Welcome to another segment of Wall Street to Main Street, It was highly anticipated over the weekend that Goldman Sachs would do some type of raise to eliminate the TARP funds that they were given, not the TARP funds that they asked for the TARP funds that the U.S. Government put in their laps. There is a big difference with companies like General Motors or AIG asking for a bailout while other companies such as Goldman Sachs, JPMorgan Chase and even Wells Fargo having no choice but to take it.
Poor Bank of America was nailed to the cross on that Merrill Lynch deal, a deal that the powers that be on Capital Hill asked them to do. Its like an older sibling telling you to do something ridiculous and turning his head the other way when you got in trouble.
Goldman Sachs raising the capital to eliminate the debt is understandable, they are such a well rounded organization and produced some of the top talent in the financial industry from former Treasury Secretary Hank Paulson and CNBC’s Jim Cramer to the owner of the Tampa Bay Devils Rays Stu Sternberg, so they have a knack for producing the best of the best. They will be , if they aren’t already, the top brokerage company not only in the United States but globally. When Goldman dropped into the $80 range I though it was a travesty but it was a going with the market flow situation, but then in one of my articles I called it one of the biggest opportunities for investors as we head towards the biggest transfer of wealth in the United States since the 80’s.
Other companies that fit the bill of rising from the ashes both stock price wise and business wise, and I am repeating myself from my earlier article, they include Citigroup, the company even with a 4 or 5 to 1 reverse split is still a bargain as it is just a matter of time before they split the company into two different companies, kinda reminds me of 1991 when the stock was at $4 and over 3-5 years jumped into the mid double digits. Others are JPMorgan Chase, Jamie Dimon is the KING of all banking, that stock as with Goldman and Wells Fargo was just a victim to the sector situation.
Now lets jump to General Motors and Ford, not even talking about Chrysler as they are private and with Nardelli at the helm it just got a big “Whatever” from me, I see Ford being the last man standing, and General Motors at some point being merged into Ford. I think that General Motors should go bankrupt to stop the bleeding, eliminate the United Auto Workers Union as that has been a big strained on the growth of the US Auto Manufacturing industry and roll it right into Ford. A move like this would be the beginning of the US jumping head first into being the leader in Manufacturing once again.
Granted with China opening the doors for US based companies to build manufacturing plants over there is presenting some challenges for other manufacturing sectors. So this is a one step at a time situation.
Its amazing how the United States went from being a true powerhouse in the Manufacturing arena and being known as a manufacturing country to becoming a servicing country, that was the problem we forgot where we came from, but it seems as President Obama may be on the right track in repairing some of those mistakes in history.
At some point this week I will be speaking about individual companies that are flying under the radar, and of course I do not have the line on all companies so I do look at the emails and Tweets that I get from listeners and readers of Wall Street to Main Street, so keep those coming.
Remember that you can now find me on Twitter, I am new to it so looking for the support of our readers and listeners to make it a tool to keeping in tune with everyone as thoughts just flow through out the day, everyday but I do not write articles or do a show on every short thought I have on a situation.
In closing for today I’d like to commend the United States Navy for their success in bring back Captain Phillips safely and to answer a number of emails from listeners/readers no I have not been invited to be on Bloomberg Radio as of yet.
Follow me on Twitter as I try to build up my micro blogging skills to keep in touch with the readers and listeners of "Wall Street to Main Street" and the NAMC Radio.
'Wall Street to Main Street'