In case we forgot, people are sheep!

Goldman Sachs (GS) gets nailed by the SEC. The market tanks. WHAT???

First, Goldman Sachs took money from the government in the form of TARP funds, because they couldn't survive without them. Then, the big boss flaunts his disrespect by bragging about record profits shortly thereafter.

His way of celebrating? Bonuses for all--and BIG BONUSES. (You can be sure that he didn't work for a $1/year to help the company right itself.)

Is it any surprise that the SEC would target them from spite? You don't think they might be trying to send a message to the other banks, do you?

Add to this that there is an entire sub-industry of lawyers who dedicate themselves to helping people reduce their home loan principle by threatening to sue the banks for predatory lending (or some other illegal thing they did during the loan process).

Is this any surprise that we'd find some high level thing of "fraud" to broadcast?

Let's pretend this is truly a surprise, and for some people, it really might be.

Okay, we'll give you that.

WHY is the entire market dropping? What sense does this make? Does Goldman Sachs own the entire country, or something?

To me, it seems like a simple case of market panic. One person panics, and the rest of them say, "FIRE!" and break down the doors, trying to escape.

If I had money on the sidelines, I would be investing today.

Keep jumping off the cliff, people. I love these sales!