Just to be thorough... Alan Greenspan; he was an advisor, an idea man as some would say, all the above could have or should have known he was possibly wrong! Not only that he seems like he had a mental breakdown years ago probably from the realization that he was dead wrong and couldnt comprehend the devastation that was looming!
FWIW Anyone with an extra thousand bucks and some insider info on Friday morning could have made just shy of a million and a half by Friday afternoon. There was surprisingly large volume in these âout of the moneyâ puts the days before⦠who in their right mind would bet on such a large fall for such a typically stable company? Someone who knew what was coming. Maybe someone in the SEC should look into that, too. Heh. Maybe someone already did. In case you missed it, hereâs the quick and dirty on the SECâs suit against Goldman Sachs: * Uber-billionare hedge fund manager John Paulson -- the guy that was oh-so âsmartâ to see the subprime fiasco coming -- allegedly pays Goldman to assemble a CDO of destined-to-fail mortgages, which Paulson then bets against. No problem there, happens all the time. Paulson is not named in the suit * Goldman pockets Paulsonâs fee (in some way or another) then turns around and sells these securities labeled triple AAA to investors in Europe. They end up spread across banks in Holland and Germany. The SEC claims no party was informed the CDO -- called Abacus 2007-AC1 -- was built to fail. Oops. Fraud by omission * Goldman, at some point, also bets against Abacus 2007-AC1. âHedgingâ Goldman calls it. Following Paulsonâs lead⦠meh, maybe not such a bad move, but not exactly on the up and up, either. Still not likely criminal. Paulson banked a billion when Abacus 2007-AC1 blew up. Goldman got to keep Paulsonâs fee, the profitable sales of Abacus and its own hedge profits⦠though it still claims the lost money in the long run. The SEC lawsuit itself is, like the one they filed against Bank of America for lying to their shareholders, far from frightening. Itâs civil, not criminal -- no oneâs going to jail. The complaint cites about $1 billion in fraudulent transactions. Goldmanâs market cap is $84 billion. And thereâs already a no-name patsy lined up: Fabrice Tourre, the ONLY Goldman employee named in the SEC complaint. A French guy, to boot. How sweet. The worst damage Goldman is going to see out of this may already be done. Goldman stock fell 13% Friday, wiping out $10 billion in shareholder value. If history is any guide, the media will do their best to make a real story out of this over the next week. Goldman will get a slap on the wrist later this year⦠and back to business as usual. Are you shocked? Câmon. This kind of fraud happens all the time. âNow that the SEC announced it is charging Goldman Sachs with securities fraud,â writes our Dan Amoss, âmaybe weâll see a long overdue shift to prosecuting the fraud that permeates the financial system. âWhile more prosecution of fraudulent mortgage origination is nice, accounting is the bigger issue that regulators need to deal with. âMark-to-mythâ accounting is taking the U.S. banking system down the same path as post-bubble Japan. âWhile we need to see the SEC push for a return to honest accounting in the banking and brokerage sector, but Iâm not holding my breath. The Treasury Department has trillions in new bills, notes and bonds to sell over the next few years, and it needs the primary dealers to assist in the greatest intergenerational theft in history.â Dan wasnât in on the 140,000% returns on Friday, but you can sure bet our copywriters wish he was! If you think this Goldman story is going to tank the market, now would be a good time to investigate Danâs rationale behind an impending correction. You can do so, and place your bets, for $1, right here. Funny, too, how the Goldman suit was announced a week before the first vote on financial reregulation in Congress. At this point, not even the most upright Republican (heh, we know how funny that sounds, too) will stand in the way of Chris Doddâs financial reform bill. Main Street ire for the Wall Street hustle is boiling over and the political will is thereâ¦bankers, traders, shorts, selling anything synthetic⦠theyâre coming after you next. Your favorite community organizer has already scheduled his trip to New York this Thursday to discuss the financial reform bill. Europeans donât want to miss out on the fun either. Britain and Germany are already publicly mulling suits against Goldman on their own. Gordon Brown was really mean. He said Goldmanâs maneuvering showed a certain âmoral bankruptcy.â Ouch. Considering the fiscal condition of the U.K., thatâs pretty funny as well. The S&P 500 fell 1.6% on Friday, almost solely on the Goldman news. What kind of rational investor sells his shares in U.S. Steel (down 3.5%) on Goldmanâs problems? The kind that has margin calls, redemptions and quant models insisting he does so. GLD, the physical gold ETF, fell an unusual 2.1% on Friday, too. Again, what kind of right-minded investor sells his pseudo-gold on word of an unraveling financial scandal? The kind thatâs worried about John Paulson. The prevailing excuse for GLDâs fall on Friday was Paulsonâs massive stake in the fund, the largest of any individual investor. Maybe the scrum would force him to liquidate, the thinking went -- better to get ahead of it. Bullion, too, took a hit. The barbarous relic fell $20 on the Goldman news, but has stabilized at $1,135. Heh. Gold ainât what it used to be. So with all the fuss, is today a good day to sell your stocks? âFridayâs breakdown in stocks,â writes Options Hotline guru Steve Sarnoff, âled by weakness in the financials, might ground highflying bulls like ash from the Icelandic volcano grounded European air travelers. âWe shall see if stocks are now set for a serious correction to unfold over the weeks ahead. My indicators see an increased likelihood that will be the case.â
The embattled Wall Street firm [GS] has nearly doubled its lobbying budget over the past year and shifted its political contributions from Democrats to Republicans, according to newly released documents.
I can say something to you along those very lines but I tend to refrain replying to people who are recently registered(no credibility) or people who have a lot of useless posts to their credit (again no credibility).
Goldman is doing what every broker/dealer is doing. trading their own accounts... trading against clients/taking the other side of the trade commissions and fees from inactive institutional clients don't buy that 2 billion dollar office and million dollar bonus and earnings for their shareholders.
$50.00 is where it was when this all started!! It would have to go lower I say $22.00 This is just an orchastrated move that should have been completed in 2008, if the government hadnt slid into home and saved the game for GS. This company has a crazy business model, one that only the Cocaine crowd could like! But the rest of the world thinks it has lost its bearings. Lyold probably has no idea what 98% of the company is doing!