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Goldman Sachs Rules The World? Have You Looked At Their Stock Price Lately??

EconMatters's picture




 

By EconMatters

Independent trader and professional speaker (according to the bio page on his web site) Alessio Rastani caused quite a stir this morning when he went on BBC and said the following:

".... the market would crash as it was now ruled by fear and that all the big players in the field know that the market was toast.

This is not a time right now for wishful thinking that governments are going to sort things out.  The governments don't rule the world, Goldman Sachs rules the world."

Guess working for Goldman Sachs (GS) is probably every trader's dream gig.  And Rastani does not seem to have any GS association (our Google query did not turn up much about the man at all).  So that probably explains at least in part his apparent blind idolization of Goldman Sachs.

 

Since he is supposed to be a trader, I'm not sure if he's looked at GS stock price lately.  Quite simply, if Goldman rules the world where governments around the world fail, then GS stock price should not look this ugly -- down almost 50% -- in the past 24 months:

 

Chart Source: Yahoo Finance 

 

In the same BBC interview, Rastani also said,

"Personally, I've been dreaming of this moment for three years. I go to bed every night and I dream of another recession."

Here are some of our thoughts on that:

  1. He needs to get out more as there are many other dreams and goals to be had in life, and 
  2. Be careful what you wish for, because you might get it.  

 

The last financial crisis we had in 2008 brought all the Wall Street big banks, including Rastani's idol and God's Worker--Goldman Sachs, to the brink of total destruction (see the chart below with GS stock price dip in 2008) if not for the Fed and the bailout funded by the American taxpayers money.     .  

 

Chart Source: Yahoo Finance

 

So no, the odds are extremely good that Goldman will NOT rule the world should there be another financial crisis and crash, and U.S. taxpayers could really call it 'God's Work' if GS and other Wall Street banks would not require yet another bailout.

 

As for Rastani's advise to move money into treasuries and dollar, it is a little late for that as treasuries and US dollar have become overbought, partly from traders front running theFed's Operation Twist.  That means right now is unlikely a good time to jump into that trade.

 

On the other hand, with his the-end-of-world-crash prediction, Rastani seems to imply shorting the market would "make a lot of money from this".  However, the markets are already off roughly 25% off their highs, then amid earnings momentum in the tech sector (e.g. Apple, Amazon), and that 2012 is an election year where Washington would throw everything including the kitchen sink into the economy, we are not sure shorts would necessarily come out ahead.

 

The moral of the story is that it looks like talking gloom, doom and "market crash" on TV is the surest way to get the 4-minute fame and get quoted across mainstream media regardless of the person's credentials and/or if the statement even makes sense.

 

Last we checked, Google search on "Alessio Rastani" turned up 5,280 results in 0.08 seconds, and one related post at Zero Hedge has gotten over 77,000 hits with 666 comments in less than 12 hours.  

 

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Fri, 10/21/2011 - 11:28 | 1797231 maddogs
maddogs's picture

apparent blind idolization of Goldman Sachs- Me thinks you missed the tounge in cheek, ref to it's connections and thus power to affect,,,,,,,,,,,,,hardly a statement of admiration.

Tue, 09/27/2011 - 09:04 | 1714499 SwingForce
SwingForce's picture

I think he meant "Goldman's RULES (dominate) the world (mindset on trading)".  Just do what you want, operate with impunity, screw your clients... Nothing matters but the size of the bonus pool.

Tue, 09/27/2011 - 08:49 | 1714443 whaletail
whaletail's picture

I despise you EconMatters. Figuring that Rastani idolizes GS because he mentions them just to bolster the argument is ad hominem. Check out Bruce's piece posted yesterday comparing traders to psychopaths for some reflection. Or, just go fuck yourself. 

Tue, 09/27/2011 - 08:20 | 1714353 no2foreclosures
no2foreclosures's picture

Econ-Does-Not-Matters.  Do these guys and gals work for Goldman Sucks?  Have they heard of Henry "Hank" Paulson, Jr.?  How about Robert Rubin?  Let us quote Matt Taibbi in his article titled, "How Goldman Sucks Took Over the American Economy":

By now, most of us know the major players. As George Bush’s last Treasury secretary, former Goldman CEO Henry Paulson was the architect of the bailout, a suspiciously self-serving plan to funnel trillions of Your Dollars to a handful of his old friends on Wall Street. Robert Rubin, Bill Clinton’s former Treasury secretary, spent 26 years at Goldman before becoming chairman of Citi-group – which in turn got a $300 billion taxpayer bailout from Paulson. There’s John Thain, the asshole chief of Merrill Lynch who bought an $87,000 area rug for his office as his company was imploding; a former GoIdman banker, Thain enjoyed a multibillion-dollar handout from Paulson, who used billions in taxpayer funds to help Bank of America rescue Thain’s sorry company. And Robert Steel, the former Goldmanite head of Wachovia, scored himself and his fellow executives $225 million in golden-parachute payments as his bank was self-destructing. There’s Joshua Bolten, Bush’s chief of staff during the bailout, and Mark Patterson, the current Treasury chief of staff, who was a Goldman lobbyist just a year ago, and Ed Liddy, the former Goldman director whom Paulson put in charge of bailed-out insurance giant AIG, which forked over $13 billion to Goldman after Liddy came on board. The heads of the Canadian and Italian national banks are Goldman alums, as is the head of the World Bank, the head of the New York Stock Exchange. the last two heads of the Federal Reserve Bank of New York – which, incidentally, is now in charge of overseeing Goldman – not to mention …

http://www.prosebeforehos.com/article-of-the-day/06/29/how-goldman-sachs...

Tue, 09/27/2011 - 08:53 | 1714466 anony
anony's picture

Thanks for posting this and I hope just as a matter of course, you will do so every two weeks, to keep the NAMES of this front organization public, if only for consumption here, but with great hope  it goes viral.

Tue, 09/27/2011 - 08:02 | 1714292 Gene Parmesan
Gene Parmesan's picture

Rastani's idol... Goldman Sachs 

Not sure how you got this from the interview.

Tue, 09/27/2011 - 07:46 | 1714234 LynRobison
LynRobison's picture

Rastani described the problem correctly: we are headed for a crash and GS and the rest of the banking cartel rule the world. To assume that this would be reflected in their stock price is stupid. Rastani missed the mark on the solution. The guy is a paper-based trader, so treasuries and the USD are the best he can come up with for safe havens. Treasuries and the USD will ultimately get smashed too. Physical PMs, foodstuffs, water, guns, ammo and teaming up with like-minded people are the real safe havens.

Tue, 09/27/2011 - 09:35 | 1714618 richard in norway
richard in norway's picture

you could see that he was thinking and proably thought that there was a chance that people would take his advise. so he played itt safe, as he knows that if a load of sheeple start shorting the market they will get taken to the cleaners

Tue, 09/27/2011 - 07:27 | 1714207 blueridgeviews
blueridgeviews's picture

Compare this chart of Goldman Sach's market value to that of say any gov't in the western world. I am sure a chart of the US would look the same.

Tue, 09/27/2011 - 07:08 | 1714160 JuicedGamma
JuicedGamma's picture

Hey that's part of the plan, trash the stock into bonuses and then shoot it to the moon. Goldmans is no dummies.

Tue, 09/27/2011 - 06:55 | 1714133 Ellesmere
Ellesmere's picture

To echo NetDamage....what is this article doing on ZH?

Substitute Gold for Goldman and you have a typical kool-aid article refuting "gold bugs" (said with a sneer).

All fluff...

As a Canuck, I note that Dimon has now lambasted BoC's Mark Carney after taking on Bernanke. Take's a mob boss to do that...

Tue, 09/27/2011 - 06:54 | 1714130 yabs
yabs's picture

econ matters is the worst blog referenced on this sikte

WE ALL we lkl most of us dream thr same thing as this Trader at least i do

I cannot wait for this PIG system to collapse

the only thing that scares me is that it continues

He stated facts and di not say he idolised GS, he just said trhey rule the world and given the bailouts and their calls for twist and QE which always comes its easy to see

tghat they do rule the worldf along with JPmorgan and other TBTF

how can this fact escape youWhat their stock price shows is that they are losing control and thats why I and many others wish for a collapse

thats why I am on this sikte

what f*cking brain dead planet are you from?

plant NAIVE/brainwashed?

Tue, 09/27/2011 - 06:54 | 1714129 yabs
yabs's picture

econ matters is the worst blog referenced on this sikte

WE ALL we lkl most of us dream thr same thing as this Trader at least i do

I cannot wait for this PIG system to collapse

the only thing that scares me is that it continues

He stated facts and di not say he idolised GS, he just said trhey rule the world and given the bailouts and their calls for twist and QE which always comes its easy to see

tghat they do rule the worldf along with JPmorgan and other TBTF

how can this fact escape youWhat their stock price shows is that they are losing control and thats why I and many others wish for a collapse

thats why I am on this sikte

what f*cking brain dead planet are you from?

plant NAIVE/brainwashed?

Tue, 09/27/2011 - 06:27 | 1714089 trx
trx's picture

Now, let me see.... Here we have a young aspiring professional (in the 80's we used to call them "yap's" or "yuppies"), working in the financial industry, who acctually admits that he's trying to do the best job he can (whitch happens to be making money) in order to survive the economic downturn, pretty much like anyone else at the moment...

 

HE SHOULD BE ASHAMED OF HIMSELF !!

Tue, 09/27/2011 - 06:20 | 1714076 Optimusprime
Optimusprime's picture

I am suspicious of any defense of Goldman Sachs, no matter how oblique.

Tue, 09/27/2011 - 08:51 | 1714458 whaletail
whaletail's picture

I can't green arrow this comment enough. Thank you for concisely writing my reaction for me.

Tue, 09/27/2011 - 06:36 | 1714074 BrokenCipher
BrokenCipher's picture

The EconMatters article is one of the more interesting misreadings of Rastani's remarks; its author seems terrified to the point of suffering from a certain near-hysterical blindness....--  I would go so far as to say that the EconMatters article is far more obliquely instructive and interesting than Rastani's comments in themselves, which, after all, remain as little more than common sense....--

Tue, 09/27/2011 - 05:27 | 1714039 anony
anony's picture

Your attempt to make Goldman Sucks look less powerful is pathetic.

The price of a stock is no indication that a company has power----or IS---(mr. Clinton) the government.

Naive to say the least, and propaganda if you really do know that Sucks is omnipotent.

No doubt the insiders at Sucks have been shorting their own shares gaining that 50% that came at the expense of other suckers---- who own the shares ----did not. 

Tue, 09/27/2011 - 04:38 | 1714023 Hunch Trader
Hunch Trader's picture

GS probably makes money shorting its own stock...just another form of pilfering from customers.

 

Tue, 09/27/2011 - 04:58 | 1714027 MarketTruth
MarketTruth's picture

Didn't Vampire Squid Goldman Sachs make money selling "shitty deals" to their clients? Why yes, yes they did! Anyone who does business with GS or buys their stock deserves the "shitty deal" they get. Everyone in the industry knows GS is the 600 lbs gorilla who will screw their own mothers no matter what the law may be... for a few pennies more of profit.

GS screwed the European Union via helping Greece commit massive accounting fraud. How many more scams and accounting fraud schemes has Goldman Sachs committed that we do not know about (yet)?

Also, GS lied that it did not need money/loans from the US Government, then months later it comes out that GS indeed needed funds desperately to stay in business (note i said stay in business, i did not say stay solvent... there is a big difference).

Here is GS admitting selling "shitty deals" to their customers

www.youtube.com/watch?v=gLx2Xc1EXLg

Bottom line: Goldman Sachs is a company filled with crooks.

Tue, 09/27/2011 - 03:59 | 1713997 TK7936
TK7936's picture

Really ? Who freackin sabotaged Greece ? That was GS. Im tired of Banks thinking they can play emperor. In my Book this Bank should have been nationalized along time ago.

Tue, 09/27/2011 - 03:42 | 1713983 Clint Liquor
Clint Liquor's picture

I thought the plan for Goldman was to run the share price to nothing and then go private. Did something change?

Tue, 09/27/2011 - 03:39 | 1713978 NetDamage
NetDamage's picture

What is the purpose of this article?

Tue, 09/27/2011 - 08:03 | 1714302 rwe2late
rwe2late's picture

 ZH editors are correct to publish contrary views and have them subjected to critique by ZH readers and commentators.

There is benefit to understanding what the opposing viewpoints are, even if one doesn't agree with them.

Tue, 09/27/2011 - 08:56 | 1714474 rwe2late
rwe2late's picture

 On a related note,

ZH is one of the few forums where one can find an actually open discussion of issues and events.

To those who may disagree: I suggest going over to a mainstream site such as Huffingtonpost and attempting to get published comments that disagree with the editorial viewpoint past the "moderators".

Tue, 09/27/2011 - 03:07 | 1713948 MFL8240
MFL8240's picture

Hope they fuckin collapse, hate that tribe!

Tue, 09/27/2011 - 03:00 | 1713940 whirlybird rules
whirlybird rules's picture

Think these guys achieve their personal wealth via the price of their stock?! You're kidding- right???

Tue, 09/27/2011 - 02:36 | 1713920 jballz
jballz's picture

I am sure the largest holder of Goldman credit default swaps will be Goldman, when they decide to implode the company and take it private again. They will be short out the wazoo as well, with a mountain of $5 put options bought from Citigov to boot.

But that comes after the ECB hands over the titles to western europe.

 

priorities...

Tue, 09/27/2011 - 07:40 | 1714233 11b40
11b40's picture

....and you get the prize, jballz.  When the time is right, they will go private...and it won't be when the stock is hitting all time highs.

Tue, 09/27/2011 - 06:48 | 1714115 dcb
dcb's picture

Neew head ecb, former goldman guy. what were they thinking

Tue, 09/27/2011 - 02:15 | 1713903 iamse7en
iamse7en's picture

The last financial crisis we had in 2008 brought all the Wall Street big banks, including Rastani's idol and God's Worker--Goldman Sachs, to the brink of total destruction.

 

Haha. Yeah they have no power at all. The wonderful, all-powerful government saved them. The government is the master. Riiiight. You've been had, EconMatters.

Tue, 09/27/2011 - 01:20 | 1713860 Malachi Constant
Malachi Constant's picture
  1. I think he was on some sort of a CNS stimulant while on air.
  2. If it rules the world, GS couldn't care less about its price, as no one would be able to sell or buy it. All rules are theirs to twist, mock and ignore. The chart does not refute the claim.
Tue, 09/27/2011 - 00:50 | 1713832 Guy Fawkes Mulder
Guy Fawkes Mulder's picture

What kind of an idiot thinks stock price means anything?

Just about every sentence in this piece reads like someone with their head up their ass.

I guess Mainstream Financial Economic Kool-Aid causes brain damage before it actually kills you.

Tue, 09/27/2011 - 00:14 | 1713808 Zer0henge
Zer0henge's picture

The comment came from a low hanging fruit Afrikanzer who couldn't hack it in the Jew World.  Of course he thinks his betters rule the world. 

Mon, 09/26/2011 - 23:58 | 1713787 Ye Ye
Ye Ye's picture

Certainly risk-off is near-term crowded, and the Asian session is showing some vigor tonight.  However the medium term for the US looks like a neutered Fed and a highly pro-cyclical downturn in government spending at the local, state, and federal levels.  Let the dead cat bounce and then do what he says, seems sensible.

Tue, 09/27/2011 - 08:36 | 1714404 Pladizow
Pladizow's picture

Article = Idiodic correlation!

Do NOT follow this link or you will be banned from the site!