Here we go again. Now please, I like Mexico. Energy is important to Mexico. But the oil will still be there and Mexico will survive. I personally believe that this whining from Goldman Sachs about Fitch's downgrade of Mexican debt is really about Goldman Sachs' exposure to Mexican debt! So there is nothing noble in Goldman's exhortation against Fitch.

Goldman is defending the credit rating of Mexico. But Goldman is really defending the clients it serves and their credit costs, and ultimately Goldman Sachs profits!

Who cares if you are getting scammed by gasoline that costs more than it should. Goldman doesn't care about you!

It will never end. Goldman Sachs will forever be the smartest, yet dumbest company on the face of the earth. You think they are hated now? Wait til the Fed removes the punch bowl and the average Joe's 401k crashes back to earth.

1. Goldman's CEO, as one guy said, gets the swine flu shot and then catches hoof and mouth disease by saying that he is doing God's work. Since when, Mr Blankfein, is God's work running the price of oil to the moon?

2. Goldman gets the swine flu shots as mentioned above, yet doctors and pregnant women in NYC go without. Morgan Stanley gave their swine flu vaccine back. They have half a brain. Goldman Sachs has no pr brain, not an ounce!

3. Goldman Sachs, and investigations will have to bear this out, may be using some insider information to be right all the time. Apparently their hedge fund buddies have been doing this, and we hope here that Goldman gets caught for the same evil deeds. They are innocent, lol, until proven guilty, but I hope they go down.

In retrospect, main street continues to suffer, and Goldman continues to take the market to highs that have nothing to do with earnings. It is all about the central banks.

I am so waiting for the SEC to TAKE DOWN GOLDMAN SACHS. This pyranha of financial immorality and disgust may have violated securities laws according to an investigation by McClatchy Newspapers. From the McClatchy site comes this:

""The Securities and Exchange Commission should be very interested in any financial company that secretly decides a financial product is a loser and then goes out and actively markets that product or very similar products to unsuspecting customers without disclosing its true opinion," said Laurence Kotlikoff, a Boston University economics professor who's proposed a massive overhaul of the nation's banks. "This is fraud and should be prosecuted.""

Goldman, as we know, escaped the meltdown that others like Lehman Brothers faced because they were betting against the products that they sold. I hope that Henry Paulson and Lloyd Blankfein never have a good night's sleep for the rest of their pitiful lives because of this.

These folks have sent lawyers out to repossess homes that they knew could not be paid off with the subprime loans they were facilitating, in the form of securities to unsuspecting investors. And they did not even believe in the value of those securities and failed to disclose that they were betting against them, even as they sold them!

It is incredible just how far men will go to make a buck. I hope that prosecutions follow, and if it can be proven that they knew these investments were going to become worthless, there will be hell to pay.

Now we discover that the carry trade, borrowing or shorting the US dollar, is the casino play that is driving up costs for the average man on the street. The Fed doesn't care. No doubt, Goldman Sachs doesn't care since they have been heavily involved in asset investing. Or should I say asset gambling. And Nouriel Roubini predicts a savage unwinding of this trade. Maybe that is why Goldman traders are short Reits. You must consider Goldman ahead of the game at all times. But man on the street, they don't care about you, or your children.

It has just been reported on CNBC that the worldwide banking system, the one world financial system, will be imposing global reserve requirements that will be much higher. We must realize that this will impact Goldman Sachs and the other major US banks. It is estimated that investment banks will be hurt the worst and could lose 1/3 of profits according to an article seen on FT.com! And as Japan knows too well, the raising of reserve requirements is highly deflationary.

Just remember that this same Basel crew, under guidance of the Bank of International Settlements, allowed off balance sheet banking in the first place. The reason Goldman Sachs became so infamous was because they were offering CDO's while betting against the viability of these investment vehicles. But now, this same international banking cartel, having made their money with the shadow banking system, is now going to tightly control that system, making everyone think they are the good guys.

THEY AREN'T THE GOOD GUYS. They make money first off inflation and then off deflation as countries go more and more into debt to their central banks which are privately owned. Goldman Sachs alumni, whose wall of shame is below, are well represented in the raiding of the US treasury once the inflationary bubble pops, which it has big time.

We know that the fed bought almost 1/2 of the 7 year bonds, after the 5 year auction was weak. We know that Bernanke lied to congress and said that would not happen. We know that the Fed is afraid that slow bond demand and interest rates rising is unacceptable. We know that Goldman Sachs was just one of the retail dealers the Fed used to buy the treasuries.

Pretty weird stuff going on and something is really wrong if the Fed is that worried. They were literally running around like sneaky people in doing this. They give the banks a little profit, and keep the people in the dark, and they allow rates to remain low as they cannot afford the bond market to tank.

FASB is going to renew Mark to Market in some way on in  the future. That will likely make the banks zombie banks for along time. The Fed may be ok with that and will support these banks with government business only. Really weird stuff isn't it? The only conclusion I can see from this is that the Fed is very afraid of any fast recovery. We cannot afford to have a fast recovery. I sound like Cramer I know, but Cramer would never tell you what I am telling you.

Regardless of how the stock market acts, the recovery will be very very very very slow. It will be like watching the minute hand on a watch, or counting the drips from a slowly leaking faucet.

Add to all this the revelation that flash trading, dark pools and all the other ways Goldman has to beat out the small investors appears to be under investigation and we have a lot going on here. If the market can bubbleisheously climb the wall of worry that these revelations give, then truly it is a bubble like no other. This bubble could well be the mother of all bubbles, or it could cause the deck of cards to crash down. It will be interesting to follow the next couple of months.

Oh, and here is a little link to the Fed stealth bond buying mission. Don't forget to come back to see my Goldman Sachs wall of shame:

Goldman Sachs didn't bother to tell their smaller customers more detailed information regarding buying and selling of stocks while they were informing the large hedge funds about this knowledge. The United States of America bailed out this pig and yet they did not even bother to tell certain investors that, as one pundit said, they were flying economy while the whales were flying business class. I hope people with money pull their money out and make this pig squeal. It is past time that this company pay for their evil deeds.

Whether this activity is legal or not, it is immoral. I do not know how the executives of this Goldman Sachs pig even look at themselves in the mirror! I hope this company pays for the many evils it has done against the American people of which this is one: http://finance.yahoo.com/tech-ticker/article/310423/Goldmans-%22Trading-Huddles%22-Another-Black-Eye-for-the-White-Shoe-Firm

Goldman Sachs is a bank. It was an investment bank and applied to become a commercial bank so that it could get money from the government. Yet it bets and is the casino for Wall Street in violation of rules governing commercial banks.

On the discussion below about High Frequency Trading, Goldman Sachs announced that they don't make much money on the practice. That may very well be true. But below I had discussed the effect of HFT, the phony volumes seen in the Stock Markets. I believe that Goldman makes big bets on stocks based upon the behaviors of these stocks. Volume helps GS get an edge, and helps them understand which way a stock will go in price.

This could result in massive trades and if they manipulate the market volume, they can manipulate market prices. Without a fair and free market, small investors can only be swindled and the stock market is seen as being a strong market inaccurately. Tyler Durden, as quoted in the NYT warns:

"As the market keeps going up day in and day out, regardless of the deteriorating economic conditions, it is just these HFT’s that determine the overall market direction, usually without fundamental or technical reason. And based on a few lines of code, retail investors get suckered into a rising market that has nothing to do with green shoots or some Chinese firms buying a few hundred extra Intel servers: HFTs are merely perpetuating the same ponzi market mythology last seen in the Madoff case, but on a massively larger scale. When it all blows up, the question is whether the SEC will go after the perpetrators of this pyramid with the same zeal that it pursued Madoff himself. We think not …"

:

Ok, this is the deal. The Chinese want a stable bond from the US government. It cannot be allowed to weaken because they could dump the bonds. The Japanese may do the same. The result would be sky high interest rates. I always hear people, moreso a few months ago, talking up inflation and how we are going to have inflation. However, the United States government, IMO cannot afford to have inflation.

So then, how are we going to avoid inflation? Well, the stock market is going up, and will continue to do so for awhile no doubt. But people are anticipating a change. Lets take the example of Simon Property. They had a little over 100 thousand shares short in May, 2009. That number went above 25 million shares in June 2009. Someone is expecting a change and all Goldman Sachs and the hedge funds that follow have to do is to start selling stocks like mad. They are highly leveraged to stocks and operate like casinos. They are, in effect, the house.

If the government sees weakness in bond sales, and/or a rise in interest rates on the 10 year bond, they have two choices. One is to go into debt even more and scare our biggest creditor China even more, or they may just let the economy go down again. After a couple of years, the bonds will have been sold, as people are scared of the stock market and pile into the treasury bonds. Presto, the bond problem is then solved.

I am not predicting this will happen, but I am not discounting the possibility. Some people hedge their inflation plays by shorting commercial real estate with the SRS, or short the S&P 500 with the SKF. I just don't trust Goldman Sachs or the government. The M2 multiplier is shrinking, meaning the economy is contracting big time. Here is the technical case for deflation which could get worse.

Whatever happens, do not trust the pundits and watch carefully the excess reserves of the banks and the shorting of the REITS like Simon Properties. Also pay close attention to treasury bond sales for softness. I am not a financial advisor, but these are just common sense indicators to watch right now.

With regard to the September, 2008 run on the money markets, which reduced them by 500 billion dollars in 2 hours, it has not been revealed who made that run on the banks. Some have said that the Chinese made the run but what was their motive? I believe that the international bankers made the run and certainly Henry Paulson owes the country an explanation of why he robbed 700 billion dollars from the US treasury, and why he worked with the Fed to reduce interest rates to the banks while they failed to pass those savings onto the consumer. Why did he lie and say that the credit crisis was contained to just subprime when people were predicting it would spread to Alt A, option arm and prime loans, as well as to commercial real estate and credit card defaults?

Alex Brummer has reviewed the Rolling Stone Magazine article blasting Goldman Sachs and said this:

"In a searing analysis of Goldman Sachs's survival strategy down the generations, the American writer Matt Taibbi of Rolling Stone magazine has described the firm as 'a great vampire squid wrapped around the face of humanity, relentlessly jabbing its blood funnel into anything that smells like money'.

Taibbi's thesis is simple and he sets it out in meticulous, if one-sided, detail - written with a fury not seen in the more conventional financial press. According to him, Goldman Sachs is at the heart of all that has gone wrong with Anglo-Saxon capitalism.

'Manipulation'

He alleges that it has been 'manipulating whole economic sectors for years, moving the dice game as this or that market collapses, and all the time gorging itself on the financial vicissitudes that are breaking families everywhere - high petrol prices, rising consumer credit rates, devalued pension funds, mass lay-offs, future taxes to pay off bail-outs.'

In other words, Goldman Sachs is to blame for many of our ills, ranging from the surging cost of petrol to the collapse in value of pension funds and the stock market, as well as other investments which have suffered big losses."

Read more:Did Goldman Sachs, reaping huge profits, cause the credit crisis?

Certainly the off balance sheet banking that was established at Basel 2 in 1998 allowed risky loans to be hidden off the balance sheet of banks. This practice, which lead to liar loans, option arms and the like, was brought to our shores, no doubt by Goldman Sachs men. Robert Rubin was running Citibank when all this off balance banking came to the United States. It is not a Republican versus Democrat issue as you will see from the real Wall of Shame that is offered to you below. It is a consumer versus international banker issue. Goldman Sachs is a prime mover in the architectural structuring of this class warfare from the top.

The federal Reserve Bank is a private bank, controlled by the multinational banker families who also control JP Morgan Chase and Citibank. Goldman Sachs is the economic terrorist that bet against their very own customers who were chasing after returns with Toxic CDO's that they thought were AAA quality. Goldman Sachs knew they weren't AAA quality and bet against the CDO''s that the investment bank community was spreading throughout the world and to pension funds in the USA as well as to counties and towns both here and abroad.

Then Goldman Sachs alum, Secretary of the Treasury Henry Paulson, virtually held the Congress of the United States hostage and told them someone was running the Fannie Mae money markets and that he needed 700 billion dollars from the US government. Some say it was China who ran the accounts, bleeding the US money markets of 500 billion dollars in two hours.But I am not so sure. The only people with motive were the family of international bankers, the Rothchilds, and the Rockerfellers, who could have been hurting with the commercial paper markets freezing. Interesting that no one has ever told the American people who ran these money markets in September, 2008.

The question remains, did Goldman Sachs cause the global financial meltdown and if so why are these folks not being prosecuted? The insider trading, not of stocks but of information, may very well be Goldman Sachs real advantage. Goldman Sachs also uses a program trading system to churn, or give investors the false idea that there is good volume in the stock market when really it is a ghost town. This can be accomplished by churning just a few stocks, like Citibank and Bank of America. Churning stocks is like flipping houses. It distorts the value and affects supply and demand. When churning is a highly leveraged process, it is no different than the housing bubble.

More and more people are finding out about churn and are now realizing that this is the way Wall Street does business. Where they may have had a suspicion in the past, the theft of the program trading system of Goldman Sachs and the article in Rolling Stone Magazine exposing the history of Goldman Sachs is enlightening many people about the phony nature of Wall Street valuations. Usually the affect of such enlightenment is to make each bubble less sustainable with shortened time periods each time between boom and bust. 

 http://market-ticker.denninger.net/archives/1366-The-Lie-Of-High-Frequency-Trading-Liquidity.html

Unfortunately the credit system in the United States may have to go completely under for US citizens to gain control of their government again. It may be that we will have to massively deleverage ourselves, to the danger of our credit score management in order to take back our place in the world. It is necessary that we avoid banking with the big banks, ie Citibank, Bank of America, I have advocated walking away from all debt, including credit card debt at dontpaycreditcards.com. While this is a radical, almost anarchist position, it is a peaceful anarchy, a peaceful effort to quit cooperating with the New World Financial Order.

I tell you folks that if we don't do something we will be at the mercy of these big international bankers and their point man Goldman Sachs for years and years to come. They will make you pay what they want you to pay for gas. They will encourage crap loans like the liar loans that started our country on the road to even greater debt. They will take over our government and make decisions that are not in the best interest of the consumer of the US, the golden goose of world prosperity. Apparently these leaches think that they can do just about anything to the golden goose and he will not fail to spend and borrow.

But the consumer has been wounded and the banks are wounded. It is the best time to take on these banks and right your own financial ships. Links below go into more about what you can do to recover and become independed of this world financial order.

It is likely that Goldman Sachs played a key roll in deepening the credit crisis by working with the Federal Reserve Bank to allow their competition, Lehman Brothers, to fail. They bet on that failure. Goldman also was instrumental in getting the government of the United States to take over AIG. That allowed Liddy to make full payment to counterparties with taxpayer money including, of course, Goldman Sachs.

The government didn't even try to settle the issue, and bargain with Goldman Sachs for a partial payment from AIG which was, by then controlled by the government. Goldman Sachs should pay a lot of this money back. They should pay the subsidies back that they are using to make obscene profits and pay over 300 THOUSAND dollars per employee at the end of the year. The US government is subsidizing this behavior and it is so wrong. The real economy needs this help.

With regard to Lehman Brothers, a guy was on Maria Bartiromo's Closing Bell on July 20, 2009 who said that the bankruptcy of Lehman cost millions of jobs worldwide. Something to think about when we think about Henry Paulson, that weekend when they let Lehman go under, and when we think about how Goldman just lost one more competitor which could allow them to manipulate markets even more completely. If you are the leveraged monopolist there is just a lot of mischief you can do. Again, something to ponder.

While these folks and Goldman Sachs are innocent until proven guilty in a court of law, I hear a lot of quacking so there may be a duck here:

Gary Gensler (CFTC Chairman. GS has an exemption, obtained in 1991, that allows it to trade as if it were a farmer or an oil company. Gensler is head of enforcement of the rules, but he is a Goldman Sachs man. How very convenient! As the Obama administration seeks to stop this exemption [as it allows trading and market manipulation all across the board in all commodities], Goldman Sachs will no doubt fight this with the Alum in high places. These people are steallng food out of the mouths of children and money out of the driving public's pocket.)

Rahm Emmanuel (President Obama's Chief of Staff)

John Thain (Merrill Lynch)

Henry Paulson (Treasury Secretary under the Chimp, George Bush)

Robert Rubin (Treasury Secretary and Citibank Board)

Robert Steel (Wachovia)

Josh Bolton (Bush Chief of Staff)

Ed Liddy (AIG)

Mark Patterson (Obama Treasury Chief of Staff)

Jim Cramer (TV personality who has appeared to pump stocks that fell. He also may have been involved in the bad mouthing of Overstock.com and Dendrion right when Goldman Sachs and naked shorts were shorting the stocks. Seems like I remember him being unmerciful to Overstock as well as to Dendrion. Hmmm.)

While Cramer is not directly involved in the big time crimes of the credit crisis meltdown, he had admitted to spreading rumors with his hedge fund, and no doubt his friends made money as he pumped and dumped stocks on his TV show. All perfectly legal and completely immoral because average people lost a lot of money in this game. Cramer operates in similar fashion to Goldman, spreading "news" on stocks that either cause the stocks to go up or down, with profits accordingly. Wall Street "analysts" generally are in their positions to make money for astute traders. Cramer apparently does both! http://www.usatoday.com/money/markets/2007-03-23-cramer-usat_N.htm

Pete Najarian and Jon Najarian are here not because of any specific issues they have been caught doing but because CNBC's biggest programs have Goldman people. This shows to me that CNBC cannot in any way be trusted to bring financial news in a fair and unbiased manner. It is the steady stream of opinions and pumpers that clouds any "accuracy" that they may have regarding straight business news.

quarterly p/e data from S&P's website

12/31/1988 11.69
03/31/1989 11.81
06/30/1989 12.61
09/30/1989 14.74
12/31/1989 15.45
03/31/1990 15.69
06/30/1990 16.84
09/30/1990 14.08
12/31/1990 15.47
03/31/1991 17.92
06/30/1991 19.12
09/30/1991 21.77
12/31/1991 26.12
03/31/1992 24.93
06/30/1992 23.94
09/30/1992 23.16
12/31/1992 22.82
03/31/1993 22.77
06/30/1993 23.31
09/30/1993 22.49
12/31/1993 21.31
03/31/1994 19.63
06/30/1994 17.63
09/30/1994 16.93
12/31/1994 15.01
03/31/1995 15.38
06/30/1995 15.82
09/30/1995 16.61
12/31/1995 18.14
03/31/1996 18.96
06/30/1996 19.21
09/30/1996 19.09
12/31/1996 19.13
03/31/1997 18.82
06/30/1997 21.83
09/30/1997 23.31
12/31/1997 24.43
03/31/1998 27.86
06/30/1998 29.10
09/30/1998 26.70
12/31/1998 32.60
03/31/1999 33.52
06/30/1999 33.46
09/30/1999 29.18
12/31/1999 30.50
03/31/2000 29.41
06/30/2000 28.02
09/30/2000 26.75
12/31/2000 26.41
03/31/2001 25.54
06/30/2001 33.28
09/30/2001 36.77
12/31/2001 46.50
03/31/2002 46.45
06/30/2002 37.02
09/30/2002 27.14
12/31/2002 31.89
03/31/2003 27.97
06/30/2003 28.21
09/30/2003 25.82
12/31/2003 22.81
03/31/2004 21.66
06/30/2004 20.32
09/30/2004 19.29
12/31/2004 20.70
03/31/2005 19.57
06/30/2005 18.80
09/30/2005 18.46
12/31/2005 17.85
03/31/2006 17.82
06/30/2006 17.05
09/30/2006 17.00
12/31/2006 17.40
03/31/2007 17.09
06/30/2007 17.70
09/30/2007 19.42
12/31/2007 22.19
03/31/2008 21.90
06/30/2008 24.92
09/30/2008 25.38
average 22.69

12/31/2008 60.70
03/31/2009 116.31