Thursday, April 22, 2010

Gates' Admission/Goldman Followup

Elliot Ganchrow writes:

The disclosure that Defense Secretary Gates wrote a memo which concludes that America doesn't have an effective policy to deal with Iran is not exactly a shocking admission. Anyone who has paid even a little bit of attention to the Administration's Iran policy would know that there is no coherant policy in place. What is puzzling to me is why Gates picked Iran over North Korea, Israel, Syria, Honduras, Columbia, Iraq, Afghanistan, Russia, Poland etc. After all, the President lacks an effective (or coherant policy) with respect to most of the hot spots in the world- Gates' memo could have referenced all of these areas.It is frightening that a year and a half into his Presidency, Obama still has no effective policy on Iran.

Two further revelations have fueled speculation that the case against Goldman Sachs probably should not have been brought by the SEC. First, the vote with respect to bringing charges was 3-2, with the 2 Republican commissioners voting no. Second, one of Paulson's officials testified that ACA Management (the main investor in the securities) knew that Paulson was shorting the securities. Both of these facts lend more credence to the theory that the White House was playing politics when the SEC brought these charges against Goldman.