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Gasparino And Chanos Discuss Lehman, Touch On Every Goldman Client's Lack Of Willingness To Short The Squid
Charlie Gasparino led an informative discussion with Jim Chanos earlier, in which in addition to the trademark topic of China, the two speak on Lehman, Goldman, pervasive financial fraud, state and local finances, i.e., the muni implosion (the stuff that keeps Chanos most up at night), on shorting US debt, on the Volcker rule and, lastly, on China. While for the most part the interview is boilerplate, what caught our attention is Chanos' reluctance to express his feelings toward Goldman in a monetary fashion: he refuses to short anyone he does business with. Indeed, this is the mentality shared by many. However, while Chanos may or may not be sincere in his reasons, most others would refuse to short Goldman primarily as a result of such activity showing up immediately on Goldman's very own Redi. And the last thing a prime broker account, and client of a monopolist wishes, is to be perceived as a rogue. It also explains why Goldman has been calling up alumni and tell them to be good. This is also one more reason to immediately commence Goldman monopoly proceedings with the ultimate intent of breaking up the organization which is certainly big enough to benefit its employees and shareholders, but far too big to either fail, or to survive in the long run.
Here are the key highlights from the interview, courtesy of Fox Business News:
On whether Lehman was a criminal fraud:
“I think it was. I think there were a number of criminal frauds that haven’t been prosecuted. I’m not going to name names, I just think anyone signing the financial statements who were CEOs and CFOs of these firms ought to be hiring criminal attorneys. Anybody who is lying to the public and their shareholders by saying one thing and doing clearly something else is committing fraud.”
“We have had kid gloves in this cycle and in this crisis in going after people and I’m still puzzled as to why.”
On Goldman Sachs:
“We do business with Goldman and we don’t short anybody we do business with.”
On predicting future financial frauds and scandals:
“There is some big picture stuff that worries us. Congress is like the French General staff in the 20th century. What we need to do is look ahead. They are talking about staffing the same people that didn’t see it the last go round. I worry that we are going to get a false sense of confidence on that.”
“What keeps me up at night clearly is the state of state and local finances. Municipal and state debt is going to be a big problem going forward. The numbers just don’t work. The demographic bulge is hitting that. You’ve got California, New York New Jersey. It’s going to be a tough issue. The fuse has been lit on the demographic time bombs for state and local governments.”
On whether he shorts the United States Treasury bond:
“Compared to what? That’s the problem. The problem is when you go short a government you have to, in effect, to do it another currency. I wouldn’t want to own thirty or ten year paper for my own account or my retirement account or any accounts I advise.”
“Every time we seem to be on the brink of a deflationary event, it’s very clear that the Fed errs on the side of excess money creation.”
On the Volcker rule:
“I think it’s going to make it.”
On China:
“China is in the midst of a world class property boom. It is leading to the economic growth we are seeing. Almost half of their GDP is coming from that.”
Part one of the interview below.
Part two can be found here.
Part three can be found here.
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Dont bet against the squid or you will lose your money.
Dont bet against Ben and Tim or you will lose your money.
They ll have their way.
CalPers might just force a different set of odds on the Squid moneymaking machine.
World's used-to-be-largest public pension fund owns 1.8 million shares of GS common. Already under heavy suspicion themselves, they are " evaluating the circumstances " of the Squid-focused allegations.
If CalPers bails, better hope it's orderly.
Chanos doesn't short anyone he does business with!!!!
To bad he doesn't have protate cancer (DNDN) or Multiple Sclerosis (ELN) or any number of other business that have been shorted almost to extinction ---Because he would have been doing business with them if he took the life saving drug.
Too bad for those needed the drug
And I wonder if doing business with GS means he can naked short --- because under the Madoff exemption --- a prime broker does not have to find a borrow in 3 days --- and guess what they can lend their right to favored hedge funds.
What a spinless chump this Chanos
Greeks are honourable. Just don't lend to them. OPA!
"What keeps me up at night clearly is the state of state and local finances. Municipal and state debt is going to be a big problem going forward. The numbers just don’t work. The demographic bulge is hitting that. You’ve got California, New York New Jersey. It’s going to be a tough issue. The fuse has been lit on the demographic time bombs for state and local governments.”
There's no need to worry about this, we're going to make so much money on the stock markets, we won't mind bailing them all out.
Is Chanos ever right?
Is Chanos ever right? Errr, a lot, actually.
http://nymag.com/news/business/52754/index5.html
Oh yeah, and a company called Enron.
Offcourse, you do not go against the family. People are afraid what shit GS will pull next -- that which will only be discovered 10 years later. The Mafia.
Chanos was shorting autos in the last 12 months....bad move...Chanos has been chicken little on China...been wrong....Chanos might end up being right on China, but early is wrong.
Loyalty will get him nowhere:
Don't think for a second that Goldman would return the favor. They probably already have a fire policy on his house.
Funny, Goldman has no trouble shorting its clients.
That summary is hilarious of course: "he refuses to short anyone he does business with." Government Sachs has abolutely no problem shorting the stocks of companies they do business with.
Here's a good explanation (and I apologize if the source makes it seem partisan -- it is simply the truth):
http://gopleader.gov/News/DocumentSingle.aspx?DocumentID=181829
Chanos is lying, too.
He knows damned well that Cassano, O'Neal, Fuld, Immelt, all of them are Royalty, can't touch the hem of their garments.
For Chanos to claim that he can't figure out why is disingenuous and really takes away from his authenticity, and his message. I know he has to watch it legally, but the simple use of "alleged" would have cured that worry.
And Holder is a pussy. A gigantic, hairy pussy.
Charlie Gasbags didn't happen to rush onto the set with the latest "Ambac is getting bailed out!!!" rumor, did he? I miss the days when Gasbags could move the Dow +300 points in the final hour with a well-placed bogus rumor - makes me downright nostalgic, it does.
You can't cause an avalanche without the snow piled just so!
without a doubt Fuld, Blankfein et al "are royalty." one of the fascnitating elements of this Royal Scam (because, pleeease--to speak of this as mere fraud as the SEC must of course AND GOLDMAN KEEPS REPEATING ARROGANTLY and "in your facie" just doesn't "due this justice" no?) is the lack of whistleblowers. in other words this is more than just "everyone does it." this is "everyone is making money on it." the whole "enterprise" basically seems like a "sex trade" where "what's the point of whistle blowing because at the end of the day we're doing is what we're suppose to be doing here. It's God's work." I'm still VERY interested in this Fabriccio kid. 27 year old VP who's "incompetent" or "doesn't have a license." Who is this kid? Because this is Goldman Sachs, of course. He didn't get the job because HE was homeless. And yet JP DID hire "the homeless guy" whos girlfriend when she went to withdraw some "spending money" in the Carib noticed the account contained 120 million dollars! (WSJ yesterday.) In other words GS "stands by Farbrice" but Fabrice cost GS almost 1 billion--and nobody finds this odd?
EURO continues to get a lot of support ...
But USD index weekly chart continues to give bullish warnings.
Euro chart:
http://www.zerohedge.com/forum/latest-market-outlook-0
Where can I find the cross-examination of William K Black at the Lehman Hearing.
I saw his prepared statement (coruscating), but haven't seen the 'elected' numpties follow-up
Yo! Why the edit on your original post? The video has been removed and the first part cannot be found on FOX-cnbc-'s website. Strange this was the most interesting part regarding the Fraud committed by Lehman and Goldman.
Censorship here? What a shame/sham