Forget Goldman, Start Worrying About Government:

Look, everyone and his brother are jumping on the “Goldman is evil” bandwagon these days. Even Rupert Murdoch’s Wall Street Journal is talking about Goldman Sachs like they are “a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money.” Well, I’m not. I’ve got news for you: you’re barking up the wrong tree.

It’s the U.S. government we should be pointing fingers at. While Goldman (GS) is crying out thank you sir, may I have another as everyone piles on, the U.S. government, which often seems bought and paid for by Wall Street and is the one actually running things here, is getting off scot-free.

Here’s a question for you, if Goldman made out like bandits from the AIG fiasco, who do you think allowed that? Government.

When Goldman’s Lloyd Blankfein was the only person in the room from Wall Street as AIG’s fate was debated, who do you think allowed him? Government.

When TARP funds were disbursed to re-capitalize Goldman and other banks, who made that decision? Government.

When Goldman repaid its TARP funds, paving the way for them to then hand out record bonuses, who do you think allowed this? Government.

When Goldman sold asset-backed securities to investors when it was net short the mortgage-backed market, whose rules do you think allowed this? Government.

Forget about Goldman Sachs. Start worrying about government.

They are the ones who regulate the financial services industry. Government is the one which makes laws governing how financial services companies can and cannot operate. Government is also the one which can change the ground rules going forward to help prevent a recurrence of this sort of financial crisis in future.

Hear, hear! Read the whole thing.