Do you believe in Miracles?

Telegraph story and BBC's Robert peston on the same subject

$3.44bn in 90 days!

What a remarkable resurrection? $3.44bn in just three months, only some months after they had to be bailed out by the tax payer. But then they had not only received cash but grandiose monetary instruments that allowed them to re-valuate rubbish and garbage.


Not only are they making serious profits; they have also repaid the $10bn of tax payers' money already: good boys!


Incidentally the same good boys, Goldman managers, sold $691m of their own shares between 09/2008 and 04/2009 - into a falling market. Compare this to $435 being sold by the same mangers between 09/2007 and 04/2008, when shares were almost three times higher... which makes it a +300% increase in volume; so does that mean they do not believe in the generous offer of balance sheet cosmetics, ultra low interest rates and cash floods being sustainable and sufficient to make holding on to Goldman shares worthwhile?

I believe they are right!

Carpe diem!

Geitner versus Darling

Geithner versus Darling

http://www.bbc.co.uk/blogs/thereporters/robertpeston/2009/03/geithner_versus_darling.html


US Treasury Secretary Timothy Geithner wants to get private capital on board to purchase trash from factually insolvent US banks; Alistair Darling, British Chancellor, is providing insurance for offering the same effect to British banks; which is the better solution?

I declare that question irrelevant: trash stays trash, whether it is wrapped in silver plated gold or in gold plated silver; in essence it stinks.

The only difference is that clever Timothy thinks private investors’ involvement will provide confidence into what everybody knows is rubbish; he takes the more risky path?

Not really, I dare to say there won’t be one private investor North of Cape Horn that won’t insist on a default guarantee or compensating hedging, behind closed doors.

Now that’s new? It’s the American way!

Carpe diem!