Goldman Sachs is making money again!Here is an image of today's front page of the New York Times. Note the story about Goldman's rumored profitable second quarter of 2009. It appears right under the headline story on the far right.
The article begins:" Most of Wall Street, and America, is still waiting for an economic recovery. Then there is Goldman Sachs". The story drips with envy, suspicion, and contempt for Goldman, evidently because they are making money by taking risks others are unwilling, unable, or fearful of bearing.
This is just one manifestation of the "lynch mob" mentality so prevalent among investors, the talking heads we see on TV and read on various blogs, and among the general public. Someone must be responsible for this disaster. We shall find them and they shall be made to pay for their crimes.
I discussed this phenomenon on pages 54-55 of my book. It is always associated with the emergence of a strong, bearish investment crowd and with the disintegration of the bullish crowd which preceded it.
This is more evidence that the low point of the Crash of 2008 was the 666 level established by the S&P 500 in March of 2009. Better times lie ahead.
If I believed that Goldman Sachs was truly making a profit, I would not be looking for the tar and feathers, but... I believe Goldman has succeded in gaming the system so that they get the benefits of risk while taxpayers and market participants of all stripes (e.g. high frequency trading) pay to safeguard Goldman's risk without getting anything in return.
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