http://rickrev.blogspot.com/2007/12/goldman-sachs-selling-their-own-market.html Disturbing. But what will be done about it? Or is the tax payer happy to be bled dry for these corporations?
Serious!? I was still scratching my head over how Goldman Sachs manage to avoid the crisis that affects everyone else.
That CEO got a big fat holiday bonus. Good thing we could help him with our tax money. It would have been a tragedy if the CEO's salary was cut to only $50 million-ish a year. source
If you can google and find this info on the net, I'm sure the government can as well. They still choose to bail this company out. Personally, I think it is disgusting. This CEO is living lifestyles of the rich and famous while ordinary citizens are paying for it. But this is the governments decision and we must abide. We will all become one with the borg. Resistance is futile.
It's never hopeless. Edmund Burke I'm not going so far as to say I am a good man, but I will not do nothing.
You really shouldn’t quote people who have no understand of the financial markets. Goldman Sachs doesn’t make the market it participates in it like everyone else. The profits came from their proprietary desk, traders at Goldman Sachs took company money and shorted (Bet it would fall) the sub prime mortgage sector basically from almost the being of the year. They were correct and they made massive amounts of money. They also sold (some at a loss) all of their CDO exposed to the housing market in the 3rd Quarter. Which is why they didn’t have to write down any loses like other banks have done. Short selling doesn’t make a market collapse, a lack of buying interest does. Also just because a company can’t sell a bond doesn’t mean a company can’t make profits in a falling market. Smart investors and company make profits in all types of markets.
Because they had no exposure to the sub prime market. in fact they shorted the abx index which tracks the sub prime mortgage market.
He runs a company that just made $11.6 Billion dollars in profits up 26% from last year and he was rewarded for it.
But I quote you all of the time. You're missing the point completely. They help make the market, they are a leader in securitized bundles, and then they bet essentially against their own product. Which might not be such a huge deal, if the FED wasn't going to use taxpayer money and a manipulation of the interest rate to protect the very industry they built, destroyed and profited by. They basically ripped off anyone buying their securitized credit bundles, but made sure they profited by it when the product failed. You see, they knew how bad their own product was. They knew it was crap, hence why they shorted it.
You're kidding, right? I'm not going to abide by this, and anyone who else wants to be free won't. I don't plan on becoming one with the borg anytime soon. ROFL!!!!!!!!!!!! I see what you're saying. I'm not an expert on mortgage securities or derivatives, but what you are saying makes perfect sense. These pieces of trash played an important role in blowing up the bubble, and because they are insiders, they started betting that the market would go down before it was well publicized, and they actually help accelerate the fall of the market due to their influence over it. Then the Fed turns around and bails them out at the expense of the rest of us. So essentially, anyone who wasn't an insider, who had their money invested with Goldman Sachs, basically lose their shirts, and then the American people are losing their shirts because the Fed is putting in funds to try to save the market, and the only people who have benefited is Goldman Sachs. Yeah, the financial system in the U.S. is all smoke and mirrors. And when you have a public where 1/5 can't find the U.S. on a map, it becomes easy to see why there are many people who don't see much hope for America's future, especially if Ron Paul doesn't win the election.
Well, to use another example. I buy some Clementines, and I know they are starting to go bad. But I sell them to soniqhost anyway, for a nice profit, then I take out insurance for when he gets sick from eating them, and make another profit. Is it very smart business? You bet. Is it insider trading? Absolutely. Did Goldman Sachs give Hillary all of that money for her campaign because they don't expect some consideration in return? You decide, 2008!
Why blame Goldman Sachs for being smart? Even if they had not shorted, the mortgage market would have been in the same mess. ====================================================== The mortgage-backed securities are like shares of a company. Someone shorting shares of a company does not make the company collapse. The company collapses when it can't manage its business. Goldman Sachs was a broker. It found the securities overvalued and shorted them...... just like any stock broker would do in an overvalued stock market. The government is trying to benefit the home owners. The government's aim is to make sure they don't lose their homes. All financial institutions knew very well the risks of buying mortgage backed securities, and yet they bought. The high yields of these securities made them greedy and now they are paying the price for it. Here is a nice list of write-offs due to the mortgage crisis...
As a former daytrader and stock market investor(who made alot then lost it all), i know the power that comes from being a market maker. They have the information on buys and sells on both sides of the plate and know which side to lean on to save their butts. There is very little oversite into market maker actions . they are armed with the info neccessary to keep coming out on top no matter what happens . I believe it takes a series 47 license(if my memory serves me correctly) to work as a market maker for one of the big ones but you almopst always start out on the bottom. Sachin , ever heard of naked shorting??? Its where a market maker can keep shorting stocks he doesnt own (as much as he wants) to keep the price of a stock depressed. Now i dont know if this can be done with listed shares(maybe ,maybe not) but it sure can be done with otcbb and pink sheeters.
This is why I don't fool around with the stock market, unless you're an insider, you'll never make the real money, and you will always be at risk of losing everything. Did you see that video on YouTube with Jim Cramer? He basically showed that the entire stock market is largely a scam. I often think of the stock market as being a type of casino. I just read today that Hillary gets the most corporate donations of any candidate running in the 2008 election, and this includes both parties, Democrat and Republican. Anyone who votes for her thinking she is going to change things for the better is a fool. I mean, she has Rupert Murdoch backing her, it doesn't get anymore obvious than this. That is pretty sophisticated. I try to keep things simple by not playing in a battle where companies like Goldman Sachs, or Wall Street makes the rules. I always like to think that it is a recipe for disaster.
Super Rich Corporates always manage to report profits despite all odds as they have the influence and reach to manupilate things and come clean on them......and regulators try to defend their sinful acts....always
A lot of base CEO pay is based off the average of what other CEO's of same sized firms are getting, and then they get paid just above the average, this is why CEO salaries have been steadily climbing further into the cosmos every year.
Boy, isn't someone a genius. In a volatile economic situation such as this one, any slight move from a penny-stock trader would make the rest of the market piss in their pants. To illustrate, I'll give you an example. If you read a news report that your bank was about to fail, what would you do? Probably go to the bank and demand your money back. The vast majority of people who heard about this would demand their money back. The probem is that the bank gave out your money on loans and doesn't have it on hand. Eventually, under the pressure from depositors, the bank falls and has to be rescued by an outside investor or the FDIC. If a firm as cautious as Goldman Sachs starts to bet against the economy, not too many people will bet for it. And thus, the credit crunch and associated conditions. Any 3rd grader who's studied the Great Depression can spout your economic theories. The fact is that the markets are influenced by way too many factors to include in a post. I can't claim any knowledge of the markets, but neither can most other people here.