S&P Downgrade Warning: Goldman Sachs Damage Control Part 2

Tyler Durden's picture

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writingsonthewall's picture

No seriously now - stop messing about.

Fuck Goldman Sachs - who the fuck do they think they are?

Troll Magnet's picture

blaspheme!  they're doing god's work, you know?

writingsonthewall's picture

That cue ball blankenfiend needs a good beating. Where is divine intervention when you need it?

rocker's picture

But, but, but, but.......Isn't he God's angel...........He told me so.

spiral_eyes's picture

we're simmering along nicely through default by debasement, to china pulling out of treasuries, the fed stepping in as monetizer of last resort, full hyperinflation, the death of the dollar and a new world order.

ZeroPower's picture

GS Damage Control - a nice preemptive move for their eoy 2011 S&P target downgrades. Soon...

TexDenim's picture

The point of S&P is that newspaper readers in Peoria are now aware of what GS and the rest of us have known since QE2 began. It's a question of news management, not financial management. Not surprised that El Erian and GS are running their printing presses overtime.

knukles's picture

"Not surprised that El Erian and GS are running their printing presses overtime."

The lawyer in the financial mystery novel intones; "Your honor, we have signed confessions from the parties of collusion, misuse of confidential material non-public inside information, front running, breach of commercial best effort fiduciary standards, fraud, grand larceny and misrepresentation. 

Forgiven's picture

Really piss them all off.  Buy Silver.

Bubbles...bubbles everywhere's picture

Great! They are comparing us to the UK. We are truly fucked.

sangell's picture

Average maturity on British government debt is 14 years... they've locked in their interest expense ours has no where to go but up!

Bubbles...bubbles everywhere's picture

If you ever lived in the UK, you would now what I mean.

On the other hand, it's very comforting to know we fall somewhere between soon-to-be-wiped-out Israel, insolvent Spain and radioactive wasteland Japan. Good company indeed. 

Re-Discovery's picture


QE/CD (Currency Devaluation) Infinity confirmed.  Rickards nailed this, but as TD established, it won't nearly be enough. The Fed is scared to death, and so we all should be.

sangell's picture

Obama should have done what Reagan did. Take the pain in the first years of your term and get beaten up in the midterm election but by the time you are running for re-election the economy will, hopefully, be improving and people will give you credit for doing what needed to be done.

moneymutt's picture

oh please, the econ improved for Reagan because the policies implemented by Volcker at end of Carter years, which hurt Carter immensely, finally yielded good results by end of Reagans first term. Everyone knew higher interest rates wold hurt for several years, but then inflation beat back and economy recovered. Pres have little short term power over economy. Bush 1 and Clinton did put us on track for surplus budget, rather than defecits because they raised taxes but even the good long term trend was quickly reversed in just a few years of W admin and of course a bit of a recession at beginning of 2000. Prez and Congress can effect budget, but general economic cross slower cycle over which only Fed has powerful control

Chuck Walla's picture

!. Obama is just not made that way. Nor was he educated that way. He is conversant in only one political/economic theory and his "new" ideas are rooted in 150 year old philosophy. He simply does not know anything else.


2. Votes cost a lot of money when your party is a one note samba. Rich bad, poverty good(unless you're in the club, of course). Daddy take care of you just call you're Ol' Uncle Sugar. He be payin' while you be layin'.


3. Soros didn't pay for a thinker, he paid big for a tool.


To conclude: Sugar Daddy politics and freedom are mutually exclusive.

TruthInSunshine's picture

US Banks Reporting Phantom Income on $1.4 Trillion Delinquent Mortgages

I posted this link a few times to demonstrate one thing - 3 years ago, this would be thought impossible.  Now, it's probably only slightly surprising to most. And this tells us that we are in bizzaro land, no? How else would one explain the ability of major banks to legally report non-payment of loans as payment of loans?

Okay...on to the broader topic.

IMO, throw all ratings issues, central bank intervention, consumer sentiment, blah blah blah aside.

Deleveraging is the one key theme that will continue. Governments will continue to leverage up, whether by repairing bridges, painting over grafitti, buying fighter jets - whatever - and it will all be like pissing into a strong wind as consumers, who drive roughly 70% of all economic activity, continue to deleverage.

Bernanke is finding out that he is not the wizard some think he is, in trying to trump the natural market laws of supply/demand based on price. He found he could temporarily skew/offset the markets full impact, but that to do so at the margin and even temporarily required an incredible expenditure of resources and ammunition that only came back or is in the process of coming back to wreak havoc, as market distortions create future tsunamis (sometimes with nuclear/radiological consequences).

mendigo's picture

in short - these guys are dependant on qe to prop-up the markets

they will be just as dependant (likely more so) in 2013

gordengeko's picture

..."by 2013 we will have much bigger issues on our hands."

What exactly are you getting at there TD??:)

(Seti finds massive alien fleet heading towards earth)


TruthInSunshine's picture

First laugh I've had in at least a day.


DavidC's picture

What policy credibility ?! There isn't ANY!


Commander Cody's picture

Most of the talk on MSM regarding fiscal deficit reduction is focused on entitlements.  Will no one bring up the large impact on the deficit that eliminating subsidies to industry will achieve?  I guess that's a non-starter for the fascists in control.  How about a fair tax code?  That will, most likely, mean higher rates and fewer deductions for the middle class while additional loopholes will be created for the wealthy.  Its only a matter of time when I will be completely off the grid.  Wish you all well.

Urban Redneck's picture


"lock box"

"debt ceiling"


TwoShortPlanks's picture

Treasury is using S&P downgrade to whip Congress into a Yes, that's all. It's been fabricated...yet still real at the same time...how does that work?!