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Goldman Sachs Full Frontal

Tyler Durden's picture




 

The full scale media war against Goldman Sachs is now on and Mssrs. Canaday and Van Pragg can't hardly wait for the weekend to come already. The most recent exposure comes courtesy of Time Magazine and CBC Radio. The interesting thing here is not the publicity - everyone who is anyone knows all this stuff, and as for Joe Sixpack knowing the facts, well: absent a pitchfork billion man march on Wall Street, nothing will really come out of it. But the key thing to keep track of is whether Goldman will do a placating PR media campaign or merely stay shut in their shell. At this point the media avalanche is in full onslaught mode, and the insightful thing is whether Blankfein thinks it makes sense to preemptively approach the situation. The CEO of GS knows full well that the "full market support mode" will last only so long, and once it breaks and the floor out of the 666 S&P drops, the public will again demand blood (or Trueblood for all you vampire squid fans out there).


However, unlike before when the rating agencies were the most easy and
direct populist target for the next round of rancor, Goldman is edging
perilously close to becoming the strawman
for the upcoming Congressional lynching campaign, and depending on the
depth of the market collapse, the repercussions for Goldman could well
be far more dire than a wrist slap on C-SPAN. This is especially true
as everyone realizes that both Citi and BofA
are merely puppet banks of the state, and while JPM is probably as much
as symbol of Wall Street as Goldman, JPM is also much more of a real
bank, while Goldman is simply the biggest state-backstopped hedge fund
in the world (and thus, by implications, speculator) and thus,
expendable in the grand scheme of things (at least from the
administration's point of view if push really came to shove).

Which
is why keep a close eye out on Goldman Sachs Press Releases and 8-K's:
any releases (or even a silence) would speak volumes more about
Goldman's perception of the future than Goldman's Conviction Buy or Sell list.

 

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Fri, 07/17/2009 - 12:03 | 8678 Anonymous
Anonymous's picture

These crooks do not sell anything directly to Main Street unlike real banks but they do suck wealth out of Main Street and put it in their pockets. Modern day pirates.

Fri, 07/17/2009 - 12:24 | 8717 Anonymous
Anonymous's picture

I have often wondered why a guy like Glenn Beck is the only one who discusses these types of things. If the media is managed by chosen conglomerates why would they let Beck discuss this. If GS business behavior is actually common knowledge for industry insiders than why is it coming to light now. What is the other hand of the magician doing "right now"? They want us to concentrate on their old moves. Like bad chess players we the people are just figuring out that our opponet is a hell of player. We need to take action to determine were in the game we really are. Who and what is the IMF all about, Who and what is the Council of Foreign Relations and the Tri-Lateral commission? While we worry about the GS web they are only one or two moves from check mate!!!

Fri, 07/17/2009 - 12:30 | 8725 Anonymous
Anonymous's picture

It is not just Glenn Beck, I heard Rush Limbaugh talk about Goldman Sachs the other day. I guess certain issues are kept in cold storage to be thawed and used later by partisans.

Fri, 07/17/2009 - 18:07 | 9050 dnarby
dnarby's picture

No kidding?  What did he say?

 

Surprised he even brought them up.

Fri, 07/17/2009 - 12:30 | 8726 Anonymous
Anonymous's picture

Exactly, GS are just one player in the whole Wall Street/CFR/IMF/World Bank/Federal Reserve game.

i think auditing the Fed would go a long way to uncover the whole web of deceit.

Fri, 07/17/2009 - 12:04 | 8680 Anonymous
Anonymous's picture

It won't be a stock market drop that gets Main Street screaming, IMHO, it will be something far scarier - an inability to sell our debt to fund our lavish spending. We get a bond auction fail and the Shit Really Hits The Fan. And then the MSM will start looking where all that bailout money went, and realize much of it went into the pockets of GS and its employees. They'll be lucky if they get trial by judge and jury.

Fri, 07/17/2009 - 15:13 | 8878 andy55
andy55's picture

The reality and root issue is that the Whitehouse/UST are working overtime to maintain Chinese relations.  Do you think Geithner and the senior chinese leaders and bankers were talking about Desperate Housewives when he was in China last?  Hint: a week after Geithner was there, China trumptets the world how great US dollars and paper are.  Meanwhile, the second China stops pushing the buy button on US debt, everything will begin to immediately freefall--in essence, China has become our banker. Put another way, we could see a 'recovery' over what could be years in that we restore the previous trajectory of debt-financed spending.  But of course, that's ultimately just raising the precipice, but in terms of trading, it *sucks* to be short until that reversal.

 

I HIGHLY recommend to everyone here to see the Ascent of Money series (a PBS series), now airing.  If you can't wait for it to air, here's the site and a torrent:

 

http://www.pbs.org/wnet/ascentofmoney/

http://verified-p2p-links.com/torrent_details/72107209/ascent+of+money?t...

 

In particular, part 6 discusses Niall Ferguson's 'Chimerica' concept -- VERY well done.  Niall's work here is award-worthy by any measure.

 

P.S.  TD, MS: apologies in advance if you don't want torrents linked--please edit or delete this post if there's concerns.

Sun, 07/19/2009 - 10:33 | 9899 peaceful
peaceful's picture

Look Andy,

Many have been waiting for China to press the sell button--but why hasn't it happened yet?

One of major reasons has to be Mao. You see Mao's whole thesis was that governments are corrupt and crony capitalism is the biggest evil. Well today reform in China has brought about a somewhat better way of life for the country--but progress topped out last year so no wonder the current gov't is throwing money unto the streets. Although reform has helped till now 98% of the country is still piss poor. So unless China continues to find ways to improve life for the overwhelming majority--they are headed for internal political strife. "Our boys" are still in power there--we continue to bullshit them and they continue to buy our bonds. Now these guys desperately need us. We buy their crap plus we will NOT sell guns to their masses. So its a match made in heaven. The math of this relationship has obviously run into problems and the near future almost certainly wll bring further mathematical imbalances. But as of now there are no other alternatives. So as you can clearly see the US can continue to print debt into infinity and those morons will continue to buy it.

The masses do not posses arms so any leftist protest can be immediately squashed. I agree that Niall's has done a great job but the problems that I point to have not yet been addressed by anyone.

Fri, 07/17/2009 - 12:04 | 8681 Anonymous
Anonymous's picture

Why dont u go after Cramer i cant stand seeing his mug on TV anymore, in his book he talks about how he broke all kinds of margin and reg T rules at his hedge fund...enough of that guy allready

Fri, 07/17/2009 - 12:15 | 8706 Anonymous
Anonymous's picture

The "system" requires two sets of people to stay in equilibrium. a) swindlers b) stupid people. Up until let's say the 80s, there was an uneasy equilibrium (a ratio tending to 1) between these two entities. Now swindlers with their computing toys, quants, high frequency gadgets, far exceed the stupid people, relieving their monies by creating an institution of deceit which includes the US government. It has become an unwinnable game. It has become a casino where the house always wins and by some remarkable stroke of luck if the stupid person wins, the casino manager says the machine is broken and you didn't win the gamble really. It is that FUCKED up.

Fri, 07/17/2009 - 12:39 | 8740 Anonymous
Anonymous's picture

i would add to that the rise of 401ks. before, most pension money was managed by professional investors, who, while being outsmarted by wall street regularly (e.g. Bob Citron), at least had the semblance of a clue. now, the pension money is not just managed by less sophisticated investors, but much worse, is blindly plowed into the stock market paycheck after paycheck. how many people change their 401k allocations? how many 401ks have a limited set of investment choices, usually all large cap equity funds? the system is set up to rob working people blind. and now they talk about making 401ks opt-in by default? fucking joke it is.

Fri, 07/17/2009 - 13:00 | 8779 curbyourrisk
curbyourrisk's picture

The 401K is that bottom level of the pyramid scheme (PONZI) the NYSE has become.  The way things are right now, the Government should help out the little guy and allow him to use some of that 401K money he saved away (tax it, but no penalties) . I bet people would be more than happy to pull some money out and pay bills, pay mortgages, pay cars loans.  BUT .....WAIT.... the pyramid scheme....it would collapse.....  Dow at 2000 and S&P to 200, faster than you could say.....

 

 

 

FUCK GOLDMAN.

Fri, 07/17/2009 - 15:30 | 8917 andy55
andy55's picture

> in his book Cramer talks about how he broke all kinds of margin and reg T rules at his hedge fund.

 

Have you actully read any of his books?  If you haven't read 'Confession of a Wall Street Addict', then come back and see if you still want to post that statment.  People who Cramer-bash generally don't listen to him carefully enough: he's about making money, not looking good, and not interested if it's a "bull" or "bear" market.  To his credit, you can't deny he's made the right equity trades in the last several months and continues to do so.  Now, what will make or break him is if/when he calls a top and starts to beat the sell drum hard.  

 

Then you have all the people who evaluate his stock picking by blinding buying and selling his recommendations the next trading day after he makes a call and then show how poor the performance is.  Well, my response to that is that the *given* is to wait for sensical buying and selling opportunities (especially for small caps!), so the people crying wolf there are frankly just wasting everyone's time and for whatever reason are hell bent on destroying the guy. 

 

I'd also say that Cramer and others like him are great for thinking of new trade ideas, and that you have the luxury of picking and choosing from what's presented.  Hey, I'll admit I watch Cramer and once and a while, I'll really like a trade thesis he presents and then I'll wait (weeks or months) for an entry and then find the right exit.  The metrics for that kind of trading have been heavy-set, extra-bold black in my experience. 

 

 

 

Fri, 07/17/2009 - 12:04 | 8683 Hondo
Hondo's picture

They'll just have to up the frequency of their trading (with Gov. support) to keep the market up and the pitchforks at bay.  The spinning will have to increase.

Fri, 07/17/2009 - 12:12 | 8685 channel_zero
channel_zero's picture

The fundamental failure of this and the credit ratings agency media 'dogpile'  is that no one goes to jail.

It is a certainty that securities regulations  were/are being willfully and negligently violated by GS. Wagging a congressional finger just perpetuates the current state of affairs.

What are we if not a nation guided by law?

IMHO, I would throw JPM in with the GS dogs too.

 

So, TD, back to you.  How about adding a storyline that attempts to build a case that can be tried in a court of law?  Pass critical documents  through wikileaks?

Fri, 07/17/2009 - 12:07 | 8686 Anonymous
Anonymous's picture

From the Time Magazine article:

"Officials have also begun to worry aloud whether the Wall Street firms learned anything from the catastrophic financial crisis that was largely of their making or whether they are now returning to the old business of making short-term profits that create long-term risks."

This shows what a stupid fuck Obama is. Did he really think these sharks would commit to a pledge of austerity and being a "force for good"? How the hell did he think we got into this mess? A concern for the public good? These are the same people who brought the financial system to the brink. They are going to change overnight?

This guy is a moron.

Fri, 07/17/2009 - 12:20 | 8711 RatherBFlying
RatherBFlying's picture

Obama isn't a stupid fuck, he is an employee. It will all make sense if you finally give up your delusion that Obama is anything but a tool of Wall St and The Bankers crowd.

Fri, 07/17/2009 - 12:34 | 8731 Jim B
Jim B's picture

Concur  $997,095 from GS during the 2008 election cycle

Fri, 07/17/2009 - 13:16 | 8807 Anonymous
Anonymous's picture

If your number is correct, how amusing that it is a whole $2,905 less than a million. A million would stand out too much? Lol. No he's not bought out! They gave him less than a mill!

Fri, 07/17/2009 - 12:11 | 8689 Anonymous
Anonymous's picture

and as for Joe Sixpack knowing the facts, well: absent a pitchfork billion man march on Wall Street, nothing will really come out of it.

Compare the American public with the French:
Well, it looks like some Nortel employees are going to get some severance for losing their jobs.

After going on strike, protesting and planting a fake bomb, Nortel’s French employees have struck a deal with the company’s administrators, Ernst & Young, over severance pay following a meeting with Industry Minister Christian Estrosi.
http://www.allaboutnortel.com/

Fri, 07/17/2009 - 12:28 | 8721 Anonymous
Anonymous's picture

i disagree, J6P will get it when the Republican house members who voted against TARP and/or Repub hopefuls running against Dem house members who voted for TARP start campaign commercials showing how TARP money was used to line the pockets of GS employees. I personally hate both parties (so keep the partisan comments out of it), but the facts are: 1. the vote for TARP in the House was largely along party lines, with Repubs voting against, 2. the whole House is up for election every two years, 3. these bailouts are going to be a huge topic, especially if unemployment keeps rising through early 2010 (which it will), 4. GS et al make great targets, 5. it is much harder for GS to bribe all 870 people running for the House each cycle than 30-odd running for Senate each cycle. politicians will grab onto any populist topic to get themselves elected, and this will be a big one.

Fri, 07/17/2009 - 12:47 | 8759 Anonymous
Anonymous's picture

It's not that hard to bribe candidates running for the House. First, the needed bribes are smaller per candidate (and probably similar in the aggregate). This not only means less money per candidate, it means that it's much easier to hide the true source of that money.

Second, you don't have to bribe everyone. Most seats are not seriously contested so not much money needs to go into those districts. And some of the opposition pols running in seriously contested districts would be bankster shills anyway so the contributions there would need to be enough to insure election but not secure the pols' votes.

Fri, 07/17/2009 - 18:11 | 9053 dnarby
dnarby's picture

If they line up behind Ron Paul, we should be OK.

Fri, 07/17/2009 - 12:11 | 8692 Anonymous
Anonymous's picture

Can we get a list of the companies that use GS for debt and equity offerings, and M&A advice, and boycott those companies? I realize they make a lot of money trading for themselves, and from selling government debt, but some of the money is made from companies that the average unemployed person has to deal with every day. Maybe squeezing their customers is the only way to squeeze them, since it is clear our elected officials are just going to funnel more and more money into them.

Fri, 07/17/2009 - 12:17 | 8707 ptoemmes
ptoemmes's picture

A recent Krugman Op Ed seems to apply here.

http://www.nytimes.com/2009/07/17/opinion/17krugman.html?partner=rssnyt&...

 

"

...

First, it tells us that Goldman is very good at what it does. Unfortunately, what it does is bad for America.

Second, it shows that Wall Street’s bad habits — above all, the system of compensation that helped cause the financial crisis — have not gone away.

Third, it shows that by rescuing the financial system without reforming it, Washington has done nothing to protect us from a new crisis, and, in fact, has made another crisis more likely.

Let’s start by talking about how Goldman makes money.

...

 

Pete

 

Fri, 07/17/2009 - 12:17 | 8708 Anonymous
Anonymous's picture

Tyler,

Small misprint:

CBC (Canadians), not CBS Radio.

Otherwise, great post...

Fri, 07/17/2009 - 12:19 | 8709 Anonymous
Anonymous's picture

Should Cumon go after Goldman?

Fri, 07/17/2009 - 12:19 | 8710 Anonymous
Anonymous's picture

Cuomo is an idiot.

More importantly, it is a fair point that Goldmans don't have the 'public service' claim that retail banks do. It's a nonsense argument but politicians will realise that no voters will get hurt by punishing Goldmans.

Fri, 07/17/2009 - 12:35 | 8733 Anonymous
Anonymous's picture

good point. if the govt goes after GS, what threat do they have? "we are going to stop our HFT program?" Dimon and his crew at least pretend to help out main street, you can see a lot of Chase branches across the country. Goldman helps themselves. they provide a lot of money to the politicians, but can only deliver so many votes. my bet is they go down sometime before the next election campaigning starts really ramping up. full public inquiry into the AIG payouts, or something like that.

Fri, 07/17/2009 - 12:30 | 8724 Anonymous
Anonymous's picture

Whenever the media makes anything even remotely resembling a unified shift in direction, my red flags start to go up. Anyone else think GS is going to take the fall for something?

Fri, 07/17/2009 - 14:07 | 8840 Anonymous
Anonymous's picture

Red flags? I WANT Goldman to take the fall and Lloyd Blankfein imprisoned along with as many other GS players as we can lay our hands on.

Fri, 07/17/2009 - 14:13 | 8847 Anonymous
Anonymous's picture

Well that goes without saying, but that doesn't mean someone else wouldn't be screwing us over somehow in the process, as well.

Fri, 07/17/2009 - 14:49 | 8882 Anonymous
Anonymous's picture

it would take years for someone else to set up the web of deceit GS has - they have been working on it for decades. the only person close would be Dimon, but JPM is worlds behind.

Fri, 07/17/2009 - 12:32 | 8728 lizzy36
lizzy36's picture

mid terms in 14ms.

unemployment above 11%-11.5%  and record GS bonus's do not coexist easily (think tom crusie and katie holmes).

is it wrong that i almost get high watching this whole thing play out (plus reading Tyler's take on the play out)?

Fri, 07/17/2009 - 12:35 | 8734 Undertaker (not verified)
Undertaker's picture

Time to bury these bastards, it gonna have to be a closed caskets because of the stench.

Fri, 07/17/2009 - 12:36 | 8736 lizzy36
lizzy36's picture

lol - CIT in talks with JPM and GS for short term financing !

Fri, 07/17/2009 - 12:38 | 8739 Anonymous
Anonymous's picture

health care will be no diffrent than cap & trade and the nationalization of credit and autos ; a Goldman Sachs orchestrated shake down for money and power.

2 million people didn't die for my freedom and my absolute right to representative government with their expectations that I would be silent in the face of tyranny , how 'bout you?

http://www.ronpaul.com/on-the-issues/audit-the-federal-reserve-hr-1207/

Fri, 07/17/2009 - 12:42 | 8748 Anonymous
Anonymous's picture

agreed, my ancestors didn't fight the Brits so I could be a slave 230+ years later. this shit is going to come to a head, real soon.

Fri, 07/17/2009 - 12:57 | 8773 Miles Kendig
Miles Kendig's picture

Goldman Sachs will be the vehicle by which the administration will claim subversion by the markets of American ideals.. and of course.. their economic policies come 2010 if the Paulson/Rubin/Blankfein promised miracle fails to materalize on schedule.  Perhaps I can contemplate that the wonders of the NSA could be focused upon the titans of Wall Street and their associates in government.  Push come to shove and the government will sacrifice anyone to keep power.

Fri, 07/17/2009 - 13:23 | 8812 Anonymous
Anonymous's picture

Jam the SP to 1200 over the next couple months will surely quiet the sheeple.

Fri, 07/17/2009 - 14:50 | 8883 Anonymous
Anonymous's picture

not gonna happen, we have way too much debt to finance. s&p 1200 will spike interest rates, not what BB wants.

Fri, 07/17/2009 - 13:37 | 8822 Anonymous
Anonymous's picture

Read the section titled the pessimistic outcome of "the creature from jekyll island" the only thing missing at this point is the mass protests.

Rollerball, 1984 etc.

MS

Fri, 07/17/2009 - 14:58 | 8892 Anonymous
Anonymous's picture

yes, highly recommended, the author pegged all this happened just about spot on - bank runs, MSM giving rosy forecasts they no are not correct, Fed and Treasury trying to tell everyone "all is good", printing money like crazy.

Next? hyperinflation? retirement accounts seized?

i expect the Bancor to be rolled out this time next year.

Fri, 07/17/2009 - 13:51 | 8833 Anonymous
Anonymous's picture

Tyler,
Could you please post about eight consecutive articles on, FASB, structured finance, anything quant, etc. to shake out the wheat from the chaff.

Fri, 07/17/2009 - 16:00 | 8955 Anonymous
Anonymous's picture

I think stay in their shell and keep their mouths shut, will be Goldman's play.

And why not? By the time it all comes crashing down, the average GS trader will be able to move to the Caribbean and will never need to work another day in his life.

I'd wager money that the GS troops are sitting at their desks, laughing at all the media hoopla while they think about how to spend their upcoming bonus checks.

Fri, 07/17/2009 - 18:14 | 9055 dnarby
dnarby's picture

Caribbean?

 

Too small.

 

They'll need to head for somewhere third world and landlocked, probably SA.

Fri, 07/17/2009 - 16:16 | 8980 Ned Zeppelin
Ned Zeppelin's picture

GS/JPM/GM/BOA: TOO BIG TO FAIL

CIT: TOO SMALL TO BAIL

where's my bumper sticker

 

Sat, 07/18/2009 - 01:33 | 9250 Anonymous
Anonymous's picture

Somebody @ whitehouse was instrumental in Paulson getting the treasury job and the ethics waiver - who ?

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