Posts Tagged ‘Goldman Sachs’

Notes From Underground: Podcast? Yes, Podcast

November 20, 2018
It was a pleasure to spend time with Peter Boockvar, David Rosenberg and Richard Bonugli as we prepared a Thanksgiving feast for the global macro world. We cover many relevant areas and provide measured analysis of important financial concerns. Pour your favorite libation and take a listen as you sift through the cornucopia of ideas and develop possible profitable trades.


Notes From Underground: Goldman Ought to Learn 2+2=5

January 20, 2016

Open question to Goldman Sachs: ARE YOU ARROGANT OR DEAF? There’s a story in tomorrow’s Financial Times there is a story titled, “Goldman Sachs Makes Large Donation to Pro-EU Campaign.” It is being reported that Goldman has made a large six-figure donation to Britain Stronger in Europe. Whoever thought this up needs their head examined. There is nothing in the world more TOXIC than the big investment banks. In a potentially existential issue for British democracy, the idea of a large U.S. investment bank playing in the U.K. referendum will stir the anti-EU forces to push harder for a NO vote. The anti-euro camp has many strong, legitimate former officials working hard to push England further from the restrictions of an overzealous group of Brussels eurocrats.


Notes From Underground: The Day Is Upon Us … Be Patient and Don’t Act With “Water-Like Impetuosity”

December 17, 2013

Tread lightly into the throes of Fedspeak for first comes the FOMC statement a 1 p.m. CST followed by the last press conference of Chairman Bernanke’s term at 1:30 p.m. The markets are going to be volatile as confusion reigns in all asset classes. Today, the Treasury market was trying to reassert a steepening bias into the 5/30 yield curve as the FIVES were strong and the 30-YEAR YIELDS were rising. However, by day’s end the 5/30 retraced and closed unchanged on the day (if you trade the curve in futures terms the ratio is almost three FIVES to one THIRTY-year bond). Consensus has changed and the bias is for a tapering the question is: HOW LARGE? I have assumed a $20 billion tapering and I will stick with that “bold” conjecture. It is important to listen for any language of forward guidance on the unemployment threshold for if the Fed were to hint at lowering the 6.5% threshold, markets will reverse course, especially the S&Ps and DOW, which have spent the last few days in correction mode.


Notes From Underground: AUGUST 30 ,2002 … A Revisit To The SOAPBOX

May 14, 2012

LETTERS TO THE EDITOR – Profit centres too big to fail.
30 August 2002
Financial Times
(c) 2002 The Financial Times Limited. All rights reserved

Sir, John Plender (“How banks got in a mix”, August 21) correctly identifies the systemic dangers that accompanied the passage of the Graham-Leach-Bliley act. The repeal of Glass-Steagall has pushed the US banking system to the brink of “moral hazard”. The conglomeration of all financial services under one roof has entangled banks in numerous ethical conflicts. Additionally, Graham-Leach-Bliley has made several institutions so large that the Fed cannot allow them to fail.

A single institution’s deep involvement in every facet of financial dealings does not create greater synergy but greater risk. These large, private profit centres know they are too big to collapse. This realisation adds great uncertainty to the entire financial landscape. Rewarding private profits while socialising the risk is a pathway to disaster. Glass-Steagall should never have been repealed without a bank forfeiting its right to Federal Deposit Insurance Corp insurance.


Notes From Underground: “Everybody’s Talking At Me I Can’t Hear A Word They’re Saying…”

December 1, 2011

It was a day of dueling flapjawing as the European elite was out talking about everything that needs to be done to save the EURO and Sarkozy promising that there would not be any European defaults. Again to paraphrase Jimmy Breslin: Sarkozy is a little man in search of a balcony. The time for public orations is past and the call to action is immediate and real. Global investors don’t want any more rhetoric. Next Friday is considered the day of reckoning but if the EUROCRATS have any sense all the needed policy will have been put in place by the December 9th meeting so that the markets will have absorbed the “shock and awe” and there will be no disappointment.


Notes From Underground: And The Winner of This Year’s GREENSPAN MORAL HAZARD Award Is … JON CORZINE

November 1, 2011

Another day another crisis in EUROLAND, or the LA LA LAND of Wall Street, which we will know refer to as THE LAND OF MORAL HAZARD. The leaders of the Wall Street establishment have proven again that no risky investment is too big as long it is with OPM (other people’s money). Jon Corzine went all in on a bet on PIIG DEBT in an effort to increase the annual returns at MF GLOBAL. In a ZIRP environment, a clearing house has a difficult time making money because the earnings, which are the overnight float, are so extremely low. In order to generate greater earnings on the FLOAT, greater risks need to be taken so the need to purchase riskier sovereign debt becomes the outlet.


Notes From Underground: The FED’s new drinking game–every time you hear the word TRANSITORY, drink a shot (we are going to need it)

April 11, 2011

The markets were a bit heavy today as profit taking set in amid rumors that GOLDMAN was selling some long-held commodity trades. I cannot confirm the rumors as nobody from the hallowed tower called to let me know but the rumors weighed heavily on the commodities and certain commodity-related currencies. The GOLD made all time highs and the SILVER put in 31-year highs and both wound up closing lower on the day. Such price action in the precious metals would serve warning about a correction, but as usual I advise consulting your favorite technician or book on technical analysis  to determine the best course of action.


Notes From Underground: Greece is rated as JUNK; Risk came off and Mike Bloomberg is the most nervous man in America

April 27, 2010

There was no joy in watching the Senate hearings. It was amazing to watch the performance of the Goldman traders as they were caught off guard and appeared not to know how the global macro world really works. Senator Carl Levin was far more prepared in his knowledge and pressed his case–the issue was not Goldman but rather the entire Wall Street model. They were totally caught off by Levin’s knowledge and could not answer the questions that raised relevant issues about the entire financial architecture. The heads of Goldman seemed to throw these managing directors to face M1 tanks armed only with pistols.The accusatory nature of this political theatre is going to undermine the foundation of Wall Street as Main Street is going to be uneasy about the entire culture.


Notes From Underground: If We Ran the World

January 22, 2010

Just thinking in the big picture…

If we ran Goldman Sachs, we would file to return to being a partnership which would preempt the Obama “Volcker Plan.”  Then Goldman should partner with  Blackstone and /or other private equity firms to ensure that they had a ready pool of capital. This would allow Goldman to lever its theme of being the smartest guys on the street and remove the government from the equation. Notes from underground is always about thinking outside the box! More will be forthcoming but we think we have been ahead of this issue for years, so stay with us on this.

Meanwhile,we view this newest wrinkle in the landscape as incidental noise as this will be a long drawn out process. The cheap money will prevail  but there is no doubt that global capital is nervous!