Fabrice Tourre today "categorically" denied allegations against him before the Permanent Subcommittee on Investigations in Washington. The Goldman exec vowed he would defend himself in court against charges specifically of fraud, and no doubt in the press against what is essentially the blame for the entire financial meltdown being symbolically cast at Goldman-Sachs' feet.
Redstate readers are familiar with the "magical" (as Dan Gainor put it) timing of the SEC investigation into charges that huge Obama donors Goldman-Sachs essentially created something designed to fail in order to then bet against it. Such evil greed, so blatant, and so on time for the Obama administration's push to control the financial sector.
Financial "reform" is a biggie, and the President needed a bit of populist anger to create popular support in a populace becoming increasingly restive in the face of growing government. And then "poof" ... a villain appears. But as Erick pointed out last week, "poof" can sound a lot like collusion.
To summarize the timeline of events Erick posted on last week: The SEC announced its charges Friday morning. At 10:38 a.m., the New York Times broke the story. 28 minutes later, Organizing for America sent out an email in President Obama’s name calling on people to support his version of “Financial Reform.”
Right after that, the New York Times published a massive hit piece on Goldman Sachs’ alleged actions during the highly publicized bursting of the housing bubble. By that afternoon, the DNC had launched a Google Ad campaign tying Goldman Sachs’ alleged wrongdoing to the need for Obama’s “Financial Reform” proposal. As Erick wrote, this is stunning – especially since (and this bears repeating ad infinite) Goldman was a top donor to the Obama campaign in 2008.
Erick and Dan both (rightly) questioned just how this series of events would have been treated by the press if this had happened during the Bush administration?
If you need a nutshell overview of the situation with Goldman, I can't recommend anything better than that you listen to Francis Cianfrocca break it down on "Coffee and Markets". It isn't black and white. Should Goldman-Sachs not have done precisely what they did? Perhaps not. But as Cianfrocca points out, there was risk on both sides.
Yet, if there is one thing the Obama administration likes, it's villains. Bush did it. Rush said it. Domenech wrote it. Insurance companies are killing you. Oil companies are bilking you! Arizona hates Mexico!! And now Goldman-Sachs ruined your house. This is the formula for control that works perfectly for the Obama administration, thanks in no small part to a compliant media. Identify a sector to be controlled, give speeches about how said sector has run amok and turned against you, produce a named villain or, in the case of health care, named victims, and then seize control by any means available. And when all else fails, haul citizens and corporations before a committee for a hearing. After all, even if you were transparently wrong, nobody will make a big deal out of it. What, and risk becoming the next target?
This tactic isn’t just used to enact specific legislation, however. Demonization is the method of choice for Democrats in need of popular support. People didn’t care for how the health care vote went down? Never mind that; tea partiers spit on me! Town hall attendees were mean to me! From Rep. Alan Grayson (D-FL) claiming Republicans “want you to die” to President Obama vilifying the Supreme Court during a State of the Union Address, those holding the levers of power in Washington have transformed the Chicago Way into the new American Way. Or maybe it’s better termed the Alinksy Way: Pick a target, take it out. Pick a target, take it out. And all from within the walls of the White House and the halls of Congress.
The Obama machine is big on message, and this is one message that's loud and clear: "you're either with us, or you're against us. And you don't want to be against us."
The power of government is being brought to bear against American citizens for protesting, analysts and reporters for questioning, and the free market for being the free market. I would tell you to worry about being the next target ... But you already are.