Monday, April 26, 2010

Things you don't want to hear analysts say

When we all heard that Goldman-Sachs was being sued by the SEC for purposely selling bad products to its customers and betting against them, the reaction was mixed: we couldn't decide whether to laugh, pump our fists, high five the nearest bystander, yell "'bout fuckin' time", or just prepare for the inevitable disappointment when nothing of any importance happens to them as a consequence. We chose instead to wait outside Matt Taibbi's house for what we assumed would be one of the most exultant and joyous celebration keggers in recent memory.

Of course the SEC lawsuit caused them a hit in their stock price. Alleging massive fraud tends to do that. But not to worry, our financial betters see rosy clouds on the horizon and decided to state it in the most naked way possible:
Analysts Bullish On Goldman's Stock, Citing Political Relationships
Doesn't that headline just warm the cockles of your heart? Why does Fitch Ratings give Goldman an "A+" rating, FBR Capital Markets give a "Outperform" rating, Bernstein Research note that the bank's long-term potential remains "attractive", and Rochdale Securities said the stock is still worth buying? Why, because of how well Goldman has entwined itself within the levers of power and among our elected betters. Something about a vampire squid wrapping itself around something, jamming its blood funnel into something.

So don't shed a tear for Goldman Sachs. No, they'll make out all right. Little things like SEC lawsuits that say you engaged in a conspiracy to defraud your own customers don't matter, you're still a good buy. Why? Because you used all that money you sucked out of the corpse of this country to buy some powerful BFF's. Well done. In fact, buy their stock. It's probably the only surefire way to get your money back after you listened to their investment advice.

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