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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Arran Yuan who wrote (69659)	9/28/2007 3:50:59 PM
From: RealMuLan	Read Replies (1) \| Respond to of 116555

The reason I posted that bull argument is want people to compare how weak and pale of the bulls' argument comparing with bears'<g> They are not even on the same scale<g>

To: Arran Yuan who wrote (69659)	9/28/2007 5:39:56 PM
From: Incitatus	Respond to of 116555

Mr. Schiff is one of the few non-biased investment advisors (not committed solely to the short side of the market) to have correctly called the current bear market before it began and to have positioned his clients accordingly. Few? What about Goldman Sachs? Goldman knew exactly when the credit problems would hit and played it perfectly. "As the credit markets fell apart over the summer, causing the prices of hundreds of billions of dollars of mortgage-backed bonds to plunge, Goldman Sachs (Charts, Fortune 500) had already positioned itself so that it would profit massively from a decline in those securities. Thursday, Goldman reported earnings for its fiscal third quarter that were far above expectations. While several businesses were surprisingly strong in a difficult period, the chief contributor to the earnings blowout were trades that made money from price drops in mortgage-backed securities. Goldman indicated this in its press release when it said that "significant losses" on certain bonds were "more than offset by gains on short mortgage products." (In Wall Street parlance, being "short" a stock or bond means that you will make money if it goes down in price.) "Goldman Sachs showed an ability to not only protect itself from the problems in the market but also to capitalize on them," says Mike Mayo, banks analyst at Deutsche Bank (Mayo rates Goldman a buy.)" money.cnn.com The only people at Goldman who get it wrong are those whose holdings get marked to market, and only when they get marked to market. The others are pure genius.