And you thought Goldman had it bad in the US. The FT reports: "Many people believe Goldman Sachs, which goes around the Chinese market slurping gold and sucking silver, may have, using all kinds of deals, created even bigger losses for Chinese companies and investors than it did with its fraudulent actions in the US,” read the opening lines of an article in the China Youth Daily, a state-owned daily newspaper, last week." Matt Taibbi - you have met your match, and the outcome is picturesque indeed - a vampire squid that slurps and sucks its way to every loose ounce of gold and silver. But fear not, all those millions of ounces in GLD are perfectly safe and sound.
The article continues:
The article was widely distributed through commercial news portals and the website of government mouthpiece Xinhua News and the People’s Daily, the Communist Party publication.
Referring to Goldman as a “black hand” that “played little tricks carefully designed to gamble with Chinese enterprises”, the article made few specific accusations of wrongdoing by the bank.
The report followed similar commentary and articles published in publications including the 21st Century Business Herald, one of the largest financial newspapers in the country, and New Century Weekly, a liberal magazine.
The reports were highly critical of Goldman for designing and selling oil hedging contracts to state-owned Chinese companies that then lost billions of dollars when oil prices plunged, contrary to Goldman analysts’ predictions, in 2008 and 2009.
“Goldman has just been so successful in China, but this is one of the perils of success here,” said a senior banker at one rival in China.
“Many of its domestic competitors and some in the government are very unhappy that they have been doing so well lately.”
Did anybody tell these people how many "losing" trading days Goldman had in the latest quarter/year? Joking aside, we do find it somewhat ironic that the company which brought capitalism (or at least the Goldman-centric version thereof) to China is now being openly attacked for being "too successful." It really is time for Buffett to MBO the squid and get the public company farce over with (that means only another $30 in GS downside before the Oracle announces his true intentions). We are sure that Goldman can pull enough strings where even as Buffett's last hypocritical hurrah, it will still have full discount window access, even as a fully private hedge fund. Because the last thing Goldman needs is to be the primary scapegoat of a better way of life gone horribly wrong for 1.3 billion angry Chinese. On the other hand, look for the American Idol empire to promptly move to Beijing with Goldman's blessings and venture funding - when all else fails, prime time distraction with moronic entertainment for an increasingly lazy middle class always seems to get the job done.