Goldman Sach's Fraud

In a 22-page complaint filed Friday, the Securities and Exchange Commission charged Goldman Sachs with defrauding investors on real estate securities likely to go bust.


Basically, this is a filing against the collusive agreement between Goldman Sachs and Paulson


In January 2007, Paulson meets with Goldman Sachs vice president Fabrice Tourre, and asks for help betting against these bonds through the use of credit default swaps -- essentially, Paulson is asking to buy insurance on the weakest subprime-mortgage bonds.

In layman terms, Paulson will pick a bunch of securities that is extremely precarious and then he requests for help from Goldman Sachs to place insurance upon them to create a facade that they are indeed buyable and definitely not going on default for sure. Bonds with insurance shows that they are safe to a certain extent and with Goldman Sachs' backup, it will buy the consumers' confidence.


Of course, if the consumers knew that Paulson hand-picked those securities, they will not buy into it either because they all knew that it's a ruse of his. So, he chose ACA management as his scapegoat. To the public, ACA management is the one that chose those securities and Goldman Sachs as the insurance agent.


He painted an almost ostensible front to conveal the bones and skulls behind the securities.


In trying to sell the new ABACUS portfolio to investors, Goldman Sachs uses false and misleading marketing materials, according to the SEC.



The materials, created by Tourre, boldly claim ACA as the "portfolio selection agent," but make no mention of Paulson's role in selecting the bonds. As you all might have already guessed, Paulson picked those securities that are extremely risky and complex.


Beginning in 2002, IKB Deutsche Industriebank AG, a commercial bank in Germany, had been involved in the purchase of assets backed by U.S. mid-and-subprime mortgages.




But in late 2006, IKB informed Goldman Sachs and Tourre that it was no longer comfortable investing in mortgage bonds that were not selected by an independent third-party with knowledge of the U.S. housing market.

In February, March and April 2007, Goldman Sachs sends IKB copies of the ABACUS marketing materials, all of which represented that the portfolio had been selected by ACA, and failed to mention Paulson.



The SEC charges Goldman Sachs with fraud for failing to disclose Paulson's conflicting interest and role in selecting the ABACUS portfolio. The civil suit asks for a jury trial, and for Goldman Sachs to be fined and forced to repay illegally-obtained profits.


In conclusion, the point is that Paulson is not supposed to pick those securities because he can be very biased in the selection process and on top of that, he is trying to undermine the precarious nature of these securities by colluding with Goldman Sachs to create a facade for those risky securities he picked.


In turn, this case is synonymous to the fact that a trader is desperately trying to get rid of something that is extremely challenging to sell, by making it seems like it's one of the safest investment to make with all the superpowers' assurance behind it.


Credits -cnn, -foreclosure, -seeker401

cobrasnake.

beautiful people at coachella.

{via cobrasnake.}

European airlines

As we all know, the recent volcanic eruption has left the European airlines floundering. In fact, many of the other airlines are affected as well, and this includes those that are flying towards Europe.


Airlines have got the closed sign up and are hemorrhaging revenue every day. It started having a major impact for UK carriers but now it's become pretty well a Europe-wide phenomenon.



With the volcano cloud still present in the air, the airlines simply cannot operate due to safety concerns. And if the flights are stuck, their profits will plummet along with heavy charges. They will have to reschedule flights and these will involve lots of unnecessary operational costs with no profits.

There will be huge bunch of disgruntled customers for sure and a lot has to be done to house these customers for most of them have no place to live for the time being.


Arrangements have to be done to help reschedule these people and help them find a place to live in before they take off in another flight.


But the main concern here is that the revenues lost a day is brobdingnagian. In fact, its been costing the airlines more than 230 million euros in a single day !

Enough about all the griping about the revenues lost.


There are many more concerns that are of higher priority. This includes the delivery of food, services, goods, medical supplies and various other exports overseas. All these delays can actually cost the European economy a gargantuan amount of loss.


As we all know, the European economy is one of the worst right now, considering that we are actually witnessing recovery in the United States. Right now, the European economy is still receiving aid and they are still floundering.


With the latest volcanic eruption, it has just exacerbated the already emasculated economy further. Now, Europe really has to scrutinize every single move they made for it might cost them heavy repercussions if there were to be one mis-step.


Workers are not able to work, exports are not being exported, imports are not coming in either and worse still the economy is still in its nascent recovery stage.


On top of all that, we have the fraudulent case tied hand in hand to Goldman Sachs, one of the leading Wall Street Bank.


Trouble just keep coming, don't they?


Yep, that's all for now, let's pray hard for all this to be over and may we live happily ever after, NOT!


Credits -yahoo, -rotor, -sindhtoday

ANTM Spoilers

Here are the spoilers


Enjoy the pictures

Alasia

Alexandra

Angelea

Anslee

Jessica

Krista

Raina

Credits -livejournal

i heart coachella.

{via refinery29 and vogue.}

Glee is back!

Glee the all-time hit is back!

It is a musical, almost synonymous to High School Musical, just that it has a plot this time round, that is a little more sophistaced which touches on relationship issues, academic issues, what you want in life and of course the all-time favourite topic, backstabbing.


Basically it highlights the arduous times people are having in their high school. We see Gossip Girls being a hit because they demonstrates the high life people are leading in high school. However, do people really lead that sort of profligate lifestyle in high school?

The answer is a palpable no. So why is Gossip Girls so popular still? Well, simply because it's every high school's girls dream to lead that sort of life. It's a dream, a figment of their wild imagination. They want to belike Blair Wardoff or Serena, or Chuck or Nate.


Conversely, Glee takes a different approach. They displays the sort of life which almost every high school girls and guys are leading, the mundane life. But they all want to spice it up and make it as exciting as possible.


They know that by joining Glee, a show choir, they will be termed the lowest class in the high school. However, when you see them being themselves, having fun and immersing themselve in the life, you get jealous and then you start to think. Maybe I should just stick to being myself instead of being spurious in nature.

Maybe I can make a difference and be Sui Generis for once, rather than conforming to the mainstream.


Glee, is like a musical that brings people back to earth and the best part is that many of them can actually relate to it. It's fun, simple and yet dramatic.

Do proceed to watch the first season if you have not, before jumping straight into the second one.


You need to immerse yourself in the first season first or you will be at a loss in season 2.



Credits -ivstatic, -userserve

*Runway: Michael Kors

 Think old Hollywood with a Pixar Palette...

The Spring Ready To Wear Collection from Michael Kors can be described as a sleek, elegant show with eye for detail. The description of his Spring '10 opus began with the two words, 'Urbane Renewal,' setting the stage for a collection that would both cultivate and transform. Kors found his inspiration in architectural shapes; utilitarian luxury; sharp angles; see-through cutouts; plus soft painterly prints and ink splatters.  Modernism was the name of the game, as black, stark whites, icy blues, mint greens and lavenders played with neatly tailored silhouettes. But all is in balance with simple shapes and controlled effects. Some pieces prevailed a rock star edge, but most pieces were decidedly ladylike. Elegant and edgy pieces toed the line through a controlled ''Michael Kors'' aesthetic.

*Watch the collection here and tell me what you think!*

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