Print
Hits: 5565

I received a few emails about this monkeybusiness.com blog, and as it turns out - I like them.

Hears an excerpt:

 "It appears that AIG needed to post $20 billion of collateral on credit default swaps with Goldman and they didn't have the cash!

Remember when Hank Paulson did an immediate about face on lending AIG somewhere between $70 and $85 billion?  Turns out he had a meeting September 15 with Lloyd Blankfein, CEO of Goldman Sachs.  Mr. Blankfein was the only bank CEO in attendance.  Imagine that.  I'm sure he was there because as the head of Goldman, he was obviously smarter than everyone else.  Couldn't have had anything to do with Goldman going down the toilet if AIG went down right?  Of course Treasury and Goldman are completely denying it.  Richie and I have been scratching our heads for over a year now because we KNEW that Goldman was a huge player in AAA rated CDO's and they did TONS of negative basis trades (buying monoline wrapped AAA CDOs paying L+50 and then buying credit default insurance from SOMEONE and paying then L+10).  We assumed it was Ambac and MBIA, but when those guys got downgraded, nothing really happened to Goldman.  Who the hell did they lay the risk off with?  Now we know.  It was AIG!

When AIG was taken into conservatorship the Fed appointed Edward Liddy, a member of Goldman's board (he resigned upon his AIG appointment), to run AIG!!  AIG immediately drew $37 billion to meet collateral calls.  We are told $20 billion was due to Goldman Sachs.  I honestly don't think I can do another Goldman Superheroes!  What a joke.  All the talk and all the articles about how superior Goldman is and how their risk management is so fantastic.  All a bunch of bullsh*t.  They get the jump on everyone because they know the plays ahead of time."

See also "The Goldman Superheroes, parts 1 and 2", funny enough.

I have had a few readers caution me on shorting Goldman, because Goldman has effectively convinced the world that their Sh1t doesn't stink. Well, guess what my loyal readers. It smells the same as just about everybody elses. The Goldman trades are approaching one of the most profitable for this year. There is still 20 or 30 points of potential profit.

For those who don't know my position on Goldman, see:

  1. Goldman Sachs Snapshot: Risk vs. Reward vs. Reputations on the Street 
  2. Reggie Middleton on Risk, Reward and Reputations on the Street: the Goldman Sachs Forensic Analysis
  3. Reggie Middleton on Goldman Sachs Q3 2008 
  4. Goldman Sachs valuation update: Buffet's strategic investment and public offering