Goldman Sachs Profits Implode Led By Equity Trading Profits Disaster
This news is very consistent with the conclusions of our last post. ie, As counterparties are pared from the market, a relatively small number of monopolistic financial firms end up substantially trading against themselves using the same basic algorithms. Whether this is what is impacting Goldman at this very moment remains to be seen but we should expect to see trading conditions and profits continue to deteriorate substantially across enormous hedge funds and banks due to this dynamic unless we see a change in fundamentals. (ie, Wall Street is now the herd or dumb money when considering sentiment.)
All throughout last year when everyone had said Wall Street had won, we were literally the only voice this side of the planet Jupiter who continued to write numerous times that Goldman Sachs was in serious trouble and without a major transformation of their business model, they could actually fail at some point. Goldman's business model is a poster child for everything that is wrong with our economy. That's really no surprise since our economy has been shaped over the decades by the legalized bribery of our federal government; primarily by Wall Street treasonists, mobsters, crooks, dunces and thugs.
While Goldman is still profitable and could obviously weather substantial quarterly losses for some time in a normal economic environment, remember we said well before the 2008 collapse that markets would move well too fast for people to respond. That call was and will remain accurate. Bear Stearns, Merrill Lynch and Lehman were minting record profits from Frankenstein finance until they weren't. And that change happened literally within days. Wall Street is still in serious trouble on a multitude of fronts; Frankenstein finance being one of them. Whatever happens, eventually the "market" that Wall Street worships yet will do anything not to compete in, will take care of what morally-ambiguous politicians won't.
What do you do if you are Goldman Sachs and all of the markets your lobbying efforts have rigged aren't providing you the wealth transfer you used to get? Well, of course, you fire up the lobbying engine again to rig new markets and new schemes. And that is exactly what is happening.
By the way, lobbying spending across the board is now being highly under-reported now that lobbyists and firms seeking favor from the court of the imperial government of the United States are aware that their efforts are under increasing public scrutiny. Many corporations and lobbyist firms are employing new schemes to keep their lobbying efforts out of the public eye. The Sunlight Foundation has highlighted some of these new rigged schemes and shell games over the past few years. So now just like all of the other dirty deals and smarmy secrets in Washington, we really have no idea how much is being spent to whore out our people's government to socialist corporations, foreign entities and special interests living off the backs of unemployed Americans.
It's good to be the king. Not much longer though.
All throughout last year when everyone had said Wall Street had won, we were literally the only voice this side of the planet Jupiter who continued to write numerous times that Goldman Sachs was in serious trouble and without a major transformation of their business model, they could actually fail at some point. Goldman's business model is a poster child for everything that is wrong with our economy. That's really no surprise since our economy has been shaped over the decades by the legalized bribery of our federal government; primarily by Wall Street treasonists, mobsters, crooks, dunces and thugs.
While Goldman is still profitable and could obviously weather substantial quarterly losses for some time in a normal economic environment, remember we said well before the 2008 collapse that markets would move well too fast for people to respond. That call was and will remain accurate. Bear Stearns, Merrill Lynch and Lehman were minting record profits from Frankenstein finance until they weren't. And that change happened literally within days. Wall Street is still in serious trouble on a multitude of fronts; Frankenstein finance being one of them. Whatever happens, eventually the "market" that Wall Street worships yet will do anything not to compete in, will take care of what morally-ambiguous politicians won't.
What do you do if you are Goldman Sachs and all of the markets your lobbying efforts have rigged aren't providing you the wealth transfer you used to get? Well, of course, you fire up the lobbying engine again to rig new markets and new schemes. And that is exactly what is happening.
By the way, lobbying spending across the board is now being highly under-reported now that lobbyists and firms seeking favor from the court of the imperial government of the United States are aware that their efforts are under increasing public scrutiny. Many corporations and lobbyist firms are employing new schemes to keep their lobbying efforts out of the public eye. The Sunlight Foundation has highlighted some of these new rigged schemes and shell games over the past few years. So now just like all of the other dirty deals and smarmy secrets in Washington, we really have no idea how much is being spent to whore out our people's government to socialist corporations, foreign entities and special interests living off the backs of unemployed Americans.
It's good to be the king. Not much longer though.
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