Goldman Sachs: Wall St. May Face $460B In Losses

Goldman Sachs: Wall St. May Face $460B In Losses

Bloomberg   |  Zhao Yidi   |   March 25, 2008 08:41 PM

Read More: Bear Stearns Collapse, Goldman Sachs, Market Collapse, US Economy, Wall Street, Breaking Business News
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Wall Street banks, brokerages and hedge funds may report $460 billion in credit losses from the collapse of the subprime mortgage market, or almost four times the amount already disclosed, according to Goldman Sachs Group Inc. Profits will continue to wane, other analysts said.

There is light at the end of the tunnel, but it is still rather dim,'' Goldman analysts including New York-based Andrew Tilton said in a note to investors today. They estimated that residential mortgage losses will account for half the total, and commercial mortgages as much as 20 percent.


 
 

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- mrcontinental See Profile I'm a Fan of mrcontinental

This is old news...get on with it already.

    Favorite    Flag as abusive Posted 10:39 AM on 03/26/2008
- ZingoBonMot See Profile I'm a Fan of ZingoBonMot

That it is. But the good news is the American taxpayer is only on the hook for $459 billion of it.

    Favorite    Flag as abusive Posted 10:57 AM on 03/26/2008
- javaman See Profile I'm a Fan of javaman

That light at the end of the tunnel is the street lamp over the bread line.

    Favorite    Flag as abusive Posted 10:24 AM on 03/26/2008
- geobushono See Profile I'm a Fan of geobushono

When the Courts start charging treason for these crime and sending people to jail for 40 and 50 years, we'll bring good judgement back to Wall Street.......They won't like it, but the vile elements that direct this ponzi scheme will want to see their kids every night......that'll do it.

    Favorite    Flag as abusive Posted 09:37 AM on 03/26/2008
- pennyfortheguy See Profile I'm a Fan of pennyfortheguy

So, at or around 12,000 where the hallowed Dow is now, would a further devaluation of 30% be out order? Any takers on that one?

    Favorite    Flag as abusive Posted 08:45 AM on 03/26/2008
- drkazmd65 See Profile I'm a Fan of drkazmd65

Not at all - I have been wrong (slightly) twice so far in my predictions that the market would be 11K (or less) twice this winter - but that was before the Fed and our Government bailed the assholes out twice.

It wouldn't surprise me at all to see the Dow hit >10K before the end of the year and that would be about 20% drop over current. So is 30% at all far-fetched?

    Favorite    Flag as abusive Posted 10:03 AM on 03/26/2008
- pennyfortheguy See Profile I'm a Fan of pennyfortheguy

Was thinking along lines similar to yours. A great resettlement with the 'bread and circuses' sideshow. Marvelous.

    Favorite    Flag as abusive Posted 02:03 PM on 03/26/2008
- ibsteve2u See Profile I'm a Fan of ibsteve2u

And what does that $460 billion in losses mean to me and you?

Why, it means that the Wall Street presence in this Administration will shortly start crying doom and gloom over Social Security and Medicare so they can get legislation enacted to force America's average Janes and Joes to put a significant chunk of their earnings into the Street's rapacious hands.

Oh, wait...I guess they did that Tuesday!

    Favorite    Flag as abusive Posted 07:22 AM on 03/26/2008
- VivaZapata See Profile I'm a Fan of VivaZapata

the oncoming consumer goods costs due to inflation is just another way of nullifying social security. i doubt that it was intentional, but it's working out that way.

    Favorite    Flag as abusive Posted 08:22 AM on 03/26/2008
- WIpatriot See Profile I'm a Fan of WIpatriot

Say "opportunists," 'Zapata.

    Favorite    Flag as abusive Posted 09:52 AM on 03/26/2008
- realitytrumpsbull See Profile I'm a Fan of realitytrumpsbull

Those guys dug their own flippin' hole, as far as I'm concerned...shut THAT little roulette table DOWN...then flip it over and find out where that brake cable goes...hehehehe...

Bert08

    Favorite    Flag as abusive Posted 03:25 AM on 03/26/2008
- tililek See Profile I'm a Fan of tililek

Since I'm only a poor tax-payer, am I expected to help people who've been over paid for rotten judgment?

    Favorite    Flag as abusive Posted 01:38 AM on 03/26/2008
- WIpatriot See Profile I'm a Fan of WIpatriot

You are correct.

    Favorite    Flag as abusive Posted 07:13 AM on 03/26/2008
- VivaZapata See Profile I'm a Fan of VivaZapata

BUY GOLD AND COMMODITIES.

don't listen to the loudmouths and tipsters. they have no rudders and there's nothing but icebergs ahead.

    Favorite    Flag as abusive Posted 12:59 AM on 03/26/2008
- WIpatriot See Profile I'm a Fan of WIpatriot

I do.

    Favorite    Flag as abusive Posted 07:13 AM on 03/26/2008
- MetalCanuck See Profile I'm a Fan of MetalCanuck

Gold and silver folks..get buying:) You may have no jobs and gold will cost a fortune from the mass inflation. They are inflating like crazy and getting out as fast as possible.

    Favorite    Flag as abusive Posted 10:46 PM on 03/25/2008
- WIpatriot See Profile I'm a Fan of WIpatriot

I do.

    Favorite    Flag as abusive Posted 07:13 AM on 03/26/2008
- civilbehavior See Profile I'm a Fan of civilbehavior



The wheels are coming off

The wheels are coming off

The......wheels.........are.............................................

    Favorite    Flag as abusive Posted 10:14 PM on 03/25/2008
- WIpatriot See Profile I'm a Fan of WIpatriot

Ever notice that the bearings start squealing and smoking, and the tires start to wobble before the wheels come off?

Wobba, wobba, wobba....

    Favorite    Flag as abusive Posted 09:54 AM on 03/26/2008
- NicoleAnonymous See Profile I'm a Fan of NicoleAnonymous

Don't worry - we will rescue them by "loaning" them more money!

Henry "I work for Jamie Demon" Paulson

    Favorite    Flag as abusive Posted 10:03 PM on 03/25/2008
- Sundialsvc4 See Profile I'm a Fan of Sundialsvc4

I have never felt that this was "a 'subprime' issue." It's perfectly obvious, at least to anyone outside of "the Street," that crowd-psychology has trumped common-sense for quite a long time. (And let's face it, the business of Wall Street does have a whole lot to do with that dichotomy. That's how those folks have always afforded $5,000 leather shoes.) The actual losses are going to be in the trillions, and the true reason for those "losses" is actually that "those dollars never existed in the first place." Now, if we look long enough and wait long enough, eventually a connection to the Federal Government's "magical money machine" IS going to show up...

    Favorite    Flag as abusive Posted 09:16 PM on 03/25/2008
- WIpatriot See Profile I'm a Fan of WIpatriot

This is a perfect time for the crooks on Wall Street to over-state their asset devaluations.

Later, they will re-correct their valuations and voila! instant profits!

Watch.

    Favorite    Flag as abusive Posted 07:16 AM on 03/26/2008
- nanotubz See Profile I'm a Fan of nanotubz

You're right. Too much money is available and too few people that are actually capable of handling those sums. The USA economy is 90% hype and 10% incompetence.

    Favorite    Flag as abusive Posted 10:58 PM on 03/25/2008
- FreedomCorpse See Profile I'm a Fan of FreedomCorpse

multiply by 10 or 20 and the number might be close.

    Favorite    Flag as abusive Posted 09:08 PM on 03/25/2008
- ErnestineBass See Profile I'm a Fan of ErnestineBass

"Gee, Wally, does that mean the American taxpayer's are only $459 Billion in Dutch?
For a mintue there I was a'skeered..."

    Favorite    Flag as abusive Posted 09:14 PM on 03/25/2008
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