Goldman Sets New Speed Record In FaceBooking Clients

Tyler Durden's picture

First thing this morning we warned our readers that we smelt a rat. The reason: at roughly 12:30 am Eastern this morning, or just before the European open, Goldman's Francesco Garzarelli sent out a note trying to spin the Spanish bailout as favorable. More importantly, they told their few remaining clients to go long Spanish 3 Year bonds. We said:

"Confirming that one should get the hell out of Dodge, is the fact that Goldman now is telling its clients to, wait for it, buy Spanish bonds:


"Short-dated Spanish Government Bonds Offer Value.... Even though the statistics for public debt will increase by about 10% of GDP, the funding program of the Spanish government will not be affected and the loan will come at much more advantageous terms for the public sector than current market rates. The combination of these two factors should reduce pressure on the Spanish sovereign. All else equal, yields should decline, particularly at the front-end of the curve. On Friday, the 3-year benchmark bonds closed at around 480bp over Germany. We could see a rally towards a 400bp spread during the volatile period while more news on the transaction becomes available."


Yes, we have seen this one so many, many times before: if Goldman is telling its clients to buy, it means Goldman is.... fill in the blank.

That's right, selling. Long story short, as the chart below shows, we probably have a new world-record in the short amount of time it took Goldman clients to get totally Facebooked by following the firm's advice to buy 3 Year Spanish Bonds. Note the yield on the short-paper below.

Luckily for its shareholders, at least Goldman's "flow" desk was busily selling and satisfying client demand for this paper, even if it only lasted for a an hour or so before the pukefest started.

Comment viewing options

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

They're doing God's work


Thanks Lloyd BlankBerg

Bananamerican's picture

Goldman still has clients?

They wouldn't also happen to be members of the Fukushima Tanning Club would they?

BKbroiler's picture

This must be the infamous "ripping clients face off" in action.  The Miami Zombie would be proud.

AldousHuxley's picture

do the opposite of retail

ride the coat tail of market makers

or goldman insiders


buy the rumor, sell the news.



uno's picture

yep, the public pension funds the taxpayer will end up bailing out in a year or so; Goldman just marks the losses to them

Doomer's picture

When you open Goldman account, you get a "Sold to me!" t-shirt and hat.

Al Gorerhythm's picture

Is Corzine working for Goldman now, or is it his understudy making these calls?


Obadiah's picture

"facebooked" hehe thats even better than "corzined", but not quite as nasty as you still have some monies left.

Ranger4564's picture

Thanks for that link, i sent it to a friend who's going through a mid life crisis... :-)

spastic_colon's picture

of one here is really so naive as to think that their clients are none other than the banks and soverign funds are they?

CClarity's picture

Where is Lloyd Blankfein?  Where where where is he scheming up these diabolical client f--ks?  And WHYWHYWHY is anyone still their client?

Dr Benway's picture

The vampire squid hypnotizes its prey.

Lucky Guesst's picture

I bet they would own up to having herpes before they would admit being a GS client these days.

holdbuysell's picture

Let me guess....another profitable trading day at GS.


slaughterer's picture

GS clowns were recommending going long WTI when it was at $104 a few weeks ago.  

hellas4life's picture

good for GS.  if you're an institutional client still taking their advice, you deserve to have your face ripped off

resurger's picture

you can make millions by plucking nickles from small fishes, what about the whales?

scatterbrains's picture

"If your an institutional client"  if you are a client by this point your probably a state or local  government pension fund manager and you probably couldn't care less about losses so long as Goldie promises to come through with your position at the firm once you leave the state.


Not Too Important's picture

Like CA Governor Jerry Brown's sister, Kathleen Brown, former CA State Treasurer, and now with The Squid?

"She currently serves as head of public finance for the Midwest region for Goldman Sachs, after taking positions as president of private banking for Bank of America from 1995 to 2000 and as head of public sector and infrastructure investment for Goldman Sachs from 2001 to 2010.[2] Staying in California for public sector banking would have likely posed a potential conflict of interest."

Love the part about "potential conflict of interest". She and Jerry must get a real laugh out of that one at the family dinners.

And that bullet train Jerry wants so badly. Who's going to underwrite the bonds? GS? Hahahahahaha. Fuck CA.

Arnold Ziffel's picture

Hickory, dickory, dock,
The mouse ran up the clock.
The clock struck one,
The mouse ran down,
Hickory, dickory, dock

Zero Govt's picture

Goldmans obviously so desperate to get a ramp in to sell-on their greed/fear now surpasses their care for their tattered reputation

...we're near the end of this junk criminal bank, you can see the sweat

Rainman's picture

Here's another smelly from the Squid.....dumping the hedge fund admin on a prospective greater fool.



nmewn's picture


slaughterer's picture

We automatically assume that GS was on the other side of the trade.  But what if they are simply morons?  

Ms. Erable's picture

How many perfect or near-perfect trading quarters has the squid posted in the last few years? Assuming they're on the other side of the trade is a very safe call.

stocktivity's picture

Yep...they had one...ONE...losing day in the 1st quarter. ALL of Jan, Feb, and March. No..really....the market isn't ...really.

RacerX's picture

if Goldman is telling its clients to buy, it means Goldman is....


cougar_w's picture

What good are bridges if you don't burn them? Smells like end game to me.

BurningFuld's picture

My calculator tells me even if Spain was given a -3%  (minus) loan it would still be fucked. Is it broken? Naa.

10044's picture

As long as they don't talk bout gold it's fine with me

devo's picture

As long as they don't talk bout buying gold it's fine with me


Moe Howard's picture

Facebooked. Nice.

Pure Evil's picture

Just a nice way of saying Face-Fucked.

jeff montanye's picture

or saving the face, once ripped off, in a large book of some sort, like a pressed flower or a scalp.

MarsInScorpio's picture

Let's pretend for a moment that it's true that GS deliberately tells its clients to do one thing, while its prop desk is going to do the opposite to take advantage of the muppets who follow their advice.


I find that really great news - it means that if GS consistently advises the opposite of what is really the best action to take, then all I have to do is make sure I know what they are telling people to do, then do the opposite myself.


What a great deal!! I don't care how I have to manipulate the advice to get rich, just so long as I understand what I need to do to get rich.


OK, shorted WTI, shorted Spanish bonds . . . what's their next bit of advice . . .??


Doomer's picture

Google "Goldman Sachs", then hit the "News" link on the left side of the page.

Your welcome.

From one story: "Only two out of seven Goldman's trading recommendations are currently making a profit."

70% success rate ain't too shabby!  Not sure what the average loss is on those recommendations.

Read more:


IMA5U's picture

Value Investing -- buying something ealry that only goes down

slaughterer's picture

Tim Crook should add a GS app to the new iPhone called iSquid.  

Snakeeyes's picture

Great spin from Goldman.

fonzannoon's picture

Last year around this time Goldman made Patriot Coal their number one pick at around $22 saying it was going to $27. Yup.

slaughterer's picture

That means Peabody Energy (SBU) is in trouble, as GS just upgraded them a week or two ago.  

Legolas's picture

Seriously, Goldman still has clients?  The reason I ask is because I thought that all the gullible money was already stolen.

My take on Spain:

Still long on "Spandex" (It holds alot and keeps on expanding)


Manny's picture

At some GS clients will figure out like Castanza that doing the opposite works!