http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2008/03/16/cngold116.xml
bump - let’s hope this isn’t next
Isn’t $3 billion compared to others, chump change?
They may get hit hard, but I dont think they have $175 billion of bad debt on the books like Bear
It’s not the 3 billion, it’s what it means on the fear scale. These guys are the best, right?
Honestly, no one is ‘the best’. Goldman is the most powerful as their list of employees/ex-employees and business ties are among the best in the world. I believe they are using the Bear Stearns news as a chance to let out some of their own misfortune, but I believe they have a lot more than 3b in losses on the books. Goldman was the only house that ‘profited’ at the beginning of this mess and I don’t think anyone beleives them, or should, as they created the profits by marking their risky derivative assets at BV because they claimed the market was acting ‘irrationally’. Tell me, how long must a market ‘act’ in a fashion until that fashon becomes rational?
3bn is chump change for GS, no doubt. They have made big on a lot of counter transactions, as they predicted this, and had a good risk management team involved here, and were not stupid enough to put their eggs all in one basket. Infact GS saw this sub prime coming and all the big heads had a meeting closed away in a boardroom somewhere. I do work for them so I guess a bit biased here, but believe me, GS is under no strain whatsoever due to writedowns. Of course there will be lack of growth due to the current markets, but thats expected in the current crisis
3B is chump change. But financial company’s value is mostly on trust. If people don’t trust you, then game over. I think one of the reasons why JPM jumps this much is because they can create this perception that they are the white knight in the crisis. This makes people trust them and then 12B of value is created from nowhere. It is a bit strange to me no other firms join in to help. Maybe they all have problems?
The day I start treating the Telegraph as a source of reliable business information (as opposed to a source of funny right-wing opinion), will be the day I finally go broke.
mar350 Wrote: ------------------------------------------------------- > Honestly, no one is ‘the best’. Goldman is the > most powerful as their list of > employees/ex-employees and business ties are among > the best in the world. I believe they are using > the Bear Stearns news as a chance to let out some > of their own misfortune, but I believe they have a > lot more than 3b in losses on the books. Goldman > was the only house that ‘profited’ at the > beginning of this mess and I don’t think anyone > beleives them, or should, as they created the > profits by marking their risky derivative assets > at BV because they claimed the market was acting > ‘irrationally’. Tell me, how long must a market > ‘act’ in a fashion until that fashon becomes > rational? only $1Bn of writedowns for GS. Announced EPS was $3.23 Even during these volatile times they still managed to squeeze out a profit and beat analyst expectations…
goldman is up 20 bucks. LEH up 11 (about 33%)
TokyoBBB Wrote: ------------------------------------------------------- > > Even during these volatile times they still > managed to squeeze out a profit and beat analyst > expectations… GS is such a hated stock, it pains me. Sadly, it will continue to underperform with the rest of the brokers, despite the fact that it is one of the best managed firms on the street.