Goldman Sachs' Stock Continues Its Implosion

We have highlighted Goldman Sachs on here quite a few times. Amongst other posts, at its equity price peak we wrote that Goldman's perceived brilliance has been a perfect harbinger of doom from a historical perspective. And, when everyone was telling us Goldman had missed the crisis because they had bet against subprime, we said not so fast. That their time of trouble would come. We also said Goldman Sachs stock was the perfect diversified investment for this cycle because they were a leader in every booming business - mergers, hedge funds, hedge fund services, proprietary trading, commodities, investments in emerging markets, private equity, investment banking and whatnot. Come to find out Goldman Sachs appears to have been a leader in every single unsustainable strategy imaginable. How brilliant is that? I think it's becoming quite obvious Goldman would not be in business were it not for the Federal Reserve and Warren Buffett. That said, I do hope the institution survives. I would just like Goldman executives including Hank Paulson to give back all of their bonuses over the last ten years in exchange for their bailout.

On a go forward basis, society might want to remember one particular point. When the most hyped segment of the economy is banking, when banking is drawing in all of the MBAs and talent from the economy, when bankers are highlighted for their brilliance on the cover of business magazines, when bankers are at the top of the wealthiest persons lists, when the Treasury Secretary speaks publicly about the crown jewels of our economy being Wall Street, and when Wall Street pinheads publicly proclaim we should outsource all of our industry to China and we will be the world's banksters, it's time to run for the hills.

When the dull, rote business of banking and finance is transformed into the most exciting profession in the economy, the banksters are doing very, very, very bad things with our money. And, they have only done so with the complicity of the state.