Goldman Tanking
- Thread starter Kilgore Trout
- Start date
So what they did ...
was create a derivative of a derivative. Probably illegal and certainly very unethical. That being said, however, who in their right mind is going to put money into something like that in the first place?? Anyone doing that with other people's money (financial institutions, pension funds, etc. should be charged right along with GS!
Ah, ah, ah.........As an avid listener of the SEC's conference call today, when asked about the Justice Department (the wing of the US Gov that can issue criminal charges), the answer was "we can't comment on that at this time." But when asked about their investigation about CDO's, they said they were investigating all instances of CDO trades (inside and outside of GS). Bank shares tanked after that.......BOOM!
So, keep a watch on The Justice Department. They're next, so is Cuomo in NY. JaJa Smerf knows all about Mario Cuomo.....he fixes his switches. LMAO
Gyaos Baltar.
But Paulson & Co. didn't like to wear longs. They told everyone they were wearing longs, but they were wearing shorts.
Gyaos.
Can someone explain how Goldman made their money...In laymans terms...
I love this stuff...but don't know how the company made the money that eventaully was the billions they made on the 'shorts'
I get that they sold 'TOXIC ' mortgages.....although after that..its all gobblygoop....can someone distill the transactions down for me..
with words of two syllablles or less
I love this stuff...but don't know how the company made the money that eventaully was the billions they made on the 'shorts'
I get that they sold 'TOXIC ' mortgages.....although after that..its all gobblygoop....can someone distill the transactions down for me..
with words of two syllablles or less
Hmm...Goldman is the master of pair trade before the Leverage ETFs becoming available for the retail investors.
For example, Buying long on McDonalds for $10K, while selling short on Starbucks/Tim Hortons when the currency is on par for $10K....
Though sick to the stomach on what Goldman accomplished, I agree never a good idea to have Goldman put!
Doing so would have unintended consequences. That could mean saying goodbye to your "pension/investments/speculations/mad money" since the big institutional investors would have a "show of force" to those unscrupulous politicians of both parties who are pushing for bashing Wall Street a glimpse of things to come when they redeem/sell everything and push the index south to Dow 8000.
It's never a good sign when the boomer voters nest eggs get "punished" again by those institutional investors sell-off after trying hard to get back even. Believe me those boomer voters will gang up and demand those politicians answers why their nest eggs become the casualties on bashing/lynching Goldman of the world, while those politicians enjoy indexed pension funded by taxpayers like those boomer voters.
With regards to this particular case brought up by the SEC, Goldman may not have made much according to their books...perhaps only the $15M in fees from John Paulson & Co. This is just a drop in the bucket compared to the overall shenanigans they pulll of on a day-to-day basis. Goldman Sachs is well known in the industry for the following:
1. Selling their clients securities, while themselves selling those securities short simultaneously.
2. Participating in classic Pump-and-Dump schemes (it was a Goldman Sachs analyst who stated Oil was going to $200 a barrel in early 2008).
3. Front-Running Trades on the stock market (i.e. having apriori knowledge of orders from customers to help trade for their own account).
4. Convincing the government to allow it to call itself a "Bank Holding Company" so it can get access to dirt cheap money (almost 0%) from the FED, and then use those funds to engage in proprietary trading.
5. Building a large long or short trading position from its own trading division, and then using its own analyst division to make an announcement to drive up/down a given security in order to help positively affect that chosen position.
6. Inserting previous employees into key government positions to help pass or interpret laws that make the above listed shenanigans appear perfectly legal.
That's a fine explanation - Goldman apparently made sure the purchasers of the CDOs knew what was in them. So far so good. What Goldman didn't do, according to the SEC, was tell the people buying these CDOs that hey had been put together by a firm that was shorting them. If I were a potential buyer of those products, I would want to know what was in them, how they were put together, and if there were any shorts against them. In that way, I could make an informed decision about purchasing them or not.
It's interesting that the case was filed in civil court. Perhaps Goldman didn't do anything illegal, but they may still be found guilty in a civil action. Regardless, they'll pay the fine and in a few years we'll be debating the newest banking crisis.
Here is number 7. I think they did some sleigh of hand call "repos" for Greece that "legally" took a ton of debt off their balance sheet thus qualifying Greece for EU membership. So, now Greece needs a bailout. To be perfectly blunt, the world would be much better off without this parasite.
Hindsight is always 20/20 and you never think before you act when greed and wishful thinking are involved.
BTW, Jim Cramer is always controversial and being once worked for Goldman as a trader doesn't help to have credibility to prove the case.
Could well be true since the politicians try to pick on the nastiest "alligator" in that neighborhood Wall Street and attempt to make an example for other skeptics to see.
Good luck to those at SEC cause that's all they need. Remember there are way more overrated, overcompensated securities lawyers in SEC who do not have a clue even on their own personal finance than financial professionals/professors from top business schools.
And the laymen in the States have to rely on these stooges who are outgun in terms of budgets and brain powers by the Goldman's of the world to prosecute those essentially well-dressed professional punters. You definitely need a MIRACLE to win the court fight.
BTW, by now it's obvious the French VP hot shots working at Goldman failed to stop acting like stereotype Frenchmen and keep his big mouth shut.
I'll think about it when it's around high 80s, or I get the same double-digit yield deal Warren Buffett had on the preferred.
Still, I am not so sure I am comfortable to invest or have my money at risk in a giant "black box" and "connection" when it comes to the brainpower behind Goldman.
Goldman's got the best lawyers and accountants that money can buy. Would be good if we can get Patrick Fitzerald on this case. Too bad, Elliott Spitzer is in the penalty box.
Exactly, and again good luck to SEC. I wish them all the best....
Or the SEC could give Elliott's buddy, Jim Cramer a call. Jim is an attorney and Elliott's classmate in the Harvard Law School days.
Nah....no former Goldman people for assistance.
BTW, Erin Burnett, aka street sweetie and Jim's side kick used to work at Goldman too. Quite hot for a Brunette, even when she had only neutral foundation and no heavy makeup live on CNBC once.
If they are found guilty they will also have to cover the losses from the buyers of the CDO... that will be about $1B. It will also be interesting if the SEC will then file individual criminal charges against the guys that put this deal together. It is also possible that Goldman may toss the responsible individuals to the wolves to save it's own reputation. There will be emails etc etc and they could get nailed on some pretty nasty charges that would result in loooooooooooong jail sentences.
