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Thursday, August 6, 2009

The Goldman coup

Goldman's successful market manipulation is as obvious as it gets through the profits they make. Bernanke and Dudley do supports this matters which is by any monopoly rules a violation has nothing to do with free markets. Goldman gets a lot of undeserved perks as gets JP Morgan on behalf of taxpayers - almost more than any other single program in the stimulus package. Cash for clunkers looks ridiculous when you see how much under priced the warrants of Goldman were they bought back. The charade is unbelievable thinking about 2 bil for such a program and throwing tens of billions of taxpayer money at Goldman and others each ( AIG was just around 20 bil for Goldman) plus the government sponsored profits of this rally. Goldman got a risk free huge bet financed by the FED and with special allowance for risk (VAR). This Obama admin exceeds the BUSH boys even as the Bush guys were making free money for Oil and Banks. At the end it comes down to the same thing as both are dominated by the Rothschild / Rockedeller gang who make the governments and run them.

Excerpt

Goldman's 42 $100MM+ Trading Days In Q2 - An Absolute, Unprecedented Record; Just Two Days Of Trading Losses




Goldman reported their $100MM+ trading days. It is a stunner: Goldman made over $100 million on 46 out of the 65 total trading days in Q2, 70% of total. Goldman made over $50 million on 58 of the 65 total trading days in Q2, 89.2% of total.

As a reminder, here is what GS' trading days looked like in Q1.

Wow. But surely this phenomenal improvement in daily P&L generation came as a result of the firm taking on more risk? Why, no Virginia- Goldman's VaR at the end of Q2 was lower than the end of Q1.

So let's see - progressivelly higher daily revenues on progressively lower "indicated" risk-taking. It is so painfully obvious that the traders at Goldman still have not figured out how to game the system.

Oh, and the 12 $100MM (at least) trading days jump in Q2 vs Q1, why that's exactly the cost to Goldman to pay down its TARP warrants. Goldman is so lucky - the company can just print money while trading and pay off its liabilties. One wonders if Ben Bernanke is at least a little concerned that GS has its own $ printing press courtesy of the fine folks at the SEC.

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