Fighting Yoda

Ritholtz, Ratigan Take on the 'Giant Vampire Squid'

Goldman profits simply demonstrate - 'privatization of profits and socialization of losses'. Robber baron era is back with rejuvenated force - shame on BHO and utter remorse for all who voted for him.

Goldman gets richer and populace keeps losing jobs and homes.

Consumer Confidence Index Encourages an Economic Rebound

"Consumer Confidence Index Encourages an Economic Rebound". It should be the other way around - Economic Rebound Encourages Consumer Confidence Index. That is where the problem lies - cart before the horse.

America: The Land of the Fleece Scam

Per WSJ, the latest is banks want to buy their own securities under PPIP. The ultimate self dealing - banks can sell at high price get it financed by tax payer - book the profits, the buyer can incur losses - dump is on the tax payer.

This is what was feared when the program was proposed, it was expected banks would be restricted form doing it, but they could still doo it through front companies. Now all semblance is of fair dealing is given up. We should simply declare US as a banana republic and be done with it.

Seething Over Liddy's AIG-Goldman Connection

AIG is the biggest scam ever. Madoff, Satanford etc are nothing.
Which insolvent company makes its debt/obligations whole? Only if Goldmand/Pualson are at the receiving end.

The system is corrupt beyond belief.

Goldman Sachs One-Upped Wells Fargo in Accounting Shenanigans

Goldman is the evil empire. It always has the administration on its side or in its pocket. FASB 157 is in abeyance, and with regulatory forbearance you can do anything with accounting.

Unless the system is cleaned up, we will continue to have volatility much to the detriment of investors. And guess who bought Goldman issue - institutions - with your pension/401K money.

Goldman Sachs Backlash Is Picking Up Steam

Goldman/AIG CDSs were trading well below par before Paulson made them whole for Goldman. Which insolvent company makes its obligations whole – none – except when you have Paulson/Goldman involved.

MBIA settled the very same CDSs much below par at the same time.

Goldman is simply good at stealing public and investor money –as long as our system of corruption does not implode we will continue to see the same.

Goldman Sachs Backlash Is Picking Up Steam

R4475:

If it was capitalism - why did Goldman take the bailout money, why did they convert to a bank overnight.

If these Ivy leaguers are so smart - why do we continuously have booms and busts. Do you think it was smart to invest in worthless subprime mortgages?

Goldman is simply a politically connected crony. In our corrupt system of Govt. Goldman thrives, while investors suffer. Goldman and the likes are simply shameless crooks out to loot invetors.

On Apr 14 02:57 PM R4475 wrote:

> GS is the Financial master of the universe!
>
> Don`t hate or envy them bc they come from the most expensive Ivy
> league schools and collect millions upon millions in yrly compensation.
>
>
> The criticism comes solely from jealousy.
>
>
> G. Bush himself said, "We shall give every American at least and
> eight grade education". Enough said!
>
> So much undeveloped talent going to waste. Enough Said!

The AIG/Bank Counterparty Scandal Escalates

AIG is a complete fiasco they need a special task force to deal with it.

AIG is being used as a conduit to bailout the system - that to some extent is foreign banks too.

Hank Greenberg, the Ex CEO and founder, is going to testify in Congress tomorrow. His argument all along has been all counter parties should take a haircut. I think that is only fair, it is normal practice - all GM bondholders are being forced into10-12 cent deals.

Overall this mess only gets messier, and we the tax payers keep footing the bill.

Cheap Stocks Aren't Always Bargains - Barron's

Stocks fall for a reason, investors sell them for a reason. A stock is worth what it is today and what it is likely to be tomorrow (whatever time frame), and not what it was yesterday. Just because you bought it at a higher price and not want to realize the loss, may not make the stock price go up. It is always wise to sell stocks that are not doing well – you would have done very well booking your losses on Citi, or BofA, etc ,rather than holding on to them

As regards $5, $10 stocks – history has it that they rarely recover, and most of the money is lost by the bottom fishers. Most importantly institutions and pension funds are not allowed to own (by their own charters) stocks less than $10 or $5. If the biggest buyers will not buy a stock – which way will it go but down.

Geithner's Financial Reform Is Doomed to Fail

The system is completely defective and hence it broke. All current policy is centered on propping up a failed system. It is costing too much and will not work. We still have the same system – the exact same management – CEOs, boards, etc; with the very same perverse incentive structures – golden parachutes, short term profits, etc.

Since the banks were too big to fail so the solution has been lest make them bigger by all these shotgun mergers. Most of these institutions are insolvent and simply too big to succeed (and save). Banks etc have lost touch with reality – their customers. All their business models are centered on quick buck – derivatives etc, and not on giving credit to business for economic growth. GE, with GE capital, is the classic example – 50-60% of its profits come from financing. Now finally Immelt realizes that is the wrong model and they have o revert back to ‘producing things’. Obama is saying the same thing.

G-20 next week all these issues will be front and center, China, Brazil, Russia are making clear they want drastic change, a system led by west and America is unacceptable. Lula (Brazilian president) yesterday said: “Blue eyed white bankers have caused all these problems, they claimed to know everything; facts now show they know nothing”. The only thing western bankers have done last two decades is – create one bubble after another and collect hefty bonuses, with the help of one and the only Greenspan, and now his disciple Bernanke.

Ashamed of AIG

AIG bonuses are an abomination, but the much bigger scandal is payouts to counter parties. Everyone could have easily guessed – Goldman ofcourse. Why are counter parties being made whole, why are they not being made to take a haircut. I am less outraged by $165 Mi bonus than $12 B to Goldman, and rest of counter parties. We as tax payers are on the hook for all this and have to pay bonuses to the fools who got into this mess. Who are these morons that wrote these contracts that do not have an exit clause- company is insolvent many times over – but bonuses still have to be paid. Liddy you idiot just resign (or simply drown yourself), even though he did not create this mess or write those contracts.

The government has a lot of culpability in all this, Liddy is a Govt. appointee and AIG is Govt. owned. This is another botched misadventure by our very foolish government.

As some of us always suspected, some of the institutions have gamed the bailout and are raking in billions – Goldman as always top of the list.

Short Selling: Myths and Facts

Short selling – nothing is at all wrong with it. All market participants and institutions and regulators, academicians have always seen great value in it. It is somehow when we hit bear markets shorts start getting blamed. Shorts provide very important service to the market – price discovery and liquidity.

Lot of studies were done on depression and stock market downfall – the unanimous conclusion after even Congressional studies– shorts did not cause the market slide – it was over valuation and the reckless bullish speculators.

Let us take the case of Lehman – it was insolvent – no run on the bank on liquidity issues no rumor mongering. Unlike Bear it had the Fed window for any liquidity issue. No one wanted to buy it at any price. Its prized asset now has been sold to Barclays for $1.75 B –a third of the estimated distressed price, and Barclays was the only bidder. If the Lehman had any value – someone would buy it whole or parts at decent price- but that was not the case.

Bears are the heroes they have exposed the balance sheets of these institutions. Shorts did not put leverage or the toxic stuff on these balance sheets. The institutions have been lying – “we are well capitalized and everything is marked down conservatively”. All lies.

The action of banning short selling is exposing – what a house of cards there is – even after a Trillion $ bailout – still these institutions are vulnerable. So short selling has to be banned – no up uptick, no naked short banning. Simply a ban.

Just remember shorts are out gunned and out numbered and despised. They have no means to over power the markets. Most market participants are simply long only.

Have lost all confidence in these markets – Govt. has become the biggest manipulator – coming up with these draconian rules on option expiration day (not the first time).

Getting out of the market –closing all my long and short positions. Investing in Gold, money markets, and China – at least the Govt. stays out of the market.

Global Stock Markets: Surviving the Most Turbulent Week Since 1987

Bailout nation. Audacity of stupidity. This dynamic duo of Ben-Paulson have been wrong every step of the way. The bazooka misfired now they want a nuclear missile.

The wall street fat cats must be protected - that is the mantra of the country.

Get out and stay out these markets manipulated by the Govt.

Going to Hell in a Handbasket: The Rush To Protect More Stocks

I am tired of these bailouts and market manipulation by the Govt. Fat cats on wall street must not be bailed out – not by may tax money. These guys screwed up big time – now they raise the boogeyman- too big to fail. Fire all the CEOs – zero the equity - erase the golden parachutes.

Call your congressman- jam their lines. Do something. There has to be accountability – if I screw up on my job – even if it is not me - I get fired. Why are these pompous overpaid fat cats in Wall Street not already fired.

Prepare to Sell Monday - Cramer's Mad Money (9/19/08)

Igonre Cramer, he simply is a populist bubble maker. He has a new knee jerk idea everyday.

However I am bearish on markets - after these market manipulating moves by the govt. - I have lost all confidence in the markets. Will sell out all my remanining positions - long/short - get into gold, CDs, Mmkts.