Get off Goldman Sach’s Case

Sorry for this rant, but Im sick of everyone in the media concerning themselves with the facts that GS made a ton of money and are going to pay their workers well.  Although it is true that they took bailout money and were basically rescued from bankruptcy… thats old news.  goldman desk

And at the time nobody did anything to stop it… there were no riots across the country… nobody called their congressman and told them to stop the bailout… well maybe some of you did, but definitely not the millions of  disgruntled people and TV personailities that are now bitching about Goldman’s success.  I think that nobody would be bitching if they participated in the Goldman Sachs run of about 199% from its November low.

And yes there is reason to be mad that GS and the like are bigger than the government, but that has been the case for more than a century.   And now all the sudden people are waking up to this fact..?. but are likely going to hit the snooze bar again and do nothing about it.  ……  click full post below to continue

All the conspiracy theories on TV, in the paper, and websites dedicated to such are most likely true, but where does it all get you? Lets talk about relevant information and by relevant I mean makes us money.  After all that is what all of us are market speculators for ..right?  And that feeling that you have … you know the one that you are joining the dark side and contributing to the evil nature of these companies will pass when you have doubled your money, while the conspiracy theorists are still wasting time chasing their tail writing about more conspiracies.

So my question is how long do we have until GS is making new highs breaking out into the $200s  and on past $250 ?  Fundamentally looking at their earnings (chart below) they are already at earnings levels when they were in the $200 range…. so what is the black swan that can reverse this?  I have heard the 2nd half is going to be tougher, with some fluff answers that really wouldn’t reverse the stock to its lows…  The technicals are definitely in an overbought condition.. Anyone have a pulse out there?


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25 Responses to “Get off Goldman Sach’s Case”

  1. Nick,
    Some good points but I still hate them!

  2. $200 – $250 a share again for GS? Thats crazy talk there are a lot of variables out there.

  3. IF Goldman Sucks made money by, say, buying shares of lowpriced stocks in January and sold them at higher prices in June, no problem.
    If they CREATED lower prices in January by selling to JPM who was short the same amount of shares
    then that’s reason enough for me to blow their heads off with a shotgun.

  4. Again we are getting off track here… it is understood that they are shady and always have been. The real question is going forward do they have anything that will knock them off their fast track? Such as the usual mentions… commercial real estate, credit cards defaulting, and the upcoming mortgage resets … we need some numbers

  5. I agree that the populism in the media is a bit disgusting.

    My problem with Goldman is first that they are so flagrant about betting with their reduced risk from government backing. My second problem – which isn’t a problem for a short-term speculator – is that the excessive employee/executive payouts are not in the interest of the shareholders. I understand the importance of keeping quality talent, but doubt that the size of these payouts are necessary for that goal.

    Goldman just smells of short-term profiteering at the expense of long-term shareholder interest to me. I don’t blame anyone for jumping on the band wagon and making some money too, but it is not for me.

    • Value… i totally agree on the payouts.. they are way out there!

    • Goldman sees the highest profits becuase they have the best and the brightest…….In order to keep talent you need to pay them. makes sense to me. We can always move to China and we won’t have to deal with this wild concept of capitalism.

      • And a big WTF?! To you, Isaac!!!

        Best and brightest my gluteus maximus!

        If they had the ‘best and the brightest’, then THEY WOULDN’T HAVE NEEDED A F@RKING BAILOUT IN THE FIRST PLACE NOW, WOULD THEY?!?

        GS has the highest profits because they have THE MOST CONNECTED.

        Go tell your buddies there they might want to put together a ‘go’ bag.

      • Narby,

        Connections have value too. Any way you chop it up the employees at G.S. add signficant value to the firms bottom line. If you want to keep them it requires that you pay them well. It is irrelevant how they make their firm money, what matters is they make more of it then their competition……. As for the bailout…..It has already been repaid…..actually the U.S. government made $400 million dollars on their short term “loan” to G.S. Probably one of the beter investments the government has made in the past year.

  6. Hmm… Make money, make money…

    …Short GS?

  7. The problem that I have with GS is that Paulson forced the bailouts down our throats saying that the world would collapse if they didn’t get the money… but it really was just to get all his old buddies at GS paid. They should have all been thrown on the streets bankrupt if this was a free market system.

  8. Doesn’t the mark to market accounting get back to normal starting the 3rd Quarter? which could make things interesting

  9. I liked your blog up until this post. Either you’re on the take or you’re naive. Either way, your support for GS’ ability to rig the system in their favor is economically negligent at best and immoral at worst. Suggest you rethink your position from historical, logical, and ethical viewpoints.

    • I appreciate your point of view Tony… its too bad that your first post has to be a negative one towards me.

      Im not sure what “on the take” means but I don’t mention any support of GS’s ability to rig the system. And if we go down the path of “ethical” what company is worthy of your standards out there? Someone could find some kind of ethical fault with 499 companies out of the S&P 500 in how they do business. GS just happens to be the soup de jour… but next year it will be some oil spill, or some lab rat testing, or maybe some exploitation of immigrants… etc

      Im here to make money… And thats what this blog is about… hopefully you’ll find a way still like it.. because Im not here to make enemies either.

      • Hi Nicholas,

        I think the biggest objection that people have is that Goldman Sachs is trading and taking money out of the markets… AND paying big bonuses.

        This would normally be fine, except they wouldn’t be in business AT ALL, unless we the taxpayers had given them a shitload of money to save them from their own incompetence.

        Hedge funds (which is what GS effectively is at this point) are not essential to the system.

        GS should be liquidated and/or nationalized and the proceeds returned to the taxpayer.

      • It was not the best course of action for me to make an attack like that and I apologize. You’ve handled it very well…

        GS is very dangerous to our country – the access and power has gone on for years as you’ve stated and that is not unusual as a number of influential companies also play a role in government. But what is unusual is the total disregard for America. It’s on full display for all to see without any hesitation from GS – that’s a change in direction and dangerous for our country. Yes, we can make money with them, by trading GS stock, oil, or even carbon credits one day knowing that they’ve rigged the system. But their actions are not good for America on a major scale and their success has become our detriment and thus the ethical issues. I can think of a number of ways to make money that do not have this baggage (NTES, GMCR, NFLX, etc.). Ethics is not something that I normally think about when trading a stock, but in this case it was inescapable for me.

        So GS has become an Us vs. Them issue and will likely take on more steam in the coming months – especially if we have another leg down or the Fed is audited. Personally, I would like to see the GS “leaders” tried for treason.

        At any rate, I do appreciate your site and your professionalism.

  10. Goldman is shady, but from a money making perspective, they will establish new highs within the next 52 weeks. They are the best at what they do, which is manipulate markets and benefit by trading the move. All the banks do it, they just have more connections and talent. Lending is on the rocks, earnings have showed that commercial real estate is really starting to get killed, and unemployment is at an equivalent of 17% in real terms. Doesn’t really matter when the government is lending to these scumbags at 0% and the banks are turning it around at 5% mortgage and 15% credit card. I don’t like it, but financials are the buy of a century, even at these levels.

    Bottom line, the banks run the world and the United States will make sure their creditors are happy. They will continue the ponzi scheme known as the United States economy, which will turn the markets higher until the real crash comes when Medicare and Social Security officially bankrupt our system.

  11. Its funny how this has come around full circle now with Goldman in the hot seat with congress.

    Im curious if everyone still has the same feelings about Goldman Sachs?

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