• Knave Dave
    05/23/2016 - 18:16
    This past Thursday marked the one-year anniversary of the US stock market’s death when stocks saw their last high. Market bulls have spent a year looking like the walking dead. They’ve...

It's Not 2008, It Is 2007: Goldman Global Alpha Just Blew Up All Over Again

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Wed, 09/14/2011 - 20:29 | 1671205 Spirit Of Truth
Spirit Of Truth's picture

right on time.

Wed, 09/14/2011 - 20:33 | 1671220 DeadFred
DeadFred's picture

On time for what? They could have announced this days ago or days from now, so why did they chose today afterhours. It may be random but I doubt it.

Wed, 09/14/2011 - 20:44 | 1671269 IQ 145
IQ 145's picture

You know something; I doubt it too. A "little" paranoia is a good thing nowadays. I didn't consider it as spin until you mentioned it; it does make pretty good spin.

Wed, 09/14/2011 - 20:56 | 1671319 Thomas
Thomas's picture

Maybe today's march upward was a forced liquidation (of a short position). The other, seemigly innocuous, oddity was that Central Fund of Canada marched up with the market instead of down with GLD/SLV. It was a large 3+% differential.

Who would voluntarily invest in these markets. Oh, that's right: anybody who has to somehow protect their falling cash positions. It is time for this turtle to come home.

Wed, 09/14/2011 - 21:10 | 1671367 TheLooza
TheLooza's picture

Agree. Let me know when it does, thanks.

Thu, 09/15/2011 - 10:54 | 1673348 mkkby
mkkby's picture

How is being down 12% blowing up?

Wed, 09/14/2011 - 21:15 | 1671384 jbc77
jbc77's picture

Great post thomas. My thoughts exactly.

Wed, 09/14/2011 - 20:47 | 1671284 WestVillageIdiot
WestVillageIdiot's picture

This is a very mysterious event.  Usually these announcements are timed to royally fuck over some option position I have taken.  Currently I have no option position so this doesn't make sense at all.  There must be some other way this is going to screw me.  There is no other explanation. 

Wed, 09/14/2011 - 21:13 | 1671375 chinaguy
chinaguy's picture

Thanks, best laugh I've had in a few days......

Wed, 09/14/2011 - 21:16 | 1671389 Axenolith
Axenolith's picture

Check the closet and under the bed before you retire for the evening... ;-)

Wed, 09/14/2011 - 22:38 | 1671617 Blano
Blano's picture

I have the same problem.  They're trying to lure us back in, that's what it is.

Thu, 09/15/2011 - 00:13 | 1671890 LongBallsShortBrains
LongBallsShortBrains's picture

You either left an open order or forgot about a position/ got a partial fill exit.

Thu, 09/15/2011 - 00:53 | 1671991 Melin
Melin's picture

Thanx for that...at least we're going down laughing

Wed, 09/14/2011 - 21:17 | 1671392 AmCockerSpaniel
AmCockerSpaniel's picture

Nothing just happens on WallStreet

Wed, 09/14/2011 - 21:41 | 1671458 Tijuana Donkey Show
Tijuana Donkey Show's picture

Management LBO.... Why pay more? 

Wed, 09/14/2011 - 20:41 | 1671259 DormRoom
DormRoom's picture

you run for the doors when Reconnaissance Technologies starts to report a loss.  That hedgefund is MASSIVELY leveraged, and has HFT bots embedded in every market.

They are LTCM^666

When they start to deleverage, the financial world blows up.

Wed, 09/14/2011 - 20:48 | 1671283 jballz
jballz's picture

do you mean

renaissance technologies?


Wed, 09/14/2011 - 20:50 | 1671294 WestVillageIdiot
WestVillageIdiot's picture

I thought Reconnaissance sounded cooler. 

Wed, 09/14/2011 - 20:53 | 1671309 X.inf.capt
X.inf.capt's picture

it kinda does,

good night, west

Wed, 09/14/2011 - 20:48 | 1671288 IQ 145
IQ 145's picture

Reconnaissance Technologies; eh? Thanks, I'll try to look that up. I just love LTCM; what a great name; they long term managed their clients money to what 8 cents on the dollar; something like that. Couple of professors with a big computer that didn't know shit about real markets. Hilarious.

Wed, 09/14/2011 - 20:52 | 1671304 WestVillageIdiot
WestVillageIdiot's picture

The world's best oxymorons:

-  Military intelligence

-  Jumbo shrimp

-  Paper gold

-  Long term capital management

Wed, 09/14/2011 - 21:05 | 1671349 Rodent Freikorps
Rodent Freikorps's picture

Young intellectual.

Wed, 09/14/2011 - 21:04 | 1671347 rosiescenario
rosiescenario's picture

..uh, they were actual Nobel prize winners....and it was then that Lehman's fate was sealed...When Genius Failed...a good read.

Wed, 09/14/2011 - 21:41 | 1671456 Imminent Crucible
Imminent Crucible's picture

"they were actual Nobel prize winners"

....like Obama, the prince of whirled peas?

Thu, 09/15/2011 - 00:20 | 1671912 Freddie
Freddie's picture

"Eat your damn peas!"

Krugman is another one who "won" a Nobel.    I never read the LTCM book but read some excerpts.  One of the best bits was when the head of the fund John Meriwether (Ex Salomon and U of Chicago MBA) was panicking.  He brought up some Italian guy with a high school education who dressed like a mobster but he knew trading. Meriwether is saying he could go to Buffett or Soros etc etc.   The guy was street smart and told Meriwether that it was over. He had looked at the portofolio and told Meriwether that everyone else would pounce on them.  The same pile on Lehman and Bear to kill them off. 

Hilarious that a high school educated guy with street smarts knew 10X more than a bunch of Nobel prize winning PhDs.  Supposedly they all became golf bugs in Greenwich and Myron Scholes was trying to work out the mechanics of the golf swing.  The idiots used a small sample of data for their models with no tails/black swans.  The house was on fire while they were out playing golf.

Wed, 09/14/2011 - 21:23 | 1671412 jdelano
jdelano's picture

If madoff's perennial 12% returns were labeled extremely suspicious after the fact...why has nobody realized that Simon's private fund is some kind of massive fraud? All the MIT wizards work in the public fund--the closed fund is just Simons and his relatives/buddies at work--my guess is that they use the open fund to boost positions already held in the private fund--then the private fund immediately exits. Can't wait until somebody blows the lid off renaissance...

Wed, 09/14/2011 - 20:29 | 1671206 Henry Chinaski
Henry Chinaski's picture

I gotta figure that most ZH readers are already ducking and covering. But, thank you for letting us know!

Wed, 09/14/2011 - 20:53 | 1671307 WestVillageIdiot
WestVillageIdiot's picture

By now most ZHers are working feverishly to secure the steel plate to cover up their anal opening. 

Thu, 09/15/2011 - 00:47 | 1671981 Think for yourself
Think for yourself's picture

Made me laugh, big time.
I guess I'm a good exemple of this as I am a chronic procrastinator and always wait for overconfirmation before heading one way or another.
I exiled myself from the system pretty penniless in 2010 (didn't think it through, no PMs at all) and have been saving while travelling SA and working in bars, hostels, teaching english and what have you. Still saved enough to buy 12oz Ag in the last year and just made my first buy of Au monday, a very modest 1/4oz. Price still seems good, don't care if it dips further considering the fundamentals, at least I got rid of those darned FRNs and now have some 24k sheet Au to cover my ass with.

Wed, 09/14/2011 - 20:32 | 1671207 Long-John-Silver
Long-John-Silver's picture

and so the second dip begins.


and it's gone......

Wed, 09/14/2011 - 20:34 | 1671224 Cistercian
Cistercian's picture

The new deeper and wider crater is just ahead!
This time with even more thieve-o-matic enhanced systemic FAIL!

Wed, 09/14/2011 - 20:38 | 1671249 Mactheknife
Mactheknife's picture

It's amazing what 30x leverage will do for you. LMAO

Wed, 09/14/2011 - 20:46 | 1671276 lolmao500
lolmao500's picture

And since Europeans banks are at 70X+ ratio, shall be even more amazing.

Thu, 09/15/2011 - 03:31 | 1672214 UGrev
UGrev's picture

I think "Abyss" is the word you're looking for...

Wed, 09/14/2011 - 20:30 | 1671210 DeadFred
DeadFred's picture


Wed, 09/14/2011 - 20:31 | 1671212 Robslob
Robslob's picture

BUT BUT BUT...you just said that meant 200 S&P points up before 400 down?!?!?!



Wed, 09/14/2011 - 20:34 | 1671231 wombats
wombats's picture

Who cares about S&P?  NOBODY.  Just PLEASE tell me that the Goldman bonuses won't be hurt!!

Wed, 09/14/2011 - 20:59 | 1671325 Thomas
Thomas's picture

Not to worry. The last time it looked like the bonus pool might be small and their last, they took really, really big ones. Looting the accounts is a predictable response for all banana republic dictators.

Wed, 09/14/2011 - 20:32 | 1671216 MFL8240
MFL8240's picture

Couldnt happen to a nicer group! FU Goldman.

Wed, 09/14/2011 - 20:43 | 1671265 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

The world is a vampire................

Wed, 09/14/2011 - 20:33 | 1671219 sunny
sunny's picture

Aaaah shit....2007???   We gotta wait another whole year for the 2008 echo? 


Wed, 09/14/2011 - 20:35 | 1671235 DeadFred
DeadFred's picture

History doesn't repeat, it only rhymes.

Wed, 09/14/2011 - 20:34 | 1671229 AmazingLarry
AmazingLarry's picture

Thought I read Reggie Middleton saying something to the effect that they cannot trade. Shame, they're such a bastion of market health and happienss. 

Oh, and fuck you Lloyd.

Wed, 09/14/2011 - 20:34 | 1671230 Id fight Gandhi
Id fight Gandhi's picture

Hey how do you add your twitter name on this so we can all chat during the day? I see a thing for it... Im "FightGandhi"

Wed, 09/14/2011 - 20:35 | 1671236 steelhead23
steelhead23's picture

Anyone here have the balls to short GS on this news? .....I thought not.

Wed, 09/14/2011 - 20:41 | 1671256 Henry Chinaski
Henry Chinaski's picture

No. I have not the balls to trade anything in this market and am standing pat in GLD, SLV and cash, along with mostly diversified real unleveraged unencumbered physical assets.

Wed, 09/14/2011 - 20:56 | 1671317 Id fight Gandhi
Id fight Gandhi's picture

Being a eunuck has it's advantages.

Long or short this mkt and you're bound to get kicked in the nuts.

Wed, 09/14/2011 - 20:51 | 1671300 IQ 145
IQ 145's picture

Fuck no; I think the anouncement is spin to suck some more retail shorts in.

Wed, 09/14/2011 - 20:57 | 1671322 Id fight Gandhi
Id fight Gandhi's picture

There's no measureble retail in this mkt.

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