Goldman's Blankfein Says Credit-Market Crisis May Be Half Over

Discussion in 'Wall St. News' started by ASusilovic, Mar 5, 2008.

  1. Goldman Sachs Group Inc. Chief Executive Officer Lloyd Blankfein said the credit-market contraction that started with subprime mortgages is at least halfway over.

    ``We're not in the ninth inning by any means, we're maybe two-thirds through, a half to two-thirds,'' Blankfein, 53, said today in an interview. ``I think it will consume our attention for the rest of this year.''

    Goldman, the biggest securities firm by market value, posted record profit last year, avoiding writedowns that caused historic losses at Merrill Lynch & Co. and Citigroup Inc. Banks and brokerages have recorded more than $180 billion in asset writedowns and credit losses since the beginning of 2007 on securities and loans tied to subprime mortgages. The losses have spread to leveraged loans, commercial real estate and municipal bonds as U.S. economic growth slows.

    ``It's going to be difficult, there's going to be stress and pain, not just for Wall Street but more importantly for citizens, but it is being worked through,'' Blankfein said. ``The signs of it are all the attention, the writedowns, the fact that assets are being disposed of'' and sold to ``more patient capital.''

    http://www.bloomberg.com/apps/news?pid=20601087&sid=aoCEyaYwNUPI&refer=home

    More patient capital...he, he, he...:D
     
  2. Halfway? Wow, someone should start a dead pool to guess which major bank goes under first. My pick would have to be Citigroup at present.
     
  3. ...said the jumper as he passed the 50th floor of the 100 story building...
     
  4. S2007S

    S2007S

    reminds me of when they called the bottom in real estate and that the sub prime fall out wouldn't have any impact on the economy.....hmmmmm
     
  5. look... CNBCs Pisssani said 8 months ago that the subprime crisis was contained.

    goldman needs to stop bitching...
     
  6. Only half over?

    The Dow fell from 14,000 to 12,000 and its only half done?
    I guess my 10,000 target for the Dow seemed correct.



     
  7. I suppose K. Fineman's long Goldman:short Lehman trade is now a heavy diaper....

    the fast money hamsters are at a complete loss for bullshit
     
  8. Bowgett

    Bowgett

    I think he means it is going to continue for a quarter or two.
     
  9. I won't buy it unless it comes from the horse's mouth, i.e. Abby J.
     
  10. Er, does Goldman have a vested interest in people believing it's all over?
     
    #10     Mar 6, 2008