Joke Of The Day. It's On You.
The SEC's Edgar database has just been updated with an interesting bit of data. Take a gander at the bottom of page 66. "Level 3 assets for which we have exposure". Level 3 Assets have risen by over 50% in three months. So, let me see if I can get my mind around this very complicated point. Shareholder equity is dropping and level three assets are rising? Oh, now that's an investment I'm excited about! Many clowns, including Bozo himself, were recently telling us this is the opportunity of a lifetime to buy financial stocks. I believe those were the exact words. Well, at least Bozo did make me laugh. Party is just starting folks and you get a front row seat.
Update:
Bloomberg put a story up at 10:30AM on the Goldman Sachs 10-Q I highlighted early this morning in the original post. A company spokesman is quoted as saying, "Just because an asset is defined as Level 3 doesn't mean we're uncomfortable with the value of the asset..........It also doesn't provide any insight into the relative risk of the underlying asset.''
Indeed that is true. Technically. The problem isn't that they hold level 3 assets per se. The problem is that they hold level three assets that are associated with the biggest financial mania since 1929. With the biggest global asset boom in history. All while we have the largest structural risks to the economy in decades if not longer. And, they hold them just as we are entering a period of economic weakness. And, that they are now valued at over 2x shareholder's equity. So, technically, the Goldman statement is accurate. But then again, technically in the long run we are all dead.
Update:
Bloomberg put a story up at 10:30AM on the Goldman Sachs 10-Q I highlighted early this morning in the original post. A company spokesman is quoted as saying, "Just because an asset is defined as Level 3 doesn't mean we're uncomfortable with the value of the asset..........It also doesn't provide any insight into the relative risk of the underlying asset.''
Indeed that is true. Technically. The problem isn't that they hold level 3 assets per se. The problem is that they hold level three assets that are associated with the biggest financial mania since 1929. With the biggest global asset boom in history. All while we have the largest structural risks to the economy in decades if not longer. And, they hold them just as we are entering a period of economic weakness. And, that they are now valued at over 2x shareholder's equity. So, technically, the Goldman statement is accurate. But then again, technically in the long run we are all dead.
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