ValueInvestor

Goldman's Hubris

Like Destin pointed to, GS doesn't pay taxes. You're being very ignorant, naive, or both. You manage money? god help your clients.


On Dec 01 08:27 PM Kevin Mulhern wrote:

> Enough of the Goldman hate, what is new in this article that we haven't
> heard hundreds of times? Goldman does some shady things, things that
> any bank would have done had they been capable. They also DO pay
> a ton of taxes and provide necessary stability and liquidity in markets
> as well as indispensable services. If you have a problem with people
> being good at what they do, work somewhere else! To your point on
> trading: since its zero-sum are you implying that anyone who trades
> is committing some kind of moral offense? Sure some people lose out
> on trades, but they benefit society on a larger scale and there is
> no coercion.

All Eyes on Employment

So the Bureau of Labor Statistics (the gov't reporting agency) saying they've been overreporting employment by 800,000 jobs since 2006 isn't unreliable?

800,000 is a huge number. Don't be so naive.

On Dec 02 07:47 AM American in Paris wrote:

> You need to get over this nonsense about government figures being
> unreliable.
>
> The critics of the published government figures have not provided
> solid criticisms.
>
> Government figures are based, as they have to be, on very large samples.
> They are also on very precise definitions.
>
> It is an urban legend that government statistics can be easily improved.
> And certainly not by a one man operation as ShadowStates.

Facebook's Dual Class Shares: Another Reason to Avoid This Company

As a value investor I wouldn't touch a Facebook IPO with a thousand foot pole.

Marc Farber: Gold Will Never Fall Below $1,000 Again

As a commodity trader, saying something like that is absolutely foolish. Saying ANY given commodity will never reach a new high or new low is outrageous. We see it happen all the time.

It might take several years but gold will definitely be below $1,000, its just a matter of time.

Are Interest Rates Headed Up?

"Are rates headed up?"

Well they certainly aren't heading down. Its just a matter of time before they do. I figure the middle of 2010 (or earlier) is when they start raising them.

So You Want to Run a Hedge Fund?

As a hedge fund employee I don't see how a 2% management fee is really all that big. If 100 million AUM is the target that would imply a revenue stream of $2.0 million for a year. In a level or down market, that's the company's revenue for the year and depending on the number of employees it doesn't leave much for insurance, rent, software (databases, market data quotes, MS word, excel), hardware and a myriad of other expenses. This is basically just to cover expenses, which can get quite high when a quoting system is $600+ per month, per machine or a database system is $10,000+. When you get into the billions of AUM then 2% seems high, but for small to mid-sized companies its not.

The performance/incentive fee is where the real money is. I would say 20% is high. 10% would be more appropriate IMO. Also, the SEC should pass a law stating all hedge fund managers should work as a fiduciary for all clients.

More GM-Magna Fallout: What Russia Will Have to Learn

I can't believe he's saying this stuff after all the natural gas bribery, blackmail and extortion the Russians have done to the Europeans.

In a Q-and-A, Jim Rogers elaborates on which homework Nouriel Roubini didn't do ("all of it ... I have a problem talking about a bubble when assets are this depressed from their all-time highs") and says it's one of the few times he hasn't been short anywhere in the world - there's "a gigantic amount of money being printed and it has to go somewhere."

Rogers is getting silly now. He shouldn't compare current prices to their all-time highs, he should compare it to their all-time averages, means or other normal levels.

Just because something isn't back to an all-time high doesn't mean it isn't a bubble.

Oct nonfarm payrolls: -190K vs. -175K expected and -219K prior (revised from -263K). Unemployment 10.2% vs. 9.9% expected and 9.8% prior. Avg. hourly earings +$0.05 to $18.72. Workweek flat at 33.

Just wait until February when the BLS reduces the number of active jobs by the 800,000 they've over reported since 2006. The "massaging"of the data they do is getting outrageous.

Crisis in Context: 'This Time is Different: Eight Centuries of Financial Folly,' by Carmen M. Reinhart and Kenneth S. Rogoff

"this time it's different"

The 4 most dangerous words in finance. When will people learn, times change and the little things might be different, but ECONOMIC FORCES DON'T CHANGE. Debt is debt and it doesn't magically disappear. Who are the morons that believe this junk, oh yeah Alan Greenspan.

Wall Street: Dumb as It Ever Was

Well the BLS said they've overstated job growth by 800,000 jobs since 2006 and will be adjusting the numbers downward in Feb '10 by that amount.

THATS 800,000 JOBS PEOPLE. An overstatement that big reeks of government deception. I wouldn't trust a lot of the numbers they throw out.

Breaking Up the Big Banks: Ackermann vs. Hoenig

I find big banks laughable. They say their size allows them to offer better rates and be more competitive. Well, just look at the rates (mortgage, interest, fees) credit unions and smaller regional banks offer and you'll see the big guys are raping the man in the street.

The too big to fail mantra is getting old.

Commodities: How to Trade Like Goldman Sachs

Where does this author come up with these calculations? Does he know how the futures market works? You can't simply buy Nat Gas at todays price of $4.90 and hold it for 12 months.

"Goldman is very bullish on Natural Gas. Their 3 month price target on Nat Gas is $6.50 while their 12 month target is $7.70. That is a 33% and 57% expected climb."

Uhmm, the 3 month price (March 10) is currently at $5.30 meaning an increase to $6.50 is only a 22.6% increase and the 12 month price (Dec 10) is currently at $6.60 meaning an increase to $7.70 is only a 16.6% increase.

Learn how the markets work before posting junk like this.

What You Don't Know About Gaming Could Make You Obsolete

There have been studies that proved playing "certain" video games keeps the mind active and can increase intelligence and reaction times.

Sure outdoor games can do wonders for the body, but not much for the mind. So a little of both is good IMO.

Google Voice Search Goes to China

I've used their voice search function on my iPhone and its pretty hit or miss. It works well with some words and not at all for others. Common words are done well, but try saying certain names and you'll still be using your keyboard.