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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: E_K_S who wrote (37602)	4/27/2010 10:18:43 AM
From: JakeStraw	Respond to of 78486

Ethics and politics aside I still think Goldman will be the king of the investments banks.

To: E_K_S who wrote (37602)	4/27/2010 12:11:16 PM
From: Madharry	4 Recommendations Read Replies (2) \| Respond to of 78486

I admit that I am biased. I dont think much of GS ethics, how ever so far watching the hearing the congress people are coming accross as misinformed irate buffoons. one of them suggested making market makers having fiduciary responsibilities. can you imagine goldman sachs marketing treasuries or long term bonds saying its our duty to inform you that we think these are terrible investments and that you are much better off in TIPS or hard assets. The senators dont seem to grasp the notion that GS is a market maker meaning they are making a market. market makers are frequently short. If they cant be short how do they make a market. Only a moron would expect them to offer you unbiased advice as to whether buying or selling is the right thing to do. As far as making money being short the mortgage market, thats what they do, i dont see anything wrong with that. It wasnt illegal even if the were net short for a long period of time. This looks some feeble attempt to shift responsibility for disastrous national mortage policy, poor regulators and ludicrous rating agency decisions on to a major market maker who made a lot of money off this. I just wish we would have seen this kind of questioning before Congress offered Paulson and Geithner carte blanche in giving the store of ways. I say fire all the incumbents including Geithner and Summers. This looks like less an attempt to figure out what future restrictions to impose on market makers than a desperate attempt of some of these incumbents to get re-elected. everything in my portfolio going down now. GS position is holding up better than most.