Saturday 17 April 2010

Goldman Stock - Hit By A Rock

For the first time since crony capitalism did a great rock and roll swindle on main street culminating in 2008's stand and deliver in the Whitehouse, it seems some judicial teeth are being bared. 

Frankly I didn't think the home of capitalism pie had the stones for it, but this story isn't going away any time soon. Goldman's stock looked like someone dropped a rock on it yesterday as shown above. It looks like they stitched up a young and cocky French patsy (The fabulous Fab) who appears, despite his gleaming education to have been in over his head.

As we've all learned since the word subprime entered the vernacular, a bucket of nuclear waste debt was extended to another financial firm by Goldman to distance them from the act of actually picking  the radioactive synthetic CDOs which they then shorted while ostensibly recommending long to their clients.

At worst their reputation just took a serious blow but the obvious head on the platter is their big Kahuna Lloyd Blankfein who conveyed that Goldman through capitalism were doing God's work. Even thought it's not exactly a footnote in Matthew 20:12 that Jesus lost the plot only once when casting the money changers OUT of the temple.

It's a helluva story.