Monday, April 13, 2009

Goldman's earnings

FICC (Fixed Income and Commodities) had $6.5 billion of net revenue, so Goldman thanks you, the taxpayer, for your help courtesy of AIG.

And with your help, they were able to reduce their Level 3 exposure to $59 billion from $66 billion.

Now with Wall Street's help, they'll raise another $5.5 billion, and then, next quarter, they'll be able to piece out more of their dreck out, while they get handouts with their low cost of funding, and rapidly improving financial markets.

And then, Goldman may actually start getting bullish. They may even then make money on Principal Investments; after all, they only lost $1.41 billion in Principal Investments for the quarter!

And that's the program that the banks will follow. Get money from the taxpayer, raise money, and be subsidized until they can stand on their own two feet, but never let the public know the true state of your affairs, until business gets materially better.

And Goldman, shows how the short bet becomes broken. With a vengenance.

And that's the market script.

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