Wednesday, July 15, 2009

No sop for you!

What's with the fawning over Goldman Sachs quarter? $18 billion from AIG. Add it up. Throw in another subsidy on the bonds they underwrote with FDIC backing, and now the sop thrown Goldman's way is $20 billion!

There's sop for you!

Now Goldman can pay out, this year, $22 billion in compensation, and all it has to do to get the most favored nation status is throw $30 million at lawmakers, and fly two flags outside corporate headquarters, and get everyone else in Government to buy their stock!

Their level III assets are still at $54 billion, but now we have Cramer pontificating about Goldman's excess liquidity, when Goldman's excess liquidity, is just their client's money! Why else does Goldman pretend it's theirs? After all, isn't it Government Sachs?

Didn't Goldman's assets in their managed money go down 43%, and supposedly it wasn't because of withdrawals. But that, then, wasn't Goldman's money, it was their clients! And how could Goldman suffer from "performance anxiety" when you have a sugar daddy called Uncle Sam? And then pimp yourself off as geniuses, because you, the taxpayer, had Goldman's back. And while yours was turned, they screwed you. Is it any wonder why the folks from Goldman, crave the GFE, when they hire out, unlike Spitzer, who just preferred it bareback?

Spitzer wanted someone to know he was screwing them; Goldman wants someone to think that they're not!

So where is Goldman going to invest their "excess liquidity?" They did already. In their people! To the tune of $22 billion.

More sop for you!

Goldman, of course, with their conflicts is an easy target. But does that make you any money on the stock? You have to separate the story, from the stock. Just like Goldman's research. It's still an easy front run. Read it, and read between the lines and their conflicts, and the story they are spinning is easy to see.

Now compare Goldman to the market. You have to separate your views on the economy, from Wall Street. Some bears are using housing data, and unemployment in the US as indicators, of where the stock market is heading, when corporate America still has sugar daddies around the globe stimulating the economy, and buying their products, and yet, that data seems to be missing from their analysis.

Just read a Whitney Tilson piece on housing, and then go and sell everything. Will that make you any money?

Did he make any mention of the homeowner foreclosure stimulus sop? You get your equity in your home wiped out, but you get to live in it free for a year, until they take your house away.

Now the banks, still don't want to recognize the loss, and have your house and upkeep, because they still want to live in home price fantasy land. Why else did we hear from Obama yesterday, that now the Administration is looking to set up a plan where homeowners can now rent their underwater homes? Where did that idea come from?

Wasn't the homeowner supposed to have a sop thrown their way with the mortgage modifications? But if a bank gives the homeowner a modification, then any upside accretes to the homeowner, when housing come back. And if prices continue to fall, the homeowner can go back into foreclosure again, and live in the house free for another year.

So let the homeowner rent.

No sop for you!

And how about the unemployment stimulus? Anyone notice that INTC's margins will be going up? What do you think that comes from? They'll say its productivity, but in reality, it's just because of canned workers. Does anyone you know, in the private sector, really not doing more than one job where they are gainfully employed?

You can't trivialize the unemployment issues, or the housing problems out there, but at the same time, if you don't trivialize them in your stock work, you won't make any money.

Otherwise there's no soup for you.

Just a sop!