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Blankfein Defends Goldman, Is Flippant with Facts

Goldman Sachs provides no worthwhile purpose.
They make nothing, they help nobody.

They trade for themselves with government money.
Ask yourself - for every $ profit they make, who did they TAKE it from?
It's simply a transfer of wealth TO THEM.

Banks should not be permitted to trade for their OWN accounts.

Plain and simple.

What Stories Aren't Being Told?

We are being setup for a huge fall in the markets as everything put in to makes things better fail. Most of the stimulus money so far has gone to the states to help bail them out especially as school started. But the layoffs of teachers is now unprecedented as stated have direverted funds to other 'more pressing' needs.

The sollar has essentially collapsed and even though, oil has not broken out above 75. Why? Because oil demand is falling. The dollar will rally and watch commodity prices fall. When?

Expect current rally to continue into Q3 reporting, then watch out as companies will again take every write-off they can in Q4.

Talk about liar loans [Alt-A], the real issue is liar valuation, where the banks now do not have to market assets to market, but to recovery.

When the big boys [GS] have sold into the public buying and have their shorts in hand, watch how fast the news will turn to doom and gloom from the happy days of recovery we have now.

AIG's Bold Move and Why I'm Shorting the Long Bond

Bashing companies for recognizing their top talent based on industry standards is ludicrous. Just because AIG is getting public funds does not mean they should not pay their personnel and reps as is custom. So you would rahter see them lose their top producres to competitors and insure that the public does not get its money back?????

Perhaps you should be a congressman - they seem excellent at grandstanding petty things - even the use of corporate jets. CEO's time is valuable; and, flexibility and the use of a mobile working environment is just and proper.

The Smoking Gun of the Credit Crisis: FICO

And now FICO's are the problem. Everyone is now on the 'tightening of lending rules' bandwagon. Thus lenders immediately limit the market of buyers.
Second, as more and more people have problems, the avergae scores are dropping.
At some point creditors [sellers] will have to lower credit standards or the markets for houses, cars, white-goods and furniture will continue to shrink. Of course they can lower prices. Not just offer lower priced options, but lower prices on the same item - costs are dropping.

And what about the car pirces? House prices come down, commodity prices come down - even food us dropping as shipping costs are lower.

But not those car prices. Discounting is not lowering. When someone actually lowers prices on an established model instead of giving rebates, they will set the new trend as telling it like it is. Peopl will flock to the truth-teller.

As for US legacy employment costs, the unions have caused a wage bubble - no forklift operator should be getting $103K. No person who attaches part A to part B should be getting a 73K package.

There is only one solution - you have to get rid of the union contracts and BR is the only way.
The government then has to do two things - guarantee car warrantees and underwrite the mortgages of the autoworkers who have bought based on their inflated wages and will require mortgage assistance,

This is the cheapest way out! Otherwise, they come back to the trough.

The Hedge Fund of America, LP

The plan will buy assets in clearly defined tranches by permitting the holders to offer selling prices [reverse auction]. This means the first sale, where say $50B will be bought, will attract those who most need to raise cash - WB for example. The first $50B of the best prices are taken in for cash. The next tranches will probably yield a higher price for the sellers as the more toxic stuff will go first, but those who missed the boat the first round may again push prices down since there will still be some desparate sellers.

Such wholesale sales are great for the buyer, and this buyer has deep pockets. You will almost immediately see hedge funds wanting to get in on the action as the prices move up in successive auctions. Watch some stuff be sold immedaitely after purchase in some cases as the smart money will realize that the next sale will be at higher prices.

Thus the $700B credit line revolves and more than $700B in stuff can be moved from the banking system to other hands - hands other than the government as well.

The tax payers will win and win big as only the government can lend borrow at graet long term rates and hold for long term. The FED is the lender of last result, but the government is the buyer of last result.