ain't no fortunate son

Has Goldman Set a Dangerous New Precedent By Folding on Subprime Lending in Boston?

oops, just saw your's erin - that still leaves C and JPM as prime meat for GS.

Has Goldman Set a Dangerous New Precedent By Folding on Subprime Lending in Boston?

Mike, you are so spot on - I went out hiking for a couple hours up here in VT after the market closed and just walking in this cool clean air up here in the woods really lets me think uninterrupted by the noise of the day, and it just hit me this was the perfect reason to roll over and play dead for GS... its perfect.

Think of it - they take maybe a 1.5 -2 Billion $$ hit (most of which they've already hedged no doubt, or set aside from the proceeds of the AIG/taxpayer settlemet) and they set off a schitstorm for the top dogs in the list. They're 15th - ALL their major competitors are higher up than that and people like JPM, C, BAC/Merrill could be really hurt, to the tune of tens of billions each... and you can be sure GS knows damn well those guy's assets are in a lot worse shape than the stress farce indicated.

They've already rid themselves of Lehman and Bear, now they can put a big hurt on a lot of other competitors - especially BAC/Merrill.

It fits, its the perfect solution for them and yes, they are the evil empire where nothing is beneath their Machiavellian aspirations.


On May 13 04:13 PM mikebrah wrote:

> Or...it was another genius move by the evil empire that is GS. Think
> about it, they set a precedent that would disproportionately hurt
> their competitors for the price of $60M that sounds like a bargain.
> Although I guess GS is now susceptible to further fines but it sounds
> like all their fellow oligarchs will be much more severely hurt.
>
>
> In their heart of hearts, all members of an oligarchy truly crave
> a monopoly.
>
> MM

Has Goldman Set a Dangerous New Precedent By Folding on Subprime Lending in Boston?

I saw that article yesterday and immediately had the same thoughts as the author - what was GS thinking of and "look out Nevada, CA, FL, Arizona... etal?

Either they capitulated too easily (Goldman? Not a chance in the world) or they knew they didn't have a leg to stand on.

They have opened up many pandoras boxes however you look at it... 1.2 million salivating lawyers indeed.

Corporate Fraud + Government Intervention = Bailout Nation

The manipulation, meddling and intervention in our capital markets by FED. SEC and Treasury, all performed to bail out their pals, will possibly calm the sheep in the short term, but ultimately it will just cover a festering wound that will cripple this country and very possibly the world economies.

The hundreds of billions of dollars of discount window borrowings rewarded to the investment bankers since the Jan/March meltdowns has not gone to ease the liquidity crisis, it has simply gone to creating the biggest day traders on the street... what the IB's don't trade, they lend to the hedge funds they spawned over the past 10 years to trade, and now we see huge volatility that is nothing more than the IB's and hedges jacking futures and stocks in either direction in a concerted effort to make trading profits.

Mortgage rates are higher now than they were a year ago despite the Fed's rate cuts, commercial bank borrowings at the discount window are rising rapidly, and still the culprits dance!

Tick tick tick...

On Short-Sellers and Dishonest Executives

Markham, like jlounsbury59 I am reprinting my comments from your other article:

Good luck Markham... many "investors" made one decision buys on stocks a year or two back and have been buying down/catching the falling knife ever since under the mistaken premise that bear markets bestow wondrous "bargains" on the uninitiated, without ever once getting humble and looking at their own decision making process in the losses THEY have sustained... these people aren't going to be patient with ANY type of short selling. Read the message boards... these people are blaming the shorties, the naked shorties, the media, the "manipulators", the bashers, the SEC, the hedgies, their dog, the man in the moon for their losses... never once are they looking at the fact that it was THEY who kept buying into this bear market disaster.

You're a convenient target for people who can't look in the mirror at their own responsibility for their misguided investment decisions.