In an article in Today's New York Times, the SEC has filed a civil law suit accusing Goldman Sachs of selling investments they knew would fail, and then covertly betting against those sales, thereby richly profiting from the losses taken by their investors.
This is a perfect example of a zero sum gain, whereby one person only wins when someone else loses. of course, this example also includes straight-up fraud, which is even more ethically disturbing than taking advantage of asymmetrical information.
This is yet more evidence that the financially industry has become nothing more than a dishonest car mechanic who tells you your brakes need fixing when they don't.
This is yet another example of why we need financial reform in this country. It seems odd to me that a single political party is unified against this reform. It couldn't be that they are hoping to obstruct and win short-term political points...
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