I don’t agree that all GS was doing was playing the bookie, or that they only realized what they’d done was a mistake in hindsight. They took out insurance on CDOs they didn’t even own (imagine taking out insurance on someone else’s car then profiting on it when they get in an accident) and re-packaged those CDOs into financial instruments which were then systemically disbursed. Then, to top it off, they made $13 billion in insurance when those CDOs went belly up while other financial institutions and investors crashed and burned around them.

Taken in the context of Goldman Sachs’ history, I don’t believe it’s possible to argue they were simply bookies. They knew what they were doing–they were in it for short-term profits, to get out before the melon hit the sidewalk, as RollingStone put it. That’s sleazy and, if not currently illegal, should be made so immediately. At the very least, GS and all those responsible should be stripped of their profits, because right now they’ve made off with billions of tax payer dollars, meanwhile the gulf between the rich and poor continues to grow. In the larger context, Mr. Zakaria, GS and other culpable firms are swindlers and robbers, not innocent victims of financial complexity.