Goldman Explains What The Supercommittee Failure Means

Tyler Durden's picture

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.

The U.S. dis-credit rating. Who the f cares about this shit? Anyone with half a brain knows what is really going on. Warren Buffoon's quad A rating is priceless. 

Harlequin001's picture

The CEO that downgraded the US has gone hasn't he?

What makes anyone think there will be any more downgrades, until it's too late to get out anyway?

Next step; Dick Bove for S&P CEO, Cramer for CFO and problem solved...

The Big Ching-aso's picture



The Super Committee having done Super Nothing which derivative to the endemic Super Fuckups in Congress doing pretty much everything Super Clusterfucked, the Super Nothing Committee is in actuality a Super Plus.

Harlequin001's picture

reminds me of a script from the 'Incredibles'...

just sayin'...

Don Birnam's picture

 "We viewed the latter as more likely given (1) public pressure on lawmakers to reach basic agreement on key issues..."

"Public pressure" -- i.e., Goldman, and their Wall Street brethren. Laughable, the sheer gall of these thieves.

Big Slick's picture

Moody's, Fitch, and S&P. 


These are the geniuses who accurately rated our subprime investments, right?


navy62802's picture

What an absolute farce. This sequestering plan is the plan for now. But Washington lobbyists have an entire year to negotiate their way out of these "mandatory" $1.2 Trillion in cuts. When 2013 rolls around, even these meager deficit reduction measures won't be around.

But hey, futures are green right now. So there's nothing to worry about. It's all good, right?

oogs66's picture

How much money is the defense industry going to spend on lobbying ?

Ghordius's picture

"...some Republicans have already said they will push to reverse the defense-related cuts in particular because they believe that they would unacceptably weaken the military..."

They are already at work, since Ike's times they are relentless...

It is the question about how to defend the US of A from an attack of all the rest of the world, including the untrustworthy NATO allies, plus Krugman's aliens contributing the same firepower.

Half of the military spending of the whole world seems to be just the right amount, one quarter only would be utterly too little...

It's sad, sad, sad... I love the USA, even though sometimes it's like loving a Hot Californian Blonde with the attention span of a fruitfly...

FreeNewEnergy's picture

Who gives a flying pig's ass if unemployment benefits and the payroll deduction go away? Like Herman Cain (asshole supreme) said, if you're out of work, it's your fault. The man has no future in politics, that's for sure.

As for payroll taxes, who not cut the Gordian knot and just stop paying. You'll have happier employees and more cash for about six months, then the Federales will come hunting and your business will be toast. But, since there's little hope for American business, you could just take your dough and head to South America, escape the Kleptocracy and live well.

Taxes? Who's going to pay them before food? Gas? Heat? And all those worker's comp, unemployment insurance, SS and Medicare taxes they screw you out of every pay period, screw them.

Pay cash, buy some PMs with the money you keep and learn how to shoot and run at the same time. The day of reckoning is upon us.

"Government is quickly losing the ability to govern." - John Bogle, a couple weeks ago on CBS news.

Terminus C's picture

Fuck Goldman and his Sach.  Not sure why we should even consider what these cunts say.

DeadFred's picture

GS is the single best source of contrarian info. Fade everything they say. They are parasites so why would anyone think they would give away information. There is ALWAYS an ulterior motive for their words. Read the article and try to figure out how they are trying to con you and you will be a wiser investor.

Edit: I know it's a disturbing job but like a med lab analysing a stool sample valuable information is obtained.

twotraps's picture

good morning....nothing like a little jolt of coffee and reading your comment to get the blood flowing.  Thought the same thing, no downgrade bla bla bla sounds like stocks are a buy then right??   Not sure why we listen either.

Big Slick's picture

Reading the GS analysis I marvel at the skill of writing a mis-direction piece while at the same time hedging your  predictions so that when/if anyone reads this on Monday morning (i.e. after its all over) they can't say it was full of crap.

The world's best hedgers writing the worlds best hedge piece.


Spitzer's picture

The US cant agree to stop spending like retards and Europe cant agree to print money yet the dollar rallies. The market is full of mental cases.

Gamma735's picture

We don't need to worry about all the excessive debt.  The Mayans had it right, Jesus will return in 2012. 

Big Slick's picture

He's here already.  QB for the Broncos.

riley martini's picture

 A downgrade would bring on an investigation by the fascist with insider theft accounts and the firing of the CEO of the ratings agency .  Chances of a lap dog rating agency downgrade 0.

BKbroiler's picture

good. both parties get it in the ass.  the only who isn't bothered is Ron Paul.

bob_dabolina's picture

 Goldman's take: "No ratings downgrades for now, but another "negative outlook" seems possible.

Ratings downgrade imminent.

ThatThatcher's picture

Moody’s stated the developments were ‘informative but not decisive’ whilst S&P felt this was ‘consistent’ with their decision on Aug 5th  to downgrade the country’s ratings. Moody’s: Aaa, negative. S&P AA+, negative. Meanwhile, Fitch’s will conclude their review by the end of November but released a statement that they would likely reduce the outlook to negative, indicating a 50% chance of a downgrade in the next two years.

ffart's picture

S&P and Moody's have indicated that they will not take negative action on the US sovereign rating due to the super committee's failure to agree. Fitch has not yet concluded its rating review, but indicated in August that the Super Committee's failure to reach agreement would likely result in negative ratings action, which most likely means moving the outlook on its AAA sovereign rating from stable to negative (this would place Fitch in an equivalent position to Moody's). Fitch has indicated it will conclude its review by the end of the November."

Are we about to experience Peak Bullshit?

lolmao500's picture

If only just one party held power in both house and senate, everything would be fixed and this scam could go on for a while longer!

JR's picture

Aside from Goldman’s hopeful list to Santa, IMHO, to undo the automatic spending cuts, let the 2001/2003 tax cuts expire after December 2012, increase the debt limit and, if Rubin has his way, leave legit SS recipients holding an empty bag, Santa’s Bad Boy Denninger is stirring up Santa’s little helpers with the bad news about the Goldmans who stole Christmas…

Here You Go: It's Over | 2011.11.21

We're done folks.

CNBC is reporting that there are now clients running out of the markets entirely because they do not believe their customer funds are safe.

That's the end of it.  The belief that there are more MF Globals has now taken hold.  The thieves have pushed it too far and now we've got the start of a global liquidity run, and with good reason.

The authorities both in the regulatory side and on the prosecutorial side have refused to put a stop to the thievery and now the risk factors have turned into realized risk.

The market is done folks.  You can be right but if you make your bet in the markets, are right, and then get screwed anyway when someone steals the money and nobody goes to jail there comes a time when people begin to understand that it can happen to them and will unless they depart the market.

We're there folks.

Oh sure, there will be rallies and there will be selloffs.  But there is no longer a market, there is no longer a thing to trade, and there is no longer a reason to believe that superior analysis will lead to profit or even safety.

This isn't just about speculators - it is also about farmers, shippers, airlines, manufacturing concerns, everyone in business who has a need to hedge.

More than four years ago I said that the government had to step in and demand that both off-balance sheet games be ended permanently and in all forms and that all derivatives had to be put on an exchange, without exception, and that every dollar of underwater position had to be backed by an actual dollar of capital in real money, held and known to be safe.

The regulators refused and now it appears that what was put up on a regulated exchange was effectively stolen.

Well folks, then none of your investment accounts -- not your IRA, 401k, not even your bank account -- is safe.

Diversification is a strategy but the risk remains.  It is up to you to decide how much you're willing to risk losing to a crook.  If the answer is "none" or you cannot reduce the at-risk portion of your assets to what you're willing to lose to fraud then you can no longer participate in the market at all, in any form, nor even do business with a bank.

That sucks, but it is what it is and if this meme spreads -- and it will until it's stopped -- we run the risk of a "sudden stop" economic event.

I hope you're ready for it -- I am to the best of my ability, and you ought to be.

twotraps's picture

really  well said.  been struggling with how to keep up with some return, without huge risk and or some investment where you could protect yourself against erosion of the dollar.  Not that easy and really tragic.

James T. Kirk's picture

May I have your attention. We have just experienced total engine failure while cruising through Fantasy Island Galaxy. Don't bother to fasten your seatbelts. Hard landings don't exist when you unexpectedly pop out of hyperspace at Warp 9.

dr.charlemagne's picture

from a monitarist point of view the super failure is short term bullish since we know that they will now dismantle any meaningful spending cuts and the gov't will continue to pour out more more and more cash. they have decided to kick the f'ing can again by "default", oops, I mean "until default."

Charles Martel's picture

Isn't this a good thing?  Since these knuckleheads can't reach an "official" agreement then the automatic across-the-board spending cuts get implemented.

ItsDanger's picture

Even if they had agreed on some deal, it would accomplish nothing.  Treating the effect and not the cause never works in the long run.  They consistently operate outside of a budget anyways.  Something people just arent aware of it seems.

Bansters-in-my- feces's picture

I see that S&P got there check from the USTreasury.

And where th fuck is Jon Corzine.?

Maybe Goldman can explain that.

No charges even....not for MF,NOT for Jon Corzine...?

Explain that Goldman Sachs.

And USA Justice Department.

What a fucking joke,you fat fucks.

LookingWithAmazement's picture

Supercommittee Failure - no crisis. World will continue to lend money to the US, still the best option after all. 2012: grotwh returns with a vengeance. Bye bye "crisis", collapse, meltdown, Armageddon.

Saro's picture

Not as funny or original as MDB, but I still chuckle a little. C-

buyingsterling's picture

Bullish for Ron Paul's chances. These 12 morons couldn't find cuts in ten years to match what he proposes to cut 1st year. And yeah, he can do it. The executive is king, and he'll have a mandate and coattails.

DonutBoy's picture

Tis but a scratch

Mark123's picture

Can I get a high paying job writing this sort of useless crap for Goldman?  I would only ask for a meager $1 million year end bonus too.


What a f--king joke. 

oogs66's picture

You think too small - you have to think you deserve 5 million to get a job there and be disappointed when you only get 1 million

Number 156's picture

It failed because it didnt come up with the answer they wanted to hear.

overmedicatedundersexed's picture

Milken went to jail for alot less , as I remember he never stole trading accounts..Jon y boy..looks the type to say: put me in jail and I will talk and all you MFers are going with me..thats why the whole elite run MSM is not demanding his head.

Prediction: he will be run over by an out of control car while walking in can't threaten the TBTF..mafia

overmedicatedundersexed's picture

motto on congress bathroom wall:" IF you do nothing you can't be blamed but you can point your fingers at the opposition and say it was because of them a win win" -..

congress knows: do nothing things get worse

                        cut spending things get worse (job loss)

                        print and spend things get worse but people willl vote you back to DC..

guess which one they do?



tgmur10's picture

It was never designed to succeed in the conventional sense, so therefore, as it was designed, it was a complete success!!!   Chit, I think I’m getting the Crap……. 

Ben Bunger's picture

US parties will not agree on anything until they have to. That is until they default. Risk-free rate the biggest oxymoron of the post war era.

twotraps's picture

Not the best analogy but lets say a parent gives her son and daughter a joint credit card.  They each get a good size allowance and both work with decent side-job income....the credit card runs over and they all have a little chat.  Again and again the kids can't work it out, despite income from various sources they continue to spend over the limit.    One reason for their failure may be they just have expenses they can't agree to...or there are special needs that are very difficult to cut at this time...or they are in a several year spending crunch due to college costs............or, just maybe, possibly, don't want to rule out that they absolutely don't fear the consequences of being over the limit.   Perhaps the missing part of the story is that there's no 'real' lasting punishment and always a way to game it or get around with excuses.  Are the kids really devious or are the parents teaching them to be good gamers and scammers.

imsaul0968's picture

For those of you who invest in an IRA or for long term goals, theres a better approach than buy,hold,hope. Stocks follow the economy so analyzing the economy, specifically the factors that are "leading indicators" and having exposure to equities only when the economy is headed in the right direction and avoiding equities in favor of safe haven baskets is a much more logical approach. And missing the major drawdowns is the only way to help ensure meeting your goals.  If you are interested in investing in a portfolio that tactically invests in equity and safe haven baskets via ETF's automatically, please email me at:

and I'll add you to the weekly market commentary & portfolio update distribution list.  Its free to add you and you can follow along our model and our views.  We have been RISK-OFF since 6/30 so have missed all this wicked volatility. Currently invested in short duration treasury baskets as flight to safety drives interest in our debt.