Goldman's Roadmap To Losing All Credibility... And A Propaganda-Based Utopia
We have already had our share of laughs at Jan Hatzius selling out his credibility to Goldman's bigger picture order flow creation agenda, whereby his Wednesday upgrade of the economy ended up being (certainly at least in the short term) a complete mockery, after disappointing Case Shiller results, a declining ISM, whose Inventory less New Orders differential virtually guarantees a double dip, a worse than expected Initial Jobless Claims (which next week will be revised to an even worse number), a further downward revised already disappointing Durable Goods number, and last but not least, the worst miss to Non Farm Payroll expectations in years, indicated that his "revolutionary" forecast couldn't be further from the truth, is driven entirely by some secondary motivation, and that even the supreme chancellor of the Inkjet Federation is now threatening to print more linen yet again as the economic deterioration worsens. Luckily, the Goldman strategist has a sense of humor, and he himself admits the irony associated with his very untimely flip: "It had to be: in a week when we upgraded our forecast, the data have been somewhat soft. The two biggies? the Institute for Supply Management's (ISM's) index of manufacturing and the employment report? were both weaker than expected in November." Actually, it wasn't "somewhat" and there were many more than two (see above). Yet what is inexcusable is that Hatzius now has become a version of CNBC-lite, advising clients to focus on the facts that support his view and discard those that detract from the optimistic outlook: "Forecasters dismiss data at their peril, but there are good reasons not to worry...So not to worry-pay attention to the data, but don't let a report or two derail the forecast." As this is Jan's first foray into what is now open media propaganda we will give him some advice: please stick to what you are good at - providing objective advice. Else, CNBC's ratings are a brilliant case in point of what happens when one loses all credibility and become nothing but a mouthpiece for the establishment. Then again, there are certainly third vacation home, second yacht, Netjets timeshare, and last but not least, Ponzi perpetuation, considerations at hand, so who are we to give Jan any advice...
For those who wish to have a few laughs at Jan's expense, below is Goldman's full roadmap to losing all credibility, or, as the firm calls it, Above-Trend growth.
- advertisements -