What Did Goldman Sachs Do?

Some of these financial cases are very, very complicated. This one is pretty simple. Daniel Gross provides a good description of what the SEC charges against Goldman Sachs amount to. He uses one analogy, but I might try my hand at another.

Suppose I sell you a market basket of vegetables. We all know that the vegetables are going to rot sometime, but you're betting that most of the vegetables won't rot before you can sell them at a profit. What you don't know is that I have intentionally selected the vegetables that are most likely to rot quickly. So your market basket is loaded for failure. Why would I do that? Because another customer is paying me a large fee to take his bet that your vegetables will rot.

Nice, huh?