Could Goldman/Sachs lose?

Here why the suit The lawsuit against Goldman-Sachs might fail.....simply it may be lawful in the United States for them to do this.
Posted on "The Disgruntled Astrologer".

Lynn A. Stout is the Paul Hastings professor of corporate and securities law at U.C.L.A. and an expert on corporate governance.

"If the allegations against Goldman Sachs are true, then much of the blame for investors’ losses in the Abacus deal can be laid at the feet of an obscure statute passed by Congress in 2000, the “Commodities Futures Modernization Act.”

In one dramatic move, that act eliminated a longstanding legal rule that deemed derivatives bets made outside regulated exchanges to be legally enforceable only if one of the parties to the bet was hedging against a pre-existing risk.

This traditional derivatives rule against purely speculative derivatives trading has a parallel in insurance law, because insurance, like derivatives trading, is really just a form of betting. A homeowner’s fire insurance policy, for example, is a bet with an insurance company that your house will burn down.

If we allow the unscrupulous to buy fire insurance on other people’s houses, the incidence of arson would rise sharply.
In one dramatic move, that act eliminated a longstanding legal rule that deemed derivatives bets made outside regulated exchanges to be legally enforceable only if one of the parties to the bet was hedging against a pre-existing risk. "...

So am I understanding correctly here, that if you a homeowner can buy fire insurance against your home. Your buying insurance against your own home, the person issuing the insurance is assuming your not going to burn down your own home, right?

But what if a third party can buy fire insurance on your home? In that article she suggest that the incident of crimes like "Arson" would vastly increase, as maybe a third party can collect insurance on your home. Is she suggesting this is the situation that has been going on economically, and the situation in the lawsuit with SEC? I

The lawsuit against G/S simply might fail because it may have been lawful for Goldman/Sachs to do that.

I predicted G/S would win the lawsuit..or there would be some kinda of "surprise" involved here. Maybe someone should speak about Cosmic Justice if there is such a thing. Maybe I am being a bit "cynical" (Saturn in Virgo ) . Although it might be somewhat easy to suggest that G/S will win......

Investment banks practically bankrolled Obama into the Presidency. Hank Paulsen, the Treasury Secretary under George Bush, Paulsen Ok'd the T.A.R.P loans remember..well before he was Treasury Sect, He worked for Goldman /Sachs ("One hand washes the others back"). There are a number of former G/S people in Obama's Cabinet at the moment if I remember correctly.

Investment banks spent more than 2 billion dollars lobbying congress to pass bills like the "Commodities Futures Modernization Act", repelling the Glass-Steagall act , and others so when the S.E.C goes to testify in congress, they'll be talking to a bit of a Kangaroo court.

Just about every congress person there will have probably received some kind of money from investment banks, including some from Goldman/Sachs.

I guess that the Obama administration is under alot of international pressure to go along with the S.E.C findings...after all if they lose the suit...the international community might sanction the U.S economically..no one is going to want to do business with the U.S. Sarkozy,the P.M of France is ready to admit Moslem's in his country, Ice is ready to blow here top. Greece is asking for spare change.
Yet Obama is probably under even more pressure from the Wall Street community.

And don't forget were in a war, which is seemingly about Oil. The one reason were not in dire financial straits and still a player in the international community is because of Oil. We got Iraq, they have oil. We can sell oil in U.S Dollars. Our competitor seems to be Iran, they have oil too, and are selling it in Euro's.

If this skulduggery is allowed to continue in the U.S, maybe the world might side with the Iranians, and buy only their oil, The Iranians might respond by lower there prices for oil. Now I think I understand better why the U.S or Israel isn't so keen on attacking Iran.....because Iran might respond by by bombing bases in Iraq and oil facilities there...if we bomb theres in Iran.

Yet though maybe theres some room here for some intervention here. in a couple of months you might have something like +=AP ( Aries point) that's a pretty cosmic connection isn't it. Maybe the SEC might win because their move has impetus,boldness and thrust.

I'm hoping that the SEC will really win that case, if your asking me. Though the S.E.C is in trouble. Someone is claiming that S.E.C employees spend too much time watching pornography at work.