Tuesday, April 27, 2010

Goldman Sachs -- Creative Suicide Next?

Goldman Sachs (GS) got a political beating today. The politicians know when to kick Wall Street and get votes from Main Street. Goldman clearly does not know how to manage image or public relations. The vilification is instant and causes even the most loyal client to pause for thought. Many would think Goldman is upping the life boat drills.

The issues will be vexatious and absorb much valuable time at Goldman which could be better used in making money.

So why stay on a slow or stopped boat. There are probably lots of individuals considering non Goldman career options. Goldman will want to re-invent itself and get back to Wall Street.

Go to the Fed Reserve and just give them the keys. Here you go it’s yours. The Senate has prejudiced our life. We’re outta here. Then you walk down the street, find some office space this time in Manhattan and start over.

Creative suicide intersects with structured finance.

Leave behind the political issues and start fresh. If the Federales disapprove how Goldman conducts itself then they can take it over. Goldman will have to engineer the financial structure of the century through a pre-negotiated bankruptcy. This will blow off the liabilities and force them into the Fed’s hands. The American tax payer suffers yet again.

Someone will pay. Someone will hang.

Disclosure: No position in this stock