Funny how I've been complaining about fees and calling financials foes over the years. Thank you Jack and the Beanstalk.
Goldman got b-smacked Friday by the SEC, who suddenly grew a spine. The talk is that Goldman will slither out of this one with a fee or something silly. But as some have written, there is never just one cockroach.
I am not trading Goldman. But I am looking at the sector as being grossly overvalued once the free money pump is shut. And don't you think that shutting will happen sooner rather than later when the public breaks out the torches and pitchforks to get Wall Street?
We always talk about complacency in the market and as long as times are good nobody cares. But when the tide goes out, we will see plenty of naked bankers swimming for their lives. (Ooh, the visual is both enticing and creepy).
"We are doing G-d's work" they crowed. Yes, and now the Satan that is govenment is coming after you.
I hope they all are exposed and taxpayer money gets put to better use than the foolishness of giving banks free money and expecting them to lend to the public.
Should you trade financials? There may be a bounce back but I think the party is over.
4 comments:
If anything, the vampire squid has taught us that professional collaboration works...
Yup, the volume on the sell-off was the highest since late January this year when the rebound took place.
Most like rebound today was due to some anticipation as Goldman report results soon.
I reckon if Goldman can't take the pressure any longer, they'll start pulling other banks in the waters.. The market is so interdependant... and that has never changed even after the crisis.
more like they will take other rats down with them
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