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Here It Is: Presenting Goldman's "The World Is Ending So Let's All Profit" Report

Tyler Durden's picture


A few days ago the WSJ made waves by disclosing that Goldman was in the process of recreating another "Abacus", by pitching to clients a global "pain trade" presentation created by Goldman's Alan Brazil, which, among others, speculated that funding needs for European banks would be far, far greater than the IMF-proposed $200 billion, and would in fact be closer to $1 trillion. This emphasis is actually odd, because Goldman focuses as much if not more attention on the end of the Chinese bubble as it does on the end of the European ponzi. It of course also did the usual Goldman thing, which is to allow select clients to piggyback with its prop, pardon flow, desk, in recreating the same fiasco for which it already had to pay a half a billion settlement to the SEC last year. Yet to date, nobody had actually seen a public version of this report....That is, nobody, until now - presenting Goldman's top secret "State of the Markets - Long and Short Risk Strategies"

In summary, Goldman proposed key trades for Europe are:

  • Buy 5Y Protection on iTraxx Series 9 9-100% Tranche
  • Buy 6 Month EURCHF One-Touch Put Option

While on China Goldman recommends its best clients to the following:

  • Buy a Short Equity Total Return Swap on Chinese Banks
  • Buy a USD put CNY Call Option
  • Buy Short-Dated CNH Bonds (Dim Sum Bonds)
  • Buy AUDUSD Put Spreads or Receiver Swaptions on AUD Swap Rates
  • Buy Copper Put Option spread

Full report below:



h/t Lloyd Blankfein


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Fri, 09/02/2011 - 13:11 | 1627019 Two Towers AU AG
Two Towers AU AG's picture

Get Physical Bitchezzzzz.. with the gold :P

Fri, 09/02/2011 - 14:15 | 1627251 CrashisOptimistic
CrashisOptimistic's picture

Too much loose talk about "end of the world".

Definitions are important.  To have an end of the world you have to kill off 7 billion people.

That's not likely.  My estimates are about 1.1 billion can live on this planet post oil.

So 7 billion deaths is absurd.  The correct number is 5.9 billion and that should be over the next 15 years.

Fri, 09/02/2011 - 14:22 | 1627275 BaBaBouy
BaBaBouy's picture


Super Leaches ... Thiving On Dead Corpses ...

Fri, 09/02/2011 - 15:15 | 1627469 tekhneek
tekhneek's picture

"It goes it goes it goes it goes guillotine.... YEAH!"

Fri, 09/02/2011 - 15:43 | 1627562 Michael
Michael's picture


No permanent jobs will ever be created in America ever again thanks to NAFTA, CAFTA, GATT/WTO.

I love watching the D's and R's twist in the wind knowing they can't create new jobs because of the trade legislation they themselves passed.

No more tax money for you G-man!

Fri, 09/02/2011 - 17:00 | 1627917 JW n FL
JW n FL's picture



Michael <------- What he said! BITCHEZ!!

Fri, 09/02/2011 - 23:44 | 1628065 DoneThis2Long
DoneThis2Long's picture

Finally, someone sees one of the problems - which I mentioned in a reply on a different thread. We've signed and passed some of the dumbest deals just so one or two companies could gain while others lost, and we are starring the proof smack in the eye. Net net, they were idiotic deals resulting in US loosing every step of the way, yet, the Current Resident @ 1600 Penn Ave, wants to sign some more.

We clearly need more revenue: review some of those former deals and do nothing but reply in kind to the respective country's treatment of American made products - do we still make anything here ??? - by taxing their goods US bound, just as they tax ours. Use identical yard-sticks for both sides.

And lets not forget the currency manipulators: tax by the amount their currency is upside down vs. the USD. We need fairness in trade deals and enforcement of the damn clauses harming the American Corporations, and we'll be just fine.

We could probably cut the deficit considerably is we did nothing else but make china pay for all the illegal software knowingly used nowhere else but by their gov workers. Apply it to all software, so include all American created software sold everywhere and we'd be just fine and underway to greatly cut the deficit. Just deduct the bill from the IOUs they hold.

Then move on to all the US subsidized intellectual property stolen from American corporations and gov agencies. How in hell can they be so "proud" of their "achievements and progress" much of it being nothing but stolen US based know-how and technology ?!? Yet our politicians crawl on their hands and knees for more bones making asses of themselves. If they were so fucking brilliant, why did they allow their population levels to grow many times over what their own lands and agri output could support? Now, their irresponsible population growth rate greatly contributing to a number of issues.

More could be said but ... it will not do any good. Who gives a shit of our ramblings? We are just venting, while having our ass(et)s and constitutional rights stripped away, along with quality of life, etc etc, just so soros et al, can achieve their 'new world order' (wet) dream - the one in which they screw us all.

Fri, 09/02/2011 - 14:22 | 1627278 Seer
Seer's picture

Actually, End of the World would require the complete explosion/implosion of the planet...

1.1 billion?  Why not 1 billion, or 1.2 billion?

Death, the next growth sector...

Fri, 09/02/2011 - 14:27 | 1627294 CrashisOptimistic
CrashisOptimistic's picture

It has to do with arable surface area and what population was being fed around 1880 before oil arrived for tractors, fertilizers and insecticide.

There is some fudging in there for agro lessons learned, but you can't transport food to cities when the farms in Nebraska are 1000 miles from the east coast.  Then 1 season seeds are gone and no more are shipped from Monsanto plants and not everyone has heirloom seeds.

Add it all up . . . 1.1 billion survive on the planet.  The US gets about 800K of that, down from 330 million.

Fri, 09/02/2011 - 14:29 | 1627303 LawsofPhysics
LawsofPhysics's picture

Don't forget the Haber Bosch process, no fertilizer, no way to produce food quickly.

Fri, 09/02/2011 - 14:52 | 1627367 spiral_eyes
spiral_eyes's picture

The world isn't ending, nor are we going down to 1.1 billion "in the next 15 years". This is an economic depression, not the end of the world. GS recognise that, though I guess they hegde with bunkers, which is smart, but it's a very, very long shot. We are not out of oil, or out of oil infrastructure. Venezuela alone has enough oil to sustain the world demand for 30 years. I hope that the result of this crash is that we start working on the infrastructure for a post-oil world. But let's just remember guys:

Malthus has been wrong every single time. More solar energy hits the world in a day than our net total for the last 50 years. Just a matter of harnessing it. 

Fri, 09/02/2011 - 15:04 | 1627419 CrazyCooter
CrazyCooter's picture

"Venezuela alone has enough oil to sustain the world demand for 30 years"

You might want to mention its an API of roughly 10 and is also a non-newtonian fluid.

In this case, non-newtonian fluid means the shit will set like concrete if you let it cool off.

One might also benefit from a study of hydrocarbon cracking

In short, refineries have to be specifically designed to handle heavy crudes even so far as to tailor for a specific blend.

None of this is cheap!



Fri, 09/02/2011 - 15:07 | 1627432 LawsofPhysics
LawsofPhysics's picture

Thanks Cooter,  yeah there is an energetic and financial cost to recover the stuff.  While there many people working on the technology, it still takes capital and available resources to do.  Another sheep reading GOP talking points.

Tue, 09/06/2011 - 22:29 | 1640618 myne
myne's picture

Hah, so it's basically sloppy coal. Niiiice!

Fri, 09/02/2011 - 15:05 | 1627421 LawsofPhysics
LawsofPhysics's picture

Sorry, it is a question of the energy flux require to fix enough nitrogen to feed the current population and grow.  Solar can not do it.  Oil and coal are simply stored solar energy that has been concentrated.  Even in your scenario, growth is going to slow.  Even if you captured 100% of the sun's electromagnetic radiation, you still have a fairly constant flux of energy (i.e. no growth).  Moreover, we have other bigger problems such as;  the sulfur cycle, the nitrogen cycle, the phosphorus cycle, the carbon cycle.  These are cycles the move the prospective elements through various oxidation states.  The sun and numerous marine organisms do this, some are phototrophic, some are not.  If the flux of elements around any of these cycles stops (phophorus and nitrogen cycles in particular - because of fertilizer for plants) then it is game over.  If they slow down, the results will be disasterous.


Either way, even in that "solar only" world of yours (which I hope comes to pass), we are looking at big changes in how people live and the resources that they will have access to.  This means no growth eventually.  ALL our economic and monetary policies depend on exponential growth so the pain is real with even a slow-down.

With regard to your comments about recovering oil,  do you work on a rig?  Do you have experience in an oil field?  No,  well my brother has been in the business for 20+ years.  It is all about the energetic and financial cost to recover the stuff and how much you can sell it for.  Sure if these companies can get $200-500 per barrel they will keep going after it.  Hhmm, let's see, what has happened to wages around the world again dipshit?  Earth will stop using oil with plenty in the ground simply because the energetic and capital costs will make recovery unprofitable, especially when these areas erupt with war.

Fri, 09/02/2011 - 15:28 | 1627516 dolly madison
dolly madison's picture

"Either way, even in that "solar only" world of yours (which I hope comes to pass), we are looking at big changes in how people live and the resources that they will have access to.  This means no growth eventually.  ALL our economic and monetary policies depend on exponential growth so the pain is real with even a slow-down."

There will be pain ahead for sure because we are living in an unsustainable way.  We need to change our monetary policy for sure.  Fiat currency with fractional reserve banking really falls apart badly without growth.

As far as energy, I think we should be trying to switch to solar, wind, and any other renewable energies.  It does not matter if the renewable energies cannot fully supply us.  Some is better than none.  Some will help the amount of other stored energies we have last longer, and will buy us time.  Time can possibly solve the problems because of innovation.

Trouble is that the croney capitalism we have gets majorly in the way of us making the changes we need to.  We should be doing things like trying to add smaller farms, encouraging people to live in more agrarian ways, changing zoning to make work closer to home, encouraging much solar power in individual ways instead of farms of solar panels and windmills which have not been profitable.  More of us have a better chance of long term survival if we start moving away from our consumer economy driven by suburban living.

Fri, 09/02/2011 - 23:26 | 1628871 CrazyCooter
CrazyCooter's picture

"I think we should be trying to switch to solar, wind, and any other renewable energies."

I am 100% renewable electricity generation where I am. You?

Individuals who talk about doing something are not the same as individuals who do something. More succinctly (not to be an ass) I did something, you have not. It matters what we do, not what we talk about. "Government" will never solve any problems, individuals will.

Don't want to be combative (I know it sounds that way), but I do want folks to realize they can not wait for things to change, they have to be the change. Wait, and it will be too late for you and your family.



Fri, 09/02/2011 - 22:45 | 1628809 bid the soldier...
bid the soldiers shoot's picture

We mustn't forget to factor the militaries of the world into all of this. As the existing proven reserves diminish through truth and time, more and more of the stored oil in the ground will be arrogated by militaries until civilian populations are reduced to wind mills, solar panels and hydro electric power.

At this point you can say good by to capitalism and hello to war with eastasia.

Fri, 09/02/2011 - 15:36 | 1627543 John Law
John Law's picture

  Venezuela alone has enough oil to sustain the world demand for 30 years.

Errr, I think your math is off a little pal. Venezuela has proved reserves of 211 billion barrels.

In 2010 the world averaged roughly 87mbd usage. 30 years would require 952,650,000,000 barrels. That's just under 1 trillion. Not allowing for any growth in demand. If you factor in 3% growth annum, you would need much more than that.

So please, think for yourself and don't repeat the bullshit propaganda you hear.

Fri, 09/02/2011 - 16:47 | 1627851 Potemkin Nation
Potemkin Nation's picture

Not only that, but you need to consider the energy and cost it takes to retrieve each barrel, which increases as the field is depleted, as well as the rate at which it can be pumped out of the ground. 

Fri, 09/02/2011 - 21:20 | 1628669 bid the soldier...
bid the soldiers shoot's picture

If Big Brother says 1.1, then I say 1.1. I don't want no rat cage strapped on my face, dude.

Sat, 09/03/2011 - 12:08 | 1629516 Are you kidding
Are you kidding's picture

You couldn't be more wrong.   Oil is "condensed" sunlight.  We use 5 MILLION years worth of "sunlight" every year as oil/NG/coal.  We suck down energy like there's no tomorrow!  And there just may be no tomorrow...tomorrow.  We ARE running out.  There would be no reason to go to the extremes we do to get it if it was replenishing.  You can't replace fossile fuels short of fission/fusion.  We need a new technology that lets you turn waste into energy at the atomic level.  Waste is completely eliminated and if even 1% efficient, could power the planet.  Shit and piss into the machine and power your house for the day.  We need "cold fusion" or something similar.  I'm not so sure we'll find it.  I fear the dark ages are approaching.

Fri, 09/02/2011 - 14:32 | 1627314 unky
unky's picture

The US is blessed with a lot of arable land unlike for example china which has great deserts.

Fri, 09/02/2011 - 14:51 | 1627368 decon
decon's picture

Can't argue with your logic however there has been a lot of serious degredation to soils, watersheds and fisheries worldwide since 1880.  Conversely there have been some improvements to mobility such as road networks and bridges as well as non-hybrid crop genetics.


OT- what would be the consensus on holding a 2 day old FAZ position (big) over the weekend? 

Fri, 09/02/2011 - 14:56 | 1627393 Bolweevil
Bolweevil's picture


Fri, 09/02/2011 - 15:09 | 1627446 gmrpeabody
gmrpeabody's picture

Big FAZ over the weekend... 55/45.

But, it's gambling, unless you're using OPM.

Fri, 09/02/2011 - 15:11 | 1627453 topshelfstuff
topshelfstuff's picture

When in doubt, especially given this Yo-Yo Market, it never hurts to sell a good half position on the gain. Even if it continues to rise come Tuesday, you'll enjoy the weekend more.

Fri, 09/02/2011 - 15:23 | 1627494 HyperLazy
HyperLazy's picture

Re: OT - I will hold my FAZ and TZA over the weekend. Keeping an eye on asian and european markets before tuesday opening. I wouldn't be surprised if the futures are green, markets open up with a instant 1% rise and then resume falling. Unless, of course during the weekend, aliens arrive from the andromenda galaxy bearing super technological bailouts to the tune of 4.4 quadrillion space dollars at 0% interest.

Fri, 09/02/2011 - 15:42 | 1627557 decon
decon's picture

Thanks for the opinions.  I tightened trailing stops earlier and the market made the decision for me.  Like you guys expressed, it's so volitile and you can't predict if the gov will show up with some new monkey business, I rarely hold that kind of position overnight anymore.  The bullbearpig response went right to the heart of the matter.  Have a restful weekend, I know I will!

Fri, 09/02/2011 - 15:37 | 1627546 johnnynaps
johnnynaps's picture

Can't wait! Positioned nicely, found a funeral director to intern with!!!

Fri, 09/02/2011 - 21:10 | 1628651 bid the soldier...
bid the soldiers shoot's picture

Burials is a shovel ready industry, if there ever was one.

Sat, 09/03/2011 - 18:22 | 1630168 Lord Koos
Lord Koos's picture

Should it occurr, the end of humanity is not the end of the world.

Fri, 09/02/2011 - 14:28 | 1627299 LawsofPhysics
LawsofPhysics's picture

Not too far off.  Prior to the invention of the Haber-Bosch process for burning oil and coal in order to reduce molecular nitrogen gas into ammonia for fertilizer, we had just under 2 billion.  Of course that 2 billion typically lived to the ripe old age of 40.

Fri, 09/02/2011 - 14:52 | 1627376's picture

The increase in lifespan is more directly attributable to medical advancements such as antibiotics rather than available food sources, no?

Fri, 09/02/2011 - 14:59 | 1627401 tallystick
tallystick's picture

Increase in average lifespan is mostly due to decrease in infant mortality.  Maximum lifespan for well-nurished people hasn't increased much, if at all.

Fri, 09/02/2011 - 15:08 | 1627443 Bicycle Repairman
Bicycle Repairman's picture

I would include public health items like proper santiation.

Fri, 09/02/2011 - 15:08 | 1627435 CrazyCooter
CrazyCooter's picture

IIRC, food security is the biggest contributor with modern medicine coming in second. Makes sense if you think about it; I can get by without a doc if I am lucky, but I can't go hungry for very long.



Sun, 09/04/2011 - 13:22 | 1631549 bid the soldier...
bid the soldiers shoot's picture

I thought Meals on Wheels.

Fri, 09/02/2011 - 14:43 | 1627345 e_goldstein
e_goldstein's picture

End of the world, not likely.

End of Western civilization, getting closer by the day.


Fri, 09/02/2011 - 15:09 | 1627447 LawsofPhysics
LawsofPhysics's picture

There it is.  Don't speak the truth too much, it makes you a target.

Sat, 09/03/2011 - 14:59 | 1629796 bid the soldier...
bid the soldiers shoot's picture

If Western Civilization falls in a forest and no one is alive to see it, is it the end of the world?

Just asking.

Fri, 09/02/2011 - 15:07 | 1627430 Bicycle Repairman
Bicycle Repairman's picture

"My estimates are about 1.1 billion can live on this planet post oil."

So are you prepared to do the right thing?

Fri, 09/02/2011 - 17:11 | 1627963 Fukushima Sam
Fukushima Sam's picture

"The right thing" is to be one of the survivors.


Fri, 09/02/2011 - 19:57 | 1628518 Bicycle Repairman
Bicycle Repairman's picture

I was thinking that I want you Malthusians dead.

Fri, 09/02/2011 - 15:13 | 1627461 bakken
bakken's picture

Wish you were wrong.  We will be lucky, maybe only 20% of the US population will die off.  Places like BanglaDesh, N China, Brazil, will see much higher proportions.  In the military, 20% losses completely put units out of action.  The only trouble is, this will not be quick enough and the remaining population is likely to become despondent, similar to to post-Black Death Europe.  I am kind of glad I won't be here to see it.

Fri, 09/02/2011 - 21:05 | 1628644 bid the soldier...
bid the soldiers shoot's picture

Must disagree. In all those places you mention they have no electricity, no cars and can live on weeds. They won't even know the paradigm has changed.

Americans will lose their desire to live when they stop broadcasting "Dancing with the Stars."

Sat, 09/03/2011 - 04:34 | 1629153 indygo55
indygo55's picture

What? I love that show!

Fri, 09/02/2011 - 16:00 | 1627625 Chuck Walla
Chuck Walla's picture

With Obama-care, we are getting a good jump on killing Granny & Gramps here in the states, but it really needs to go to India and China.


UN Agenda 21, Btchez!

Sat, 09/03/2011 - 04:17 | 1629145 Ursa Major
Ursa Major's picture

Insane! Obama are will actually allow them to pay for treatment - the current system provides them with the best care they can(not) afford...

Fri, 09/02/2011 - 20:55 | 1628629 bid the soldier...
bid the soldiers shoot's picture

The devil's in the details.

Fri, 09/02/2011 - 23:37 | 1628887 markmotive
markmotive's picture

We're living in a boom-bust cycle brought on by peak oil.

Sat, 09/03/2011 - 02:46 | 1629096 Ursa Major
Ursa Major's picture

Is Goldmans making markets in it?

Sat, 09/03/2011 - 03:27 | 1629120 bid the soldier...
bid the soldiers shoot's picture


Sat, 09/03/2011 - 03:25 | 1629121 bid the soldier...
bid the soldiers shoot's picture

The less, the merrier.

Fri, 09/02/2011 - 13:15 | 1627025 FunkyMonkeyBoy
FunkyMonkeyBoy's picture

My, my, that sure is a pretty looking document Goldman have created there, but unlike seeing Bob Pisani's Visit To GLD's vault, it didn't want to make me masturbate.

Fri, 09/02/2011 - 14:23 | 1627284 Shitters_Full
Shitters_Full's picture

You masturbate to Bob Pisani?!?  Eww...

Fri, 09/02/2011 - 14:44 | 1627350 pods
pods's picture

You can even pull The Stranger and pretend it IS Bob.


Fri, 09/02/2011 - 13:17 | 1627035 Robslob
Robslob's picture

But but but those European Banks just got $1 Trillion last year????

Ooops, sorry, everyone must have already forgot...where did it all go?

Fri, 09/02/2011 - 13:18 | 1627039 cossack55
cossack55's picture


Fri, 09/02/2011 - 13:24 | 1627068 shazbotz
shazbotz's picture

hookers and liquor

Fri, 09/02/2011 - 13:17 | 1627036 fyrebird
fyrebird's picture

Top secret, huh? Does it like blow up or something after I read it?

Fri, 09/02/2011 - 13:24 | 1627067 Raynja
Raynja's picture

The document won't, the trade will.

Fri, 09/02/2011 - 13:27 | 1627083 gmrpeabody
gmrpeabody's picture

Well played...

Fri, 09/02/2011 - 13:45 | 1627139 Oh regional Indian
Oh regional Indian's picture

It smells like a plant. A hydrogen sulfide plant that is.


Fri, 09/02/2011 - 13:18 | 1627040 williambanzai7
williambanzai7's picture

Is this what Blankfein calls Mein Krotch?

Fri, 09/02/2011 - 13:21 | 1627049 Sequitur
Sequitur's picture

Goldman's Timberwolf transaction: "one shitty deal."

- former Goldman mortgage executive Thomas Montag.

If you are a Goldman client, how can you possibly be after seeing this:

Fri, 09/02/2011 - 14:35 | 1627323 MarketTruth
MarketTruth's picture

Vampire Squid Goldman Sachs sells MANY shitty deals to stupid sheeple who do business with them. Personally, the screwing Goldman Sachs clients get is the screwing they deserve. i hope GS screws ever single one of their investors, because only a total idiot would trust their investments with Goldman Sachs.

Fri, 09/02/2011 - 13:20 | 1627051 RobotTrader
RobotTrader's picture



Oh, great.  Now Goldman is doing the world a huge favor by telling everyone how to profit from a Risk Asset Crash?

At the exact moment in time when sentiment is the worst?

Fri, 09/02/2011 - 13:23 | 1627061 the not so migh...
the not so mighty maximiza's picture

just buy netflix, everything will be a-ok



Fri, 09/02/2011 - 13:35 | 1627103 lieutenantjohnchard
lieutenantjohnchard's picture

or tzoo, or jpm (best in breed 'tard said), or sell gold and silver (as 'tard did) as 'tard has recommended in the past.

btw: wonder if gentleman jim sinclair is still beating himself up as 'tard has said, having not bought tzoo versus gold? hmmmmm.

Fri, 09/02/2011 - 13:41 | 1627120 hedgeless_horseman
hedgeless_horseman's picture

...with a Euro-denominated margin account.

Fri, 09/02/2011 - 14:14 | 1627250 walküre
walküre's picture

I gotta admit, I find that strange too! Also there are so many "Black Swan" hedgies propping up everywhere to collect from the ueber wealthy so they get the illusion that in the event of total market armageddon, their wealth is somehow protected.

Talk about the evolution of snake oil salesmen..

Buy this elixir and live forever! No more pains and such garbage.

Trade this way, invest that way and when the end of the world is coming, you and your wealth are protected!

LOL. Too easy to figure this out.

I hear and read about S&P 450 or to S&P 3500 in 3 years. The truth is somewhere in the middle.


Fri, 09/02/2011 - 13:23 | 1627062 Calculo Ergo Sum
Calculo Ergo Sum's picture

So does that mean we should buy Europe?

Fri, 09/02/2011 - 13:29 | 1627088 gmrpeabody
gmrpeabody's picture

Plz don't ask that again.

Fri, 09/02/2011 - 13:39 | 1627114 Seer
Seer's picture

The hidden message is always the same: Buy GS! because, well, because they own and run everything!

Have to wonder how well these folks sleep at night.  Do they have any clue as to what the future holds as projected by history?

Fri, 09/02/2011 - 13:23 | 1627064 Calculo Ergo Sum
Calculo Ergo Sum's picture

So does that mean we should buy Europe?

Fri, 09/02/2011 - 13:25 | 1627071 dclaz
dclaz's picture

I'm reading this on my iPad at the moment and the report won't show up in my browser.

Is there any more details on:
Buy AUDUSD Put Spreads or Receiver Swaptions on AUD Swap Rates

Fri, 09/02/2011 - 13:30 | 1627092 Sequitur
Sequitur's picture

Yes. Page 30. Gives options and strikes. Tried to copy it but Scribd acting up a bit.

Fri, 09/02/2011 - 13:36 | 1627107 dclaz
dclaz's picture

Thank you. I'll just have to check it out in the morning. 3:30am here in aus.

Fri, 09/02/2011 - 15:13 | 1627462 Sabibaby
Sabibaby's picture

It will work, just buy more ipods and watch netflix on them in your lulu lemon pants.

Fri, 09/02/2011 - 13:25 | 1627072 props2009
props2009's picture

So has anyone got an explanation to why would DAX under perform S&P? Guess on findamentals which would you own?

Fri, 09/02/2011 - 13:27 | 1627075 lieutenantjohnchard
lieutenantjohnchard's picture

tough choice here: take the advice of goldman sach or buy gold and silver? hmmmmmm. i'm open to input to help me out with this difficult decision.

Fri, 09/02/2011 - 14:40 | 1627338 Crisismode
Crisismode's picture

Sell your GS shares and use the proceeds to buy PMs.

Fri, 09/02/2011 - 13:36 | 1627109 mendigo
mendigo's picture


some of that looks cut/pasted from zero hedge

should we be worried that goldman is showing signs of honesty

Fri, 09/02/2011 - 13:44 | 1627134 espirit
espirit's picture

Well now, that is one scary thought!

Fri, 09/02/2011 - 13:39 | 1627117 Fortunes Favor
Fortunes Favor's picture

All you need to know for a complete understanding of the average economist will be revealed to you in the following picture.

Fri, 09/02/2011 - 13:54 | 1627131 hedgeless_horseman
hedgeless_horseman's picture



If the world is indeed ending, maybe it is time to take some profits and go long RWB:

The HD is worth the long download time.

Fri, 09/02/2011 - 14:03 | 1627213 AccreditedEYE
AccreditedEYE's picture

Very, very nice. Thx for that.

Fri, 09/02/2011 - 20:24 | 1628588 slewie the pi-rat
slewie the pi-rat's picture

fuk you, too, you selfish, moronic, shitforbrained, little asswipe with "posting priveleges"!

why don't you write something and stick it up yer styoooopid ass as a "contributor"?

Fri, 09/02/2011 - 13:45 | 1627137 delivered
delivered's picture

Not a trader but what ever happened to the good old days of actually investing capital in a productive asset? Every recommondation they make is a derivative of some sort. So my read is simple. GS tells everyone to go all in with paper investments backed by counter parties backed by governments backed by pissed off taxpayers. Sounds to me like they are fueling the paper pyramid towards the eventual collapse yet wouldn't be surprised if GS is one of the biggest buyers of PMs on the market. Learned long ago not to follow any GS advice as either they are full of BS or providing advice that is already outdated.

Fri, 09/02/2011 - 14:21 | 1627273 Sequitur
Sequitur's picture

"Not a trader but what ever happened to the good old days of actually investing capital in a productive asset?"

First, read up on the history of LTCM. Then, a precursor to all that is happening now, read the bankruptcy reports on Enron. Bottom line: much more profitable to bankers to make circular paper trades, skimming fees and interest every step of the way. This is called Wall Street "technology." I promise you this is true, I saw the banker books firsthand pushing all manner of crooked deal -- all of it circular money flows making nothing, creating nothing, moving debt off-balance sheet to deceive investors.

This is American capitalism and global finance today. This is what people pay investment banks for: crooked deals, crooked accounting, yet wrapped in a "plausable deniabiity" package to feign conformance with the FASB rules and the ability to get cases dismissed when burned investors file suit.

Productive assets? Who cares. They're making billions per quarter pushing garbage paper. And the SEC and the FED let them.

Fri, 09/02/2011 - 15:16 | 1627474 hedgeless_horseman
hedgeless_horseman's picture

And the SEC and the FED let them.

Let is such a weak word.  How about enable? 

Fri, 09/02/2011 - 18:41 | 1628339 g
g's picture

Not American capitalism, its American corporatism, government/corporate partnership. I believe Ron Paul said something to that effect.

Fri, 09/02/2011 - 13:50 | 1627141 baby_BLYTHE
baby_BLYTHE's picture

just wait until 2012. The White House thinks unemployment will only be 8% when they have continued to be wrong, projecting this level before the stimulus bill was past.

Little do they know that the largest financial/currency crash is right in front of them, most violent economic storm (brewing since 1971) with the current activity in the gold market suggests we are getting extremely close to the final breaking point

U-6 unemployment will easily hit 40% and Obama will have to fish for an explanation to why almost half the country is unemployed and a 1-hour avg. salary barely buys a gallon of milk

Fri, 09/02/2011 - 13:54 | 1627170 the not so migh...
the not so mighty maximiza's picture

I think the explination will be "it was someone elses fault"  Thats all he does.

Fri, 09/02/2011 - 14:00 | 1627201 Long-John-Silver
Long-John-Silver's picture

You have seriously undervalued Milk Futures. For most people the future price of Milk might as well be infinity.

Fri, 09/02/2011 - 14:20 | 1627269 walküre
walküre's picture

Obama will have to fish


If U6 hits 40%, the only thing left for the Teleprompter is to go fishing or he will starve.

Funny, but complete nonsense. TLC is running the Armageddon specials already. Showing people and how they're preparing.

You know PEAK ARMAGEDDON is here when TLC or such are running shows on it and Goldman issues trading recos.

Time to get the head out of the ass and start looking for jobs or building your own company.

The money will soon come sloshing into the economy. It won't be pretty when actually decent and honest people with a good business idea can borrow a little to build their own business. It will be scary to some..

Fri, 09/02/2011 - 15:08 | 1627429 baby_BLYTHE
baby_BLYTHE's picture

Yeah and with ZIRP till at least 2013, the new money "sloshing into the economy" is going to bury seniors + those living on fixed incomes.
Nixon put in price controls @ 4% inflation rate. According to the MIT price study posted here on ZH, inflation unofficially is already there. Just think how devastating it is going to be once the Chaircreature gets the kind of inflation he has been brewing up this economy up for, this doesn't even include QE3

Fri, 09/02/2011 - 15:27 | 1627510 tekhneek
tekhneek's picture

Inflation's 11% annualized.

It won't be an "overnight" collapse.

In my opinion, they will bleed the corpse dry before they let it pop. This will continue to be a slow, gradual, revisionistic collapse as it was engineered to be. I'm not a conspiracy theorist, I just don't think it's going to blow up as quickly as some say.

Be careful what you wish for.

Fri, 09/02/2011 - 15:50 | 1627582 johnnynaps
johnnynaps's picture

The 1 hour avg. salary is an extremely easy fix, as you could see with the reports today. No one I know has gotten a raise the last year. So many demotions, 2 friends laid off the last week and even my old boss took 4 steps backwards. Yet, hourly earnings ticked up. Hmmmm, really easy to fire a couple peons making 30-50 thousand dollars and give yourself a raise with the proceeds when you are the boss.

This accomplishes 2 things. One, the newly unemployed aren't counted toward the statistics anymore because they have no avg. earnings. And two, the field becomes skewed on the other side of the trade eliminating those pesky lower salaried employees and raising the average at the top. I hate all BS stats that come out of our governments mouth!

Fri, 09/02/2011 - 13:47 | 1627144 AccreditedEYE
AccreditedEYE's picture

Truly, God's work.

Fri, 09/02/2011 - 13:55 | 1627145 Justaman
Justaman's picture

And why do we care what GS says, folks, other than for fodder?  I spit up in my mouth a little whenever I see them in a ZH headline.  Would rather not have them in my life. 

Fri, 09/02/2011 - 14:23 | 1627285 Sequitur
Sequitur's picture

I care what Goldman Sachs says. Remember: "keep your friends close, and your enemies closer." Sun-Tzu, and Vito Corleone.

Fri, 09/02/2011 - 15:16 | 1627476 Justaman
Justaman's picture

Point taken Seq.  I guess instead of vomiting in my mouth I will just piss down my leg. 

Fri, 09/02/2011 - 13:49 | 1627153 bugs_
bugs_'s picture

How to profit from the arbitrage between Heaven and earth - the next GS report

Fri, 09/02/2011 - 13:59 | 1627197 hungarianboy
hungarianboy's picture

can't even download the report

Fri, 09/02/2011 - 14:08 | 1627229 scratch_and_sniff
scratch_and_sniff's picture

Anyone have any idea why the dollar is rallying in the face of operation twist?

Fri, 09/02/2011 - 14:38 | 1627334 Dr. Engali
Dr. Engali's picture

 They need a stronger dollar to sell it. But gold isn't buying it. Gold is rallying with a stronger dollar.

Fri, 09/02/2011 - 15:06 | 1627427 Crack-up Boom
Crack-up Boom's picture

No, but the market loves it - pretty red numbers tick tick ticking across the screen.

Fri, 09/02/2011 - 14:10 | 1627239 Stax Edwards
Stax Edwards's picture

h/t Lloyd Blankfein


Fri, 09/02/2011 - 14:12 | 1627246 MoneyWise
MoneyWise's picture

If world is ending no f*cking body will profit. Period.

Everyone will just turn into dust. Goldman not surprise me at

all, cause they are doing exact appositive, what they are advising

to their clients.. Try to short Equities now, and get 400 points

kick in the A$$ in the couple of days, guaranteed!

Fri, 09/02/2011 - 14:22 | 1627276 walküre
walküre's picture

snake oil salesmen

buy this or trade that to live forever when everyone else is dying!

Fri, 09/02/2011 - 14:27 | 1627296 MoneyWise
MoneyWise's picture

Have a nice ride, Goldman punks..

Fri, 09/02/2011 - 14:19 | 1627267 phraseshifter
phraseshifter's picture

cosmic humor..."gold"-man "sack"-s

Fri, 09/02/2011 - 14:22 | 1627280 Downtoolong
Downtoolong's picture

And remember folks, just in case the world doesn't come crashing down on its own as quickly as they predict, they've still got that Cap-n-Trade bullshit in the their hip pocket to roll over us with one day.

Fri, 09/02/2011 - 14:24 | 1627286 buzzsaw99
buzzsaw99's picture

If buying naked protection is legal then we should all get together and buy $50B worth of life insurance on Lloyd B.

Fri, 09/02/2011 - 14:25 | 1627290 JW n FL
JW n FL's picture



More Austerity!! Games from Washington DC!!


Subject: Taking hostages in a hurricane?

Dear Friend,

The waters have just begun to recede in Vermont. New Jersey is still reeling. North Carolina is just starting to pick up the pieces. But Republican House Majority Leader Eric Cantor is already taking Hurricane Irene's victims hostage.

Truly, Mr. Cantor has no shame. It's outrageous to take advantage of the urgent needs of hurricane survivors in order to advance his radical crusade to cut Medicare, Medicaid and Social Security. But that's exactly what one of the top Republicans in Congressional leadership is doing with his refusal to allocate money to disaster relief unless Congress first offsets that money with cuts to vital government programs.

I just signed a petition telling Eric Cantor to release the hostages and stop blocking funds for urgently needed disaster relief. You should sign the petition too. Click below to take action.

Fri, 09/02/2011 - 14:27 | 1627292 JW n FL
JW n FL's picture



$16 Trillion Dollars???




Wall Street Aristocracy Got $1.2 Trillion in Fed’s Secret Loans




SEC Covering Up Wall Street Crimes?




How about the $2.5 Trillion in Social Security Bailouts??


Fri, 09/02/2011 - 14:33 | 1627316 LawsofPhysics
LawsofPhysics's picture

Thanks JW, all the result of sheep being led to sleep and than slaughter.  Tired of a rigged game?  More people need to simply stop playing.

Fri, 09/02/2011 - 14:39 | 1627326 bid the soldier...
bid the soldiers shoot's picture

Fuck Yeah.

The World is ending and you expect GS to gather on the poop deck, and sing "Nearer My God to Thee?"

I don't think so.

Or maybe go to the Red Cross and give blood?

Fri, 09/02/2011 - 14:41 | 1627340 walküre
walküre's picture


Fri, 09/02/2011 - 14:48 | 1627360 slewie the pi-rat
slewie the pi-rat's picture

tranches, swaps, options and spreads.  got it!

Buy, Buy, Buy, Buy, Buy, Buy, Buy.  got it!


Fri, 09/02/2011 - 15:05 | 1627420 Market Efficien...
Market Efficiency Romantic's picture

Read it before, but thx to GS just recognized why Italy was the perfect playing field for vigilantes to escalate the EUR contagion fear. 5% external debt to GDP exposure. Playing naked CDS^2. You can manipulate the credit market via CDS without harming yourself or your peers in the bond market. Just an intuitive regulatory policy thought: Concerning sovereigns, limit external CDS purchases to the external bond exposure, if you want to avoid credit market manipulation.

Realizing this makes me think that similar contagion scenarios beyond Italy will not escalate in a similarly radical fashion.

Fri, 09/02/2011 - 15:09 | 1627444 walküre
walküre's picture

Uh Oh!

Silvercorp accused of fraud
Fri, 09/02/2011 - 15:11 | 1627454 sudzee
sudzee's picture

Last one out today don't forget to turn out the lights.

Fri, 09/02/2011 - 15:16 | 1627472 PaperBear
PaperBear's picture

Gold at $1,885/oz and silver at $43.49/oz.

Excuse me while I get some more popcorn.

Fri, 09/02/2011 - 15:38 | 1627539 Conax
Conax's picture

Silver up a dollar and a half?   Can't have that!

I can hear the actions being jacked on the tech-9s.

Watch for another driveby shooting late Sunday/Monday.

Damn that natural volatility..


Fri, 09/02/2011 - 15:18 | 1627478 YesWeKahn
YesWeKahn's picture

Tyler, are you sure that this is for GS's best clients? Are you sure that they aren't secretly betting against this?

Fri, 09/02/2011 - 16:16 | 1627720 Market Efficien...
Market Efficiency Romantic's picture

yep, by now, the inner sanctum secret prop desk has probably taken it to the prime clients. Think about this way: What better marketing for your new strategy 'prime customers first... only to be beaten by your prop desk' could there be than, hey we made Paulson the sole superstar in '08. That could be you even bigger in '11. Alternatively to the super secret remaining prop desk, you just play your prime clients by letting Chinese government be your prop desk. it will surely pay off, whenever in the future they look for advise.

Fri, 09/02/2011 - 15:18 | 1627480 MoneyWise
MoneyWise's picture

Monkeys piling up on Gold tree again..
IF by EOD previous highs 1910 not taking out,
another flash is coming next week.

Fri, 09/02/2011 - 15:27 | 1627507 jwalker46
jwalker46's picture

Is there any reason in this world you cannot post a link where we can download the report ????

Fri, 09/02/2011 - 15:38 | 1627548 tekhneek
tekhneek's picture

Not very good on a computer are you?

Fri, 09/02/2011 - 15:53 | 1627599 jwalker46
jwalker46's picture

Downloading is blocked, you can only read it online.  Not very bright, are you?

Fri, 09/02/2011 - 16:41 | 1627828 buzzsaw99
buzzsaw99's picture

take a screen shot of each page one by one that should keep you busy.

Fri, 09/02/2011 - 15:31 | 1627523 chump666
chump666's picture

actually good advice  re: china.  watching Copper sell after the Brazil rate cut put option spreads on the AUD/copper. wise

Fri, 09/02/2011 - 15:33 | 1627532 chump666
chump666's picture

nasdaq about to go 3 neg

Fri, 09/02/2011 - 16:00 | 1627630 tmftdoyle
tmftdoyle's picture

but wan't abbie jo just on cnbc saying all is well! 

Fri, 09/02/2011 - 16:20 | 1627729 andybev01
andybev01's picture

(Fixed this for 'em)


The other night I dreamt of knives,

continental drift divide.Mountains sit in a line;


Leo-nard Blank-fein!


Leonid Brezhnev. Lenny Bruce and Lester Bangs.

Birthday party, cheesecake, jelly bean, boom!

You symbiotic, patriotic, slam book neck, right?


Fri, 09/02/2011 - 16:26 | 1627759 Use of Weapons
Use of Weapons's picture

Such pretty graphs & colour scheme. I was going to go for the obvious Blue Velvet, but this deserves so much better:

Fri, 09/02/2011 - 19:32 | 1628466 dark pools of soros
dark pools of soros's picture

waiting till goldman recommends buying Max's silver coins for the end game vs JPM

Sat, 09/03/2011 - 02:50 | 1629098 Ursa Major
Ursa Major's picture

Does anyone have a clue how to save this or PDF it or otherwise optimise for offline viewing. Surely there is a crack available....any ideas?

Sat, 09/03/2011 - 08:51 | 1629283 Winosawrus
Winosawrus's picture

This is supposed to be a 54 page report - where are the other 6 pages?


Sat, 09/03/2011 - 08:51 | 1629285 Winosawrus
Winosawrus's picture

This is supposed to be a 54 page report - where are the other 6 pages?


Mon, 09/05/2011 - 08:34 | 1633787 shacai
shacai's picture

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