'Goldie Mac': WSJ's Goldman Sachs Barb

wsj.com:

Yesterday saw one TARP recipient, Goldman Sachs, report $3.44 billion in profits even as another, CIT, teeters on the edge of either bankruptcy or another taxpayer bailout. Which way CIT will tip remained unclear as we went to press, but its very plight shows how the government's approach to systemic risk has created groups of financial "haves" and "have nots."

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Read the whole story: wsj.com

Comments

[Chazmania]

When will Americans finely have had enough of being robbed to do anything?

[PhilipTaylor]

Anyone can show a Mammoth Profit if you FAKE IT Using Legalized Illegal Accounting!
Even ENRON did it!

So is $3.44 Billion larger than $47.7 Trillion? NO! Well Then they are Bankrupt!

Without "MARK-TO-MARKET" they exaggerate the Value of the Derivatives "On the Balance-Sheet" while G0LDMAN has increased their Toxic Debts from around $30 Trillion to almost $48 Trillion all conveniently hidden OFF-BALANCE-SHEET!

So the accounting is totally FAKE and I do not understand why analysts ignore the MAMMOTH IN THE ROOM - unless they are paid to!

A Federal Agency in our Government, the 0ffice of the Comptroller of the Currency, 0CC, issues a quarterly Report that has the following info:

1 JPM0RGAN C $81 TRILLION in Toxic Derivatives
2 B 0F AM $78 TRILLION
3 G0LDMAN SA $48 TRILLION
4 M0RGAN STA $39 TRILLION
5 C1T1GROUP $32 TRILLION

http://www.occ.gov/ftp/release/2009-72a.pdf
It is on page 23!

CITIGROUP wants MORE TARP!

Glass-Steigel them!

Divide them up and get rid of the JUNK at the expense of the Stakeholders!

Bye Bye TOO-BIG-TO-FAIL!

Citi has $32 TRILLION of Toxic Derivatives Hidden "Off-BALAN­CE-SHEET!" Why save them or any of these WS MAMMOTHS who have OUT-LIVED their TIME! Only We11s has a tolerable amount of such DEBT and it is OUTRAGEOUS at $5 TRILLION!

When did it sound like a good idea to have "OFF-BALANCE-SHEET" accounting? Wasn't it ENR0N?

[PhilipTaylor]

For example if your Quarterly profit was say $3.5 Billion and your Toxic Derivatives are $48 Trillion then that profit is

0.007292% (3.5/48,00­0) of your potential debt which can never pull you out of the whole.

In other words Zombie Bank! Krugman and Stiglitz have always been right and still are!

[tokenconservative]

All of a sudden we're flocking the Wall Street Journal editorial page I see.

[BurtonOerney]

Anything to reinforce my opinion. The progressive is the most gullible of political animals. Democrats will keep hearing about the TARP 'scandal' (it is not a scandal. The only quibble some economists have with it is they'd rather have the 'bad bank' model, which still involves tax payers buying toxic assets only without any real prospect of public investment) and how Obama is 'in the pocket of the banks' until we lose the majority in congress and split our vote between Ron Paul and Ralph Nader in 2012. Then the next republican administration can point to all the progress made from Obama/Geit­hner/Berna­nke's 18-month stimulus and credit it to sensible republican legislators.

Had we not bolted on Carter when we did, we probably wouldn't be just starting with electric cars and domestic energy production. We might not have a crisis at all right now. Look into his economic and energy policies. Why did we allow ourselves to be convinced they'd end in catastrophe?

[Chazmania]

Carter was the one honest person in Washington and so now there are no honest people there. Just the new mafia!

[Rule Of Law]

"AIG was no longer legally obligated to pay off its debts -- like those to Goldman Sachs (that's what bankruptcy is all about after all). Yet the Obama administration and Congress authorized AIG to use taxpayer money to pay off those debts in full. If taxpayer money hadn't been made into Wall Street's golden egg, Goldman Sachs' golden goose would have been cooked; they would have received pennies on the dollar."

[research]

We did NOT have to rescue the banks.

Had we put all that money into main street, say rooftop solar,

It would all have ended up in the Real Banks anyway.

Where do you thing people put their money.

Instead we have given 93 % of the worlds wealth to the very Bankers who crashed the system.

We all work for them now.

[BurtonOerney]

Rooftop solar would have limited my 401K losses to 20% in a sharper, larger downturn than the 1929 crash?

[research]

Actually, rooftop solar as an investment would have had an ROI of at least 200% over 30 years.

[jozzie]

"government's approach to systemic risk has created groups of financial "haves" and "have nots."

"Banks that want to be successful will also want to be more like Goldman Sachs, creating an incentive for both larger size and more risk-taking on the taxpayer's dime."

'Nuff said.

[mjtaylor22]

they used their boys in govt to eliminate the competition

[Chazmania]

This statement above is spot on!