In a world filled with innuendo, false flags, and more one thing remains constant: What is Goldman Sachs (GS) up to and more importantly – why?
No matter what one “thinks” about this firm one thing is incontrovertible: they didn’t get where they are because they’re stupid. Far from it.
There’s probably no other company on the world stage that has had more influence in financial matters than GS. Love them or hate them, it doesn’t matter. Yet, to ignore them or to take your eyes off as to discount even their smallest moves as “irrelevant” is at one’s own peril. For GS doesn’t make any move (even taking out the trash) without first considering all the ramifications or exploitations that can come of it first. Period. (more…)
Perhaps you heard on the news yesterday that Charles Keating is now dead, having roamed the Earth for 90 years. I thought I’d take this opportunity to share a snippet from my Panic, Prosperity, and Progress book, which features a chapter on the S&L crisis in which Keating was so prominently featured. I think memories of Keating are absolutely charming, because it helps us remember a day long ago when financial criminals went to prison – - at least for a while. Of course, Lloyd Blankfein, Jamie Dimon, Ben Bernanke, Steve Cohen, and all the rest of them are cheerfully roaming free, wallowing in ill-gotten cash…………so welcome to the modern age! Anyway, here’s a tidbit: (more…)
Since I don’t want to jinx anything, I’ll put up a “one day does not a bear market break” post. Unless XLF breaks beneath its horizontal breakout level, bears are still very much vulnerable and must remain on the defensive.
MTG announced a pretty wild earnings surprise today and this beaten up and “left for dead” stock ran out of the gate by 10%.
It’s a name that’s been mentioned by our new Slope friend Jesse and some of the talking heads on CNBC have also touted it of late. What’s all the fuss about? I must say, I have no clue, but it is a leveraged play on the housing recovery. From all time highs above 70 five years ago to a low of 66 cents, you can file this one in the Zombieland files (a la AIG, C, BAC). (more…)
If you want a breathtaking view of how much financial stocks have strengthened, look no further than the chart of FAS below, which is the triple-bullish ETF. The interesting thing is that one didn’t have to be lucky enough to buy it in depths of the financial crisis for a bargain price; it was actually very depressed in October 2011, only a year and a half ago. It’s up 345% since then. I won’t show its opposite here, symbol FAZ, but it basically looks like a ski slope ever since its inception. (more…)