So why a sell off now? Here's something for you to chew on.
Assumption #1 - there is a PPT (Plunge Protection Team) consisting of large banks, etc tasked by the Feds with preventing another large meltdown
Assumption #2 - Goldman is a major player on that team, in fact, if Goldman doesn't participate the team is not nearly as effective
Fact #1 - The Obama administration sued Goldman a couple weeks ago
Fact #2 - The Democrats are in obvious trouble coming into this years elections and are desperate to prevent another meltdown between now and then
Now, if you're Goldman, what strategy might you be able to employ to deal with the SEC suit? Hmmmmmm?
Tuesday, April 27, 2010
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Let's remain open to the possibility this may simply be a public flagging and GS (as a part of the PPT) would not necessarily be looking to retailiate here. Even though GS has that leverage, I doubt either side wants to start a dick waving contest. I'm thinking GS would prefer to slink back into the darkness and get back to business as usual rather than start a war between the financial elite and a gov't bowing to populism. Take a few licks here and there / ride out the storm and become even richer once the velocity of money beings whipping around.
ReplyDeleteThat's just me trying to keep an open mind. On a side note: GS has been in posititive territory for the vast majority of the day.
I hear you and agree that GS is using the market as a tool to blackmail the Democrats. They are saying "overlook our criminal activity or else we will crash the economy and make you look bad for re-election".
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