GS too good to be true

hilarious

 

I can see it coming -

"We thought we had our risk contained"

 

Good article regarding who has what level of exposure.

http://www.rgemonitor.com/blog/roubini/224871/

 

Goldman Held Bigger Share of Level 3 Assets Than Citi, Merrill

Nov. 12 (Bloomberg) -- Goldman Sachs Group Inc. held a bigger proportion of hard-to-value assets at the end of the third quarter than Citigroup Inc. and Merrill Lynch & Co., two of the firms hardest hit by subprime mortgage losses.

http://www.bloomberg.com/apps/news?pid=20601087&sid=a9yNwqgsVPGA&refer=home

 

Cooking up an old story, published almost on every financial blog...Yawn...

 

But it is not clear whether they are going short or long.
If they are indeed short as the CEO has mentioned in the past; aren't they making a lot of cash. It is a Zero sum game after all.

 

Let´s assume it´s a Zero sum game for them. What do you think is the purpose of GS buying stakes in some hedgefunds like Winton Capital Management, why they are launching two new Funds-of-Funds, why they closed GS Capital Partners VI with $20 billion in committed capital and set up a new program called "GS Direct" to make private equity investments in middle-market companies ?

Simple answer : they are called INVESTMENT Bank...

 

250 soon

 

If and when there is another major fall in the market, it will be led by GS and and BSC. Lots of problems going on behind the scenes that Joe public will find out about sooner or later.

Short the rumor, buy back lower on the news.

 

It's a lot more complex than that, but you have the right idea.