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What Was That I Heard About Squids Raising Capital Because They Can't Trade?
Bloomberg reports Goldman Traders Lost Money 21 Days in 3Q:
Goldman Sachs Group Inc. (GS),
which relied on trading for 62 percent of revenue so far this year,
recorded losses from that business on 21 days in the third quarter, the
most since the fourth quarter of 2008.
The
firm’s traders lost more than $100 million on one of the days,
according to the New York-based company’s quarterly filing with the
Securities and Exchange Commission. They produced more than $100 million
on nine days out of 64 total days in the quarter that ended Sept. 30,
the filing showed.
Well, you guys know where I stand on this, and I have warned you ad nauseum...the Squid Can't Trade!
Learning to fly with tentacles instead of wings may prove difficult for the Squid!
Note: Subscribers can download the GS 3rd quarter review with the updated valuation opinion here
Goldman Sachs Q3 update Final (482.35 kB 2011-11-03 03:03:51)
In our Goldman Sachs update note, “Show me how to trade”
(August 2011), we challenged Goldman Sachs’ ability to create alpha.
Besides Goldman’s apparent lack of skill in generating returns in
downward markets, we also presented an analysis on how its share price
is driven by momentum (equity markets) instead of the commonly accepted
metric of book value. Those who would have followed the traditional
school of thought (sell side) by bidding the price up instead of down
would have seen their capital erode by 9%; the stock is down 9% since
our most recent publication. Below are some of the extracts from our
previous note alongside updated charts including Q3 results to peruse
before we delve further into the quarterly results the BoomBustBlog way.
Bloomberg also reports Goldman Has $2.3B ‘Funded’ Credit Exposure to Italy which is probably why they are also reporting Goldman Sachs Said to Raise $1.1 Billion From ICBC Stake Sale. Bascially, it's time to rasie some capital. After all, BoomBustBlogger subscribers saw this coming 4 months ago.
As excerpted from Hunting the Squid, Part2: Since When Is Enough Derivative Exposure To Blow Up The World Something To Be Ignored?So, what is the logical conclusion? More phallic looking charts of And to think, many thought that JPM exposure vs World GDP chart was
There's plenty more where that came from.... I'm Hunting Big Game Today: The Squid On A Spear TipI demonstrate how the market,
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Hunting the Squid Part 3: Reggie Middleton Serves Up Fried Calamari From Raw Squid |
Hunting the Squid, part 4: So, What Else Can Go Wrong With Goldman Sachs? Plenty! |
Hunting the Squid, Part 5: Sometimes Your Local Superhero Doesn't Look Like What They Show You In The Movies |
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Speaking of raising capital ... take a look at the gold plunge. Someone's liquidating as their losses mount.
Are you picking up the restaurant Tab tonite Reg ???
Better to pick up the bar tab.
Time for record year end bonuses.
Reggie had a quote awhile back that went something like" Goldman's business model is betraying their own clients". Strong words.....but of course proven correct. Therefore, when discussing this criminal cabal, one must no think in "normal" or "logical" terms.....nor, obviously, in ethical terms. These fucks would destroy ANYONE, including THEMSELVES, if it made them some alpha. Max Kaiser refers to them as "suicidal bankers". If Goldman goes under, you can bet your ass that they THEMSELVES took out puts and CDSs against their own company.
They invented Kamikaze Kapitalism
sheeeit, it is either:
1) they are intentionally NOT showing profits, or the crowds would get even more rowdy, or
2) the government - controlling the news cycle - is TAKING all the profits via trading through Gubermint Sacks in order to not have to covertly raise taxes to bail more TBTF corporates and sovereigns.
We are being screwed I tells ya', screwed. Manipulation is rampant now with the market swings. Governments are frontrunning the news cycles as "taxes" on citizens with the cash to play along.
http://news.yahoo.com/goldman-faces-lawsuits-over-15-8-billion-mortgages...
(Reuters) - Goldman Sachs Group Inc faces lawsuits over $15.8 billion worth of mortgage securities, the bank said in a regulatory filing on Wednesday, a more than 30-fold increase from the amount disclosed three months earlier.
The aggregate figure, which is up from $485 million previously, does not represent how much money Goldman management estimates it may lose on the litigation. Goldman lifted that estimate of "reasonably possible" losses to $2.6 billion from $2 billion.
I'm not surprised they can't trade Reggie. They can't give sound advice either. When the 'market' consists only of their algo bouncing a bait and switch trade to JPM's algo or DB's or whomever's, then they're not going to be making any money. This 'market' has been a joke since the great bailout.
How many of the what were 22 primary dealers are now visibly insolvent? Are we up to 7 or 8? (that we know of)
21 now mate. Remember MF Global?
Looks like almost all of them, or only hanging on by the lips suckling at the teat of governments.
Just puttin the "Mammary" back in primammary dealer.
Have you considered the possibility that Goldman executives have perhaps bought $1T worth of GS Credit Default Swaps?
To not get paid because there will be no credit event in the case of a GS collapse. Ask the EU officials. You see, once you start that bullshit, it becomes hard to stop it...
It's just hard to see any way out of this current crisis that ends well.
Keep up the good work Reggie... it's much appreciated.