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Thread: More economy, this time its actually funny!

  1. #1

    More economy, this time its actually funny!

    As y'all know I spend hours a day up to my elbows in the eco-blogs, and the news is grimmer than ever, but this brilliant post about the GS madness today made me laugh so hard I thought I'd share it with you...


    The End is Nigh: How Goldman Sachs Triggered the Apocalypse
    Submitted by Benjamin N. Dover III on 04/17/2010 14:22 -0800

    Capital Markets CDO Collateralized Debt Obligations Erin Burnett Exchange Traded Fund Goldman Sachs Google Hong Kong Russell 2000

    In case you?re wondering, that whistling sound you hear is the sky falling. When Erin Burnett stays late to host a special report on something, you know it?s a ?game-metamorphosizer?. Why else would all bank stocks tank because a firm they?re not affiliated with was charged with non-criminal fraud in one transaction after months of SEC digging? Why else, at this very moment, are traders in Tokyo and Hong Kong counting down the minutes to when they can sell every last security on the planet ahead of the rest of the world this weekend? Why else would the price of gold ? the ultimate refuge in times of uncertainty ? be falling?

    The simple fact that the market knows is that there is no uncertainty: Armageddon is upon us, and thus all the gold in the world has no value.

    In its infinite wisdom, the always-rational, level-headed market knows that Goldman is finished once and for all. In fact, it?s already just a memory. A civil case whose maximum damages, including treble damages for fraud, are $3B could easily bankrupt a firm that had only $45B in revenue last year. Especially since there?s no chance this case will be settled without a trial for a small fraction of that amount. Why else would the only Google search term related to GS that?s more popular than ?Goldman Sachs fraud? be ?Goldman Sachs careers?? Everyone knows that the imminent liquidation will require lots of manpower and overtime. And even if, by some miracle, GS emerges from the SEC and inevitable investor litigation without resorting to Chapter 7, no one will ever do business with them again, which will cut their revenue to $0.00, which will require them to resort to Chapter 7.

    And GS deserves to be destroyed for this particular transaction. To put their egregious behavior in the complicated CDO market in perspective, let?s break it down in terms of equities:

    Let?s say a sophisticated investor ? call him ?Johnny the Jackal? -- tells an investment bank ? call it ?Dewey Goldmanthem & Howe? -- that he thinks a select group of stocks in the Russell 2000 index is a real dog. He asks the investment bank to create a new ETF that tracks the performance of the stocks he selected so that he can short it. The investment bank agrees, takes a fee, and unveils the newest ETF, the ?Bow Wow 30? (ticker symbol: WOOF). Now let?s say a second sophisticated investor comes along ? call it ?Head-Up-Our-Ass European Bank? -- and says they believe the Bow Wow 30 represents the best companies on earth, and they want to go Hail Mary long. Even if DG&H doesn?t have a crystal ball, and even if it?s not sure which way the Bow Wow 30 is heading, it has a make-believe fiduciary duty under the pretend law to tell Head-Up-Our-Ass European Bank that there?s another investor who thinks the Bow Wow 25 is flea-ridden. Sure, Head-Up-Our Ass has analysts, lawyers, consultants and accountants who could do their homework on the companies in the Bow Wow 30, but it?s up to DG&H to tell them Johnny the Jackal knows better than them. That?s why every time you want to buy a security your broker sends you a list of all the people who've shorted it. GS broke the law because it didn?t provide the short list.

    In addition to being the polite thing to do, this rule serves the important public policy of dissuading potential investors from investing whenever another investor disagrees with their judgment. The efficient functioning of the capital markets is all about no one buying when someone else wants to sell and no one selling when someone else wants to buy.

    Not that politeness, public policy or capital markets matter now that the end of days is apparently Monday. (Unless you live in Asia, in which case it?s Sunday). Time for everyone to get their affairs and souls in order.
    Andrew Macpherson

    Expert Z8 Inspections, with full support for both Z8 sale and purchases.

  2. #2
    and finally somebody tells Washington just how complicit is was in the corruption that brought us to the brink....

    Andrew Macpherson

    Expert Z8 Inspections, with full support for both Z8 sale and purchases.

  3. #3
    if you have an hour this is also a great watch.

    http://www.pbs.org/moyers/journal/04162010/watch.html
    Andrew Macpherson

    Expert Z8 Inspections, with full support for both Z8 sale and purchases.

  4. #4
    I am copying this post across from one of the best financial websites because it really is a vital one to read....


    After The President?s ?Wall Street? Speech
    Posted: 22 Apr 2010 09:12 AM PDT
    By Simon Johnson, co-author of 13 Bankers: The Wall Street Takeover And The Next Financial Meltdown

    The president?s rhetoric today at Cooper Union was impressive and his body language indicates a major shift in administration attitudes towards the big banks over the past year. This is commendable.

    But there is still the awkward question of legislation that would actually reduce the political power of big banks ? and make our financial system significantly safer. The latest indications from the Senate are that there will be some sort of ?Dodd minus? compromise bill brought to the floor early next week. The Republicans have substantially backed down from Senator McConnell?s ?hell, no? position of last week because the polling is crystal clear: Anyone perceived as opposed financial reform will lose badly in November.

    But the Democratic leadership is not seizing on this advantage and on the opportunity presented by the SEC case against Goldman Sachs ? key figures in the Democratic establishments are too worried about upsetting financial sector donors. As a result, come November, independents will view the Democrats with scorn, while the Democratic base will be far from energized; you do the math.

    What can you do? What makes sense in both economic and political terms?

    Call your Senator, call Senator Harry Reid (Senate majority leader), and call the White House. Tell them that you support the Brown-Kaufman SAFE banking act (unveiled yesterday) ? as an amendment that would greatly strengthen the Dodd bill by capping the size and leverage of our biggest banks. Politely ask the people who answer the phone to make certain that this amendment gets an ?up or down vote? in the Senate.

    The Brown-Kaufman act is our best near-term chance to reduce the size of Wall Street megabanks that are too big to fail and that threaten our economy. (If you don?t understand why this is important, read 13 Bankers; quickly ? this could all be over by this time next week.)

    Tell everyone you know why this makes sense and ask them to make the call also. These calls will determine the outcome. If the Democratic leadership understands the groundswell of support for breaking up big banks, the Brown-Kaufman proposal has a chance to come to the floor ? and who exactly on the Republican side would like to be on the record as opposing it?

    If no one who reads this post speaks out (and makes the call), the Brown-Kaufman amendment will not come to the floor. If some of you speak out, there is a sliver of a chance. And if all of you ? and everyone you know and everyone they know ? make three simple, short, and friendly phone calls, there will be a vote.
    Andrew Macpherson

    Expert Z8 Inspections, with full support for both Z8 sale and purchases.

  5. #5

    some of the reactions to todays madness...

    BusinessWire:
    NYSE Unveils New Slogan: ?The Market Can Stay Psychotic Longer Than You Can Stay Curled Up In A Fetal Position?

    Vogue:
    Gold Is The New Black!

    Le Figaro:
    European Wheelbarrow Inventories Plummet as Euro Trades at Less Than Cost of Paper It?s Printed On

    CNBC:
    Dow Soars 650 Points Off Intraday Low

    Barrons:
    D-Bag 36000 High-Frequency Trading Program Plans ?Just Following Orders? Defense; Claims Reports of Panic Selling Unfounded ? ?My Algorithms Were Calm and Composed at All Times?

    Cosmopolitan:
    Treasury Bills Officially Replace Diamonds as Girl?s Best Friend

    Athens Daily Idler:
    Greece Burns to the Ground as Protesters Ask, ?What the Hell?s the Point of Having Cake If You Can?t Eat It??

    TMZ:
    IMF Offers to Prop Up Kim Kardashian?s Ass

    New York Times:
    Traders Jump from Windows; Market Rebounds Before They Hit Ground

    Wall Street Journal:
    Flat-Globe Futures Skyrocket After Jean-Claude Trichet Insists World is Round
    Andrew Macpherson

    Expert Z8 Inspections, with full support for both Z8 sale and purchases.

  6. #6
    Z8 Madness
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    Quote Originally Posted by macfly View Post
    BusinessWire:

    TMZ:
    IMF Offers to Prop Up Kim Kardashian?s Ass
    fascinating ... details please ...
    62050 - Z8