

They're all captured.

It's game over. They've won.

What am I going to write about now?

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About the Author

Shah Gilani is the Event Trading Specialist for Money Map Press. He provides specific trading recommendations in Capital Wave Forecast, where he predicts gigantic "waves" of money forming and shows you how to play them for the biggest gains. In Short-Side Fortunes, Shah shows the "little guy" how to make massive size gains – sometimes in a single day – by flipping large asset classes like stocks, bonds, commodities, ETFs and more. He also writes our most talked-about publication, Wall Street Insights & Indictments, where he reveals how Wall Street's high-stakes game is really played.

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  1. Raj Thamotheram | August 17, 2012

    Regulatory and political capture has been increasingly steadily for 2-3 decades but for sure, the situation is critical

    However, focusing only/primarily on how to make money of out this situation is as short sighted as the bankers themselves. A focus on market well being – the beta – is what would help balance this important but partial perspective which by itself also stands to be part of the problem. Its deeply unrealistic to think that just "chasing alpha" can protect us, individually and certainly at a societal level, from dysfunctional markets. Indeed, its one of the underlying reasons why we are in the mess that we are in.

  2. Mir Tariq Yakub | August 23, 2012

    Though it seems that brains of the US have no solutions. God has not left us humans for a second. His book is with us Quran. This is in the hands of illiterate and the most educated do not consult it. For the last 28 years I am {Pondering in it. I can forward my essays How to come out of this situation?

  3. stilus | November 14, 2012

    The Holy Bible is the book that the west has forgotten. I was in a frat/literary society at U Penn years ago and some of the pre-Wharton students were into bribery even at that point. There is the need for something new in man's spirit, a transaction with God. Short of this, all is ruin and decay. We will go into the dustbin of history.

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