Goldman Sachs, Merchant of Gloom?

A lot of people must be sticking pins in their Goldman Sachs (GS) voodoo dolls these days.

First, Goldman was responsible for the $200 Oil Price Spike forecast that helped fuel the oil price runup. Then Goldman analysts put the boot in on General Motors (GM) and Citigroup (C) with “sell” recommendations, helping send the market into a tailspin late this week.

The fact that Goldman has so far survived the financial turmoil far better than the (below) average Bear, just rubs salt into the wounds of its Wall Street competitiors.

Speaking of (turm)oil, it’s hard to know exactly what to make of the Energy Information Agency’s annual Energy Outlook in the context of current oil prices. The EIA projects an increase of over 50% in world energy consumption by 2030, but this scenario was based on last summer’s energy prices. The EIA also projects that “in nominal terms, world oil prices in the IEO2008 reference case decline from current high levels to around $70 per barrel in 2015, then rise steadily to $113 per barrel in 2030.” That looks like a pretty attractive scenario these days.

 

 

Comments

[madmilker:]

but the little 4ft lady knows the rest of the story......
www.freewebs.com/rumor...

2008 Jun 28 08:15 AM

[tginomorebush:]

This is an excellent question! What is Goldmans motive?

2008 Jun 28 08:31 AM

[Pauly B:]

I think it is interesting Goldman came out with a sell on Citi Bank now. Where they a year ago? So much for analysts........

I think I will follow Doug Kass from now on.

2008 Jun 28 08:39 AM

[FWallace:]

Goldman Sachs, it should be a crime for what they do...

2008 Jun 28 02:11 PM

[lblaine:]

Goldman was not already short, before they recommended to short Citi?

2008 Jun 28 04:24 PM

[Old Trader:]

It DOES make one wonder just how stout those "Chinese walls" are at GS, doesn't it?

2008 Jun 28 10:59 PM

[mkreisel:]

Since GS shorted its peers on Subprimes, it must destroy other competitors on WS to avoid future retributions.

GS will have won if LEH is destroyed and C and UBS gave up their I-Banking businesses.

2008 Jun 29 12:19 AM

[hermanbrut:]

How to make a ton of money:
1. Short a bunch of stocks using unregulated hedge funds.
2. Keep predicting higher and higher prices for oil until your predictions get up to even $200 causing market to tank
3. Put "sell" recommendations on a lot of big time stocks
4. Do this before November before the political climate might change
5. When market tanks, maybe by August, cover your, opps I mean the hedge funds, shorts
GS probably hasn't thought of this strategy, right?

2008 Jun 29 08:10 AM

[Swiss Investor:]

Making profits based on brains and hard work is the essence of capitalism, isn't it? GS' competitors seemed to lack either.

The possibility of insufficient chinese walls is a different matter of course, but which bank does really have good ones? Just remember Dillon Read's traders, who suddenly lost their magic touch once outside UBS' trading floor.

2008 Jun 29 08:40 PM

[ubsmsgs:]

I have worked at all three. MS is not the firm it used to be. Too much retail distractions. UBS is incompetent on just about every level. Too many managers who don't know what they manage. Too many powerpoint presentations. Too many people lost in process and not getting a job done. GS, on the other hand, is tightly managed, brutely attuned to the intelligence and effectiveness of its management. Driven to make money and accomplish projects - whether on the business or logistics side. Everyone else is just simply jealous - and, for good reasons.

2008 Jun 30 03:12 PM

[muley101:]

GS is more powerful than the Federal Reserve and Congress. They have undone everything the Fed and Congress have done for the economy, and then some.

2008 Jul 01 12:14 PM