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Maybe Third Time Will Be The Charm: Goldman Capitulates On Second Failed EURUSD Reco; New Target Set At $1.35
Less than a month after Goldman braved the choppy and hypervolatile waters of pillaging and raping its biggest clients (aka tactical FX recos), with first a buy EUR, then sell EUR reco, the firm has captulated, and is calling for a $1.35 target: essentially saying it has no freaking clue where the EUR will go next.
Changing Our EUR/$ Forecasts
The Euro will likely remain stuck between two largely offsetting forces. Cyclical acceleration in the Eurozone and deceleration in the US, external balances and the outlook for earlier monetary policy normalisation by the ECB all suggest upside risks for the Euro. But on the other hand, the uncertainty about Greece and, more importantly, about the institutional set-up of the Eurozone will command a high fiscal risk premium for the foreseeable future. We have revised down our 3mth and 6mth forecasts to the same level as our old 12mth forecast, 1.35 flat. Other forecasts are affected through the Euro crosses.
And even as Goldman clients lost a boatload, Goldman being on the other side of both these trades, made mint. But at least these clients have Redi, Sigma X and Sonar and can see order flow from a mile away, right? That should promptly offset all losses.
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This public airing of GS's dirty laundry is turning into a trend of unusual proportions. Every should immediately check their wallet and pocket books because you're about to be screwed. Royally, I might add.
If GS told me the sky was blue, I would immediately wonder which side of the trade they were trying to get me to take because the information is obvious and thus useless. Which in and of itself is its own version of psychological warfare by the King of Squids.
You've got to be kidding and these guys are some of the best in the business. There is a moral to this story- Don't trust anybody with your money, learn to invest for yourself.
Rick64
We are being played. GS doesn't admit to these types of errors in such a public manner unless they see some type of advantage for them. It's not about the actual admission, it's about the fact that they are admitting anything in this manner. Look more than one or two moves ahead on the chess board. I don't know what they're up to but they're not stupid people by any stretch of the imagination.
Don't watch the hand that the magician is waving around. Watch anywhere else but the hand. The hand is the distraction.
I am aware of that, but undoubtedly some of their customers got ripped off by a firm thats touted to be one of the best. I know that they probably traded the other side of their announcements. Don't worry I don't listen to their advice at all.
Sorry, wasn't trying to lecture but just to take the big picture view. I shouldn't have assumed you didn't understand.
I've understood for years that GS is a den of thieves. Anyone who deals with GS is expecting to be able to grab (or be cut into) a small slice of the proceeds of the thieving (which was what most people were thinking when dealing with Madoff) or they are hopelessly ignorant and are the next greater fool.
Since the game is on and has been for at least 20 years, with regulators nearly always AWOL, I have no sympathy with the greater fool who either thinks they can outsmart GS or play with GS. There is a difference between ignorant and willfully ignorant and the vast majority of the people in this world are willfully ignorant. They chose not to see. I can empathize with them, try to warn them, even feel a little sorry for their self destructive behaviour. But they don't wish to see the world as it is and I have no pity for them nor should I have to make them whole when they are ripped off.
No harm done. I appreciate your insight.
From the story, it seems The Squid wants more American deceleration... perhaps they will now back the short side of the equity trade and at the same time possibly help Uncle Ben keep his financing costs down.
They gotta save face as the Master of the Universe right?
Dear Goldman --
Thanks for setting me up on that EUR/USD trade. I made out like a pauper.
Your debt slave for life,
John Q. (Retail) Investor
I imagine (emphasis on imagine) a future when money managers cannot have prop desks, because of the conflict of interest.
Okay, a weak April Fool's try.
They are pretending to be fallible, when in fact they are laughing all the way to their own vault with arm fulls of loot
The GS Ripper rapes again....and again....and again
Reminds me of my old flame - like throwing a hotdog down a hallway. A bad screw every time.
Hahahahaha!!! Some nice, appropriate Easter humor!
Could Goldman be right this time?
Actually I agree with this.
"The uncertainty about Greece and, more importantly, about the institutional set-up of the Eurozone will command a high fiscal risk premium for the foreseeable future."
Oh Great Squid, I love thee so much, please relieve me of my hard-earned cash!!
Fantastic, thanks for the update, I will buy 1.35 calls and puts to make money this time.. GS is so nice..
Remember Goldman's call of oil going to 25 when it was at 35 and oil going to 200 when it was at 130 spiking to 140 before collapsing to 35 via bankrupted oil firm/Bellicose Israeli General/Iranian counterparts and general manic endowment funds and OPM fundies slushing around?
How about right around Katrina where the call was oil to 150 when it was at 70 going to 40?
They don't call it a conviction buy/sell list for nothing.
These guys will front run themselves from a parallel/future/past reality if they can get away with it.
Wonder why? Maybe it has to do with their stellar ability to generate profits quarter after quarter way about the averages of their competitors?
Ring a bell?
Madoff with the money via bonuses?
How long before Goldman's massive level 3 losses(all their bad bets swept under the rug from their inception) are uncovered?
http://funy1.blogspot.com/2010/03/whose-leverage-is-more-worthless-jp.html
Will that be the final straw that kills the Golden Goose that was Wall Street? When the most succesfull "bank" turns out to be the second longest running Ponzi scheme, second only the the fractionally reserved paper asset monstrosity that is the global economy?
haha, any technical analysis what-so-ever could tell you those shorts were going to be stopped out! EURUSD has been trending up since mid-day (EST) March 26th!!! There was a a slight retracement down to 1.3380-ish from about 1.3530 after it popped 1.35, but it's gone up 300 pips since. Looking on the daily charts, next target is probably 1.3611, and then 1.3740. I trade spot though, so be careful with placing calls that high; however they wouldn't be unwarranted. Your own due diligence would have easily saved you a call to Goldielocks to speak with the 3 bears. The porridge over there is always too hot or too cold, with Goldielocks chugging down the pilsner out back; anyone else coming to the house gets raped and eaten by the bears.
Anyone that trades Forex on recommendations is insane. And soon to be broke. Doesn't matter who is making the recommendation, the leverage is too great to be wrong for more than a few days.
Unless you are a GS client, this is funnier than the Flintstones!
It really blows my mind how ignorant the "faux rich" really are, especially managing their money. These people are normally 2nd or 3rd gen. "faux rich" with a net worth under 5 million. Most are old school captialists with a penchent for specialization. Ergo, "...as a lawyer, I shall concentrate on the law, and turn a blind eye to all that is economics and finance!" They have JP Morgan, Goldman, or their "dear friend" from the club manage their excess capital, in hopes of jumping the ladder into legitimate wealth (not having an occupation, watching your bank account swell under its shear largesse).
So the "faux rich" turn a blind eye to the state of things, as they assume that our finance institutions are just as "bright and cunning" as they are in their service occupation; and the middle-class and poor are completely in the dark, completely incapable of recognizing or deconstructing what is truly going on. What a magnificent illusion they have up there on Wall St.
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