Just Another Day in a Shark Pit ~ The Risk Averse Alert

Tuesday, April 27, 2010

Just Another Day in a Shark Pit

One thing I learned today during Goldman Sachs Day in Washington D.C. was I cannot hear members of the U.S. Senate say "shitty deal" enough...

Funny. Seems when the word "Timberwolf" entered the conversation the "deal" hit the fan. This was a little after 11:00 a.m...

SPX 5-min

That's right about when the S&P 500 gapped lower. Interesting, too, is the fact this gap occurred at the lower end of a prospective channel containing the index's advance since early-February bottom...


Whether top is in might depend on the frequency we hear the words "Glass-Steagall" over coming days. Among the mysterious purpose(s) of today's Senate hearings — an event Team Fraud took quite seriously, so as to broadcast ten hours of proceedings relatively commercial-free — appears a threat to clean out the toxic crap choking the global financial system.

Indeed, one of the more shocking revelations came late in the day when CEO Lloyd Blankfein practically begged Senators for effective financial regulation. This was right around the time the conversation had turned to the prospect of restoring a Glass-Steagall standard.

Which begs the question: how weak is Goldman Sachs? Were today's hearings but an instance of sharks biting back? Who's getting the "shitty deal" here? A flock of lawyers behind Goldman's middle layer appeared forlorn contrasted to relative serenity buffeting Yoda, both front and back.

It seems the SEC's charges were appropriately played out in today's Senate hearing, as their civil fraud case against Goldman was suspiciously buffeted while at the same time a damage control operation appears to have been erected. This desired outcome is an end made clear in the very suggestion of a return to Glass-Steagall. Such an act would bankrupt everyone, Goldman as well as that similarly vulnerable interest who pushed the SEC button.

Amidst its ground troops, it appears the firm struck back as best it can.

So, then, wha la, now the Eurozone card comes into play.

Just another day in a shark pit...

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