Reinko

Goldman Sachs Raids the Cookie Jar

Ah that leveraged stuff, wonderfull...

When a bank is leveraged 25 fold with respect to market cap and (borrowed or invester) assets, then just a 4% decline gives rise to a total wipe out of all market cap.

This explains that 'just a tax dispute' in 'just a segment of the leveraged department' gives rise to 50% less dividend and dillution of outstanding shares...

There are many ways to measure leverage but market cap to assets is one of my favorites because the banks are constantly telling that they are working on the leverages, but when stock value declines those leverages are still climbing...

Welcome to the world of Alan Greenspan!