Goldman Sachs’ Hot Streak
The Wall Street Journal reports Goldman’s Pandemic Hot Streak Continues in Third Quarter
Key Points
- Goldman’s quarterly profit of $3.62 billion on revenue of $10.78 billion was better than stock analysts had forecast and sharply higher from a year ago.
- Bank of America Profit Falls 16%
- Wells Fargo Earnings Drop 56% Despite Pandemic Hit Subsiding
- JPMorgan’s James Dimon on Tuesday said the country was still at risk of a double-dip recession, which could cost his bank an additional $20 billion in loan losses.
Classic Explanation
Goldman has had a notably profitable pandemic. With a smaller lending book—about $112 billion to JPMorgan’s nearly $1 trillion—it is less exposed to defaults. And it is more heavily geared toward trading, which picked up this year as investors scrambled to reset their portfolios for a prolonged period of low interest rates and heightened economic risk.
Simpler Explanation
Goldman Sachs still does God’s Work.
For those unfamiliar with the simple explanation please consider God’s Work and Goldman’s Prayer
While acknowledging the role of banks in the financial meltdown [of 2007-2009], the CEO of Goldman Sachs said recently he believes his company is doing “God’s work.”
My Version of “Lloyd’s Prayer“
Our chairman who art at Goldman
Blankfein be thy name
Thy rally’s come, God’s work be done
In the Dow as it is in the Nasdaq
Give us this day our daily gain
And forgive us our front-running, as we punish those who frontrun against us
And bring us not under indictment
But deliver us from regulators
For thine is the cashflow, and the power, and the bonuses, forever and ever. Amen
Mish
When you risk-leverage people’s savings by 15 times you make money until the crash then the people lose everything they trusted the bank for. Then you have a bank that doesn’t risk-leverage everything they don’t make that much money. In 2011 the evil DIMS said the law they are pushing – saving accounts need to be protect but the lying baster pass the law which did just the opposite. No surprise there, right??? Soulless do nothing Joe
Robert Lighthizer Blew Up 60 Years of Trade Policy. Nobody Knows What Happens Next.
Trump’s trade representative joined the administration with one mission: Bring factory jobs back from overseas. The results so far? Endless trade wars, alienated allies, and a manufacturing recession.
Goldman Sachs — The Vampire Squid
Kudos to Matt Taibbi for giving GS that very appropriate moniker.
In a side note food inflation came in a 13.3% annualized in September.
Winning.
Wow, those guys at Goldman must be smart! Maybe we should start putting them in Cabinet positions to turn our fortunes around!
I was talking to a buddy about how much money could be made if you knew what the market was going to do the next day or hour.
For instance if I could get a 15 mins heads up that a tweet was fixing to drop about no stimulus or even a deal is done tweet with nothing behind it. I could also make a fortune.
Wells Fargo sticks with traditional fraud while Goldman keeps ties with the Big Boys.
Mish, what do you think about SW Airlines moving to ORD and the City “leasing” (selling) MDW to Bezos for 100 years?
The vampire squid have their magic Munchkin on the inside to attach feeder tentacles to the appropriate places, of course they’re doing well.
The bigger story Mish, the top 1% have increased their wealth by more than a trillion since March 18, to 34.6% of all household wealth, while the bottom HALF of the nation holds only 1.9% of household wealth.
No matter how you try to digest or rationalize this it means the future is going to se more and more converts to socialism. And I might remind you that the constitution does not dictate economic systems.
I am as opposed to socialism as any poster here including yourself, but because it is a fact that if we do not fix this inequality what we will end up with is all our worst nightmares, I am willing to be flexible enpough to diffuse the pending economic catastrophe. It already takes an ever more intrusive and powerful police presence with militarized cops to “protect” private property rights and it is going to get worse so the choice will be to fix it now as fairly as possible, or to go full police state. And if the police state blinks we will be Venezuela for real not just in the fevered minds of the far right dupes.
I do not know why I can’t embed a tweet I saw on my timeline this morning, but@TravisAllen02 posted a tweet that said more people have filed for unemployment in 2020 than voted for Trump in 2016. Now that is a tweet I can retweet over and over. How dare the Trump supporters abandon all decency to back him, there is nothing left on this planet that justifies supporting that orange ape, he is destroying the nation.
I have said for years people will be fine as long as their slice of the pie is big enough. Well the middle and lower class slice just keeps getting smaller. Inflation, crash and scoop, and printing will assure the masses become more reliant on government.
At some point things will crash but by that point the wealthy will control a large swath of the hard assets of the country with the ability to finally buy the rest for nothing but rapidly depreciating money they can borrow unlimited amounts of.
Property taxes will come in handy to help this process. Even people that own their hard asset may not be able to pay the property taxes on it if inflation rips and they have their money in none yielding assets. It’s the perfect setup.
It is also the script for a socialist take over and none of us should want that. What we should want is a functional capitalism with limits. There is no reason on earth why Elon Musk should get or deserve a 242% increase in his net worth just since the pandemic started, he already had tens of billions. In the same period that 40% of all renters face eviction, 8% of homeowners are or will face foreclosure because they are so far behind on payments they cannot ever get caught up.
By the way, I mentioned a couple months ago I saw way more than the usual number of flatbed tow trucks hauling away some new looking cars, yesterday I saw one with a new Jag aboard. Someone had a great job and great credit and leased a Jaguar, now gone. You can tell when it is a repo, there is no passenger or car following the truck. Usually with a breakdown the tow truck has a passenger. Or at least a car following it to the shop for repairs. I have even seen two houses in my HOA in pre forclosure which is scary, there is nothing like foreclosure sales to vaporize the appreciation of every house in a zip code.
I don’t want that in the slightest but I can see the writing on the wall like you.
I am not a gold bug but I don’t see how this next deflationary impulse is not followed by a massive wave of inflation.
When you retire from Goldman you don’t quit doing God’s work..You can become a true saint like Stephen Mnuchin and run the Treasury.
Having previously worked for Goldman Sachs is apparently a pre-requisite for being Treasury Secretary. Not sure how far you have to go back in time to find a Treasury Secretary who didn’t previously work for GS…but it has been a number of years.
And if you really do a good job….then you can become President of Harvard University….like Larry Summers…
One important thing to notice too….is it does not matter whether the President is a Democrat or a Republican….a Goldman alum gets the Treasury job either way.
Forgot to hit the #sarcasm button.
The most of the previous CEOs have something else on common. Closely associated with the original GOLDman name. Just sayin.
Isn’t there a simple explanation?
Such as, Golden Sacks is a purely investment bank catering to the needs of the 1%, which is doing exceptionally well.
The other banks have commercial banking operations with dealings with main street, and that is not doing so well.
If memory serves, investment casinos didn’t have access to FED emergency funds until 2009 when all caution was thrown to the wind in order to save the system from itself. Now they are confident that if they screw up big, there is a Santa Claus.
“Isn’t there a simple explanation?
Such as, Golden Sacks is a purely investment bank catering to the needs of the 1%”
Definitely
But you forgot to mention God only caters to the 1%.
“If you want to know what God thinks of money, just look at the people he gave it to.” (Dorothy Parker)
This news is sure to inspire confidence in the state of the nation’s economy! Surely the boon will trickle down to lesser financial institutions soon and then to the hourly workers in short order–and just in time for shopping season!