PDA

View Full Version : The End is Nigh: How Goldman Sachs Triggered the Apocalypse



MNeagle
17th April 2010, 04:23 PM
Submitted by Benjamin N. Dover III on 04/17/2010 17:22 -0500

Goldman Sachs


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 “Slick John” -- 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 Slick John 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 have shorted the security. 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.

Link to original story (http://www.zerohedge.com/article/end-nigh-how-goldman-sachs-triggered-apocalypse?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+zerohedge%2Ffeed+%28zero+hedg e+-+on+a+long+enough+timeline%2C+the+survival+rate+fo r+everyone+drops+to+zero%29)


EDIT: Changed long link to named link, to keep forum from scrolling 3 pages to the right. -Gaillo

Libertarian_Guard
17th April 2010, 04:44 PM
I sure no one know better, when we're about to take the sausage, then a guy called Ben Dover!

The man must have it in his blood - - third generation.

Ponce
17th April 2010, 05:34 PM
This will create the domino affect where more of them will follow.

Horn
17th April 2010, 08:06 PM
http://www.youtube.com/watch?v=7ipXCs0dlkY

peachesinfla
17th April 2010, 08:08 PM
I sure no one know better, when we're about to take the sausage, then a guy called Ben Dover!

The man must have it in his blood - - third generation.



He must have it somewhere. Not sure it is in his blood though. 8)

General of Darkness
17th April 2010, 08:34 PM
http://www.youtube.com/watch?v=7ipXCs0dlkY



At the end the guy said, "Goldman Sachs is probably just trying to make an honest buck on wall street". Did someone come behind a curtain and point a gun at him?

CJay8
17th April 2010, 08:47 PM
At the end the guy said, "Goldman Sachs is probably just trying to make an honest buck on wall street". Did someone come behind a curtain and point a gun at him?
[/quote]

kiss my ass and call me jesus, that's the funniest sh*t I"ve heard all year

KumbayaMan
18th April 2010, 10:30 AM
Think they're takin' down GS deliberately to divert attention from the recent (unreported) :-X GATA bonbshells????
I mean, if everything goes to hell for GS this would be a great way for TPDB to keep eyes off the paper ponzi in Gold / Silver...

Any thoughts?

Horn
18th April 2010, 10:46 AM
Think they're takin' down GS deliberately to divert attention from the recent (unreported) :-X GATA bonbshells????
I mean, if everything goes to hell for GS this would be a great way for TPDB to keep eyes off the paper ponzi in Gold / Silver...

Any thoughts?



Makes sense to me, no story is too big to fail, when put up against a larger one.

That GATA story hardly made it past the opening curtain.

kregener
18th April 2010, 10:52 AM
Goldman-Sachs and its billions are just a drop in the bucket of the Great Ponzi Scheme that is suppressing TRILLIONS in mal-investment.

Pat Pat
18th April 2010, 11:05 AM
when you read arthur koesler "the thirteenth tribe"

it is a rather dry book.

but the one thing that becomes clear, the end for the khazars always comes when the king and the khazars start fighting

the king today is the govt.

if this is a real investigation, and it ends badly, maybe some pressure is really being applied to the khazars.

when this happens (time and time again in the book), the khazars always flee the country/city, and the money is worthless, and the treasury is empty.

Koesler goes through it time and time again

same old song and dance

hundreds of years

I am not saying this is happening now, but goldman sachs is the sacred rothschild bank.

I have a hard time seeing them sacrifice it.....

Ponce
18th April 2010, 11:43 AM
Don't worry folks........a terrorist attack will take our minds away from all this problems.

If your right hand hurts then hit your left hand harder and you will forget all about your right hand.

KumbayaMan
18th April 2010, 04:29 PM
Don't worry folks........a terrorist attack will take our minds away from all this problems.

If your right hand hurts then hit your left hand harder and you will forget all about your right hand.


BINGO Ponce...... ::)

Libertarian_Guard
18th April 2010, 04:41 PM
Don't worry folks........a terrorist attack will take our minds away from all this problems.

If your right hand hurts then hit your left hand harder and you will forget all about your right hand.


BINGO Ponce...... ::)


Or we continue seeing 'wack a mole' being played out.