Ironically, Goldman's biggest problem, isn't a lack of cash, but rather where to "stash" or "keep quiet" all that cash they made last year, crashing the stock and oil markets. It is way to early to realize these profits. Besides the "usual suspects" like The Caryle Group, Barclays, Black Rock, PIMPCO and many other "Partnerships" world wide; where else are they "parking" the bloody cash? They have obviously issued the opinion, at least privately, "It's OK to buy our stock now." We are in the clear now. Hank Paulson's mission accomplished - without incident.
That notion should of been "crystal clear"when Warren Buffet piled in with a 5 billion dollar bet on Goldman Sachs last year. But for Warren Buffet to say "derivatives are weapons of mass destruction" a few years ago, to him forking over 5 billion dollars to GS, just 6 months ago, deserves some attention. Something definitely changed his mind. I will be exploring several scenarios in this essay as to what that something could be.
Thanks to my buddy Reggie, at BoomBustBlog.com, I was able to find the answer, to my question above, as to where Goldman is parking all that cash. Fucking Real Estate? Can you believe It? As this article shows, Goldman Sachs is "going long and heavy" into real estate, mostly "junk" rated or Sub prime. The same stuff that they made billions dumping in 2007, they are now buying! The same stuff that "supposedly" started this crisis, they are snatching up? It doesn't make any sense? Or does it.......
Maybe Goldman Sachs has "inside" information, that hyper-inflation (1920's German style), is a couple of quarters away, and there is no better place to park your cash than real estate. "Inside Information" is so passe. What is it called when you actually "create the circumstances" that lead to "economic events," that makes your knowledge of the situation look like a brillant insider?" I call it Self-Actualizing-Information . Way better than "inside" information. Self-Actualizing-Information becomes reality as the future becomes the present. It doesn't get any better than that; it's like looking into a "crystal ball" according to Paulson.
When you have certain individuals rotate through government institutions like the Treasury, the NY Fed, the FED and back into/out of Goldman Sachs CEO position, for decades now; one thing is very "crystal clear." These individuals doing this rotation probably have the best fucking information in the world, weather it's "inside" or "self-actualizing" as to the state of the economy, and the markets that are/are not being manipulated. So, if hyper-inflation is just around the corner because of the recent actions of the Treasury and the FED; Goldman Sachs would be the first to know about it, and trade on that information. A long list of individuals making this rotation described above is beyond the scope of this essay.
OR maybe Goldman sees a very profitable opportunity in buying up or back all the mortgage-backed-paper that they hammered last year. After they convinced us how toxic, this paper is, they are snatching it up! Maybe they know real estate will bottom out this year. Or maybe they know hyper-inflation is around the corner because of the actions of the men revolving through the doors of the FED, the Treasury and Goldman Sachs. One thing is clear. Goldman Sachs wants your home. Maybe it's even more profitable for them, if you are NOT in the home.
Speaking of commodities, it looks like Goldman is at it again hyping the oil market with it's new oil predictions for the year, but we won't be fooled this time. In fact this time I will demonstrate how even the "Drudge Report" was "in" on hyping the oil market last year for some bankers and the oil cartel. I will also be revisiting the homicide of Semgroup last year because it's a perfect example of the Goldman Sachs play book. But first lets get intimate with the "Drudge Report."
The "Drudge Report" behind the biggest oil hype of the century
Type in the word "OIL" inside the "Drudge Report" search engine. It returns 1,965 headlines with the word "OIL." Over the last couple years, The Drudge Report has ran 1,965 headlines with the word "OIL." Most of these articles were hosted by the worthless organizations of Yahoo, Breibart, APNews, and Reuters. The Drudge Report just creates the headline, and links it the article hosted by who ever is doing the "hyping."
Search on the word "credit crisis" and you only get 12 archived headlines. The word "bailout" yields only 268. The word "bank" returns only 568. So you have the Drudge Report hyping the oil market, because they bring it up almost 2000 times. Unlike the "credit crisis" or "Wall Street Bailout" that actual did happen, the oil market and what did/didn't happen between Israel/Iran is plugged 10 times more!
Of all the 1,965 articles that the Drudge Report ran with the word "OIL" in the title, most were hyping the oil market. The most notorious cases, a few times a week, were hosted by Yahoo, Breibart, and AP News. Most of these articles were plugged with the same paragraph that stated if "Israel were to attack Iran, Iran would retaliate by taking over the straits of Hormuz, the largest pathway for oil and we all know what that would do to the price of oil.
Beside the usual "oil went up because the falling dollar" OR "Oil went up because rising Asian demand, these articles were constantly hyping the idea that Israel would soon attack Iran over their nuclear ambitions. Many of us oil traders were long oil because of the geopolitical risk to the oil market with the US engaged in war in Iraq. That risk never materialized, but it was just media hype. Oil got up to $147 in July in 2008, over a $80 gain for the year, before plummeting back down to $40. Why would the "Drudge Report" be hyping the oil market? For whom?
Each time that oil climbed to a new high, over 75 times last year, the Drudge Report was there backing it up with hyped up articles about the standoff between Israel and Iran. The UN Inspectors and deadlines that came and went. The terrorists blowing up pipelines. The pirates hijacking ships of crude oil. Not to mention the idea of "Peak Oil" and the usual pathetic excuses of the "dollar is falling" and the Chinese are driving more!
But once oil started its tumble from a high of $147, rigth around July 4th, the articles featured in the Drudge Report were more focused on that demand would be decreasing because of the economy, the increasing dollar, and the credit crisis. The oil market no longer was spooked by tensions in the middle east, terrorists and pirates hijacking tankers. All that hype came and went. Maybe this year, the war will start, probably since GS issued their bullish opinion on oil. One thing is for sure. When Israel drops the bombs on Iran, Goldman Sachs will be the first to know about it, except for George Soros.
The Drudge Report also, poorly reports on Wall Street. Many articles that I read in October and November, during the crash, have been pulled from the archives. And so few articles to speak of to cover the biggest finacial meltdown since the Great Depression. In fact one article from the Washington Post, critical of Geithner, was pulled withen 15 minutes! So here are the results from searching the Drudge Report for Wall St stories. Wall Street = 256 , Paulson = 34, Geithner = 45, Summers = 13, Rubin = 41, Greenspan = 145, Goldman Sachs = only 15 Banks = 295, Yet the word "OIL " nets 1,965 headlines. Obama = 5,164 !! Of course. It was Wall Street that picked Obama's cabnet for him, and gave him millions to make sure he got elected.
It is obvious that the oil market was hyped and manipulated last year and probably for many years now. Besides the usual oil cartel doing the manipulation of the market by "storing" oil in off shore tankers, and trading futures, I believe Goldman Sachs was also part of the manipulation process. Goldman's forecast for oil was $200 last year, yet it peaked only at $147. At the end, the NY Mercantile was offering 300 and 400 strike price calls for Dec of 2008! Did anyone really believe that oil would get to $400 by December when it was July?? Come on already!! And of course they had the old $40 call option still listed because that's what the price was a year ago. Is the market place that unpredictable that we need option strike prices from $4o to $400?? Even with futures contracts(that supposedly reduce volatility) , we have a range of $40 to $400! The fact is Goldman makes more money, the MORE volitile a market is.
The oil market peaked around July 4th. It is, as if, that date, America's Independence, was picked by the insiders "to pop" the bubble in oil. The "insiders" didn't have to know how high it was going to go. They just needed to know to sell after July 4th. All the drunken fools that stumbled out of the last Bilderberg meeting just had to remember to sell oil on America's Independence Day.
Supposedly, T Boon Pickins, oil billionaire lost billions as oil tanked. I don't understand why, because his predictions on CNBC were the most accurate. He said said it would peak around $150 and then fall off from there. He was constantly defended his supply/demand arguments for the fundamentals driving the oil market, which I disagree with. So, why with that correct projection did he lose billions? Maybe he learned the hard way, that you either bet with Goldman, or you bet against Goldman. See, Mr. Boon Pickins, it is actually the supply/demand of the futures contracts that is driving the price of oil, not the supply/demand of the actual oil. Better luck this year.
Warren Buffet also lost billions in trading oil, I think. Then again, Warren Buffet probably learned the hard way that you either bet with Goldman or you are betting against Goldman. It would make sense after getting his ass kicked in the oil market, he grabs his check book and cuts a check for 5 billion to the guys that just kicked his ass! Paulson probably showed Buffet his "bail out" plan involving the US government, months before Warren decided to cut a check for 5 Billion dollars. (9 zeros)
Ego maniac, George Soros doesn't even mention the oil market in his last book "The Credit Crisis" that came out last March, 3 months before the oil market tanked. I have a feeling Soros banked on the oil trade, and that's why it wasn't mentioned. He did , accurately predict in his book that the stock market would crash. I have been a big fan of Soros and his his theory of "reflexivity" from the beginning. The oil market is a perfect example of how his theory of "reflexivity" works in the real world. Except it is media hype that drives the "bias" and "misperceptions" of the investor.
While it is Goldman's job to issue bullish opinions on oil and build a large position in oil, it is the oil cartel's job to hide oil in off shore tankers, and then sell forward all the oil, with futures contracts, locking in the high price. Oil companies could care less that oil fell $100 last year. They have sold forward all their oil at the high price. Oil is rising again and the cycle starts again. So Goldman is at it again, issuing an opinion that oil will climb to $85 by years end and they specifically state which call options you should buy. Let's see, oil climbed to $150 last year, when GS predicted "publicly" it would go to $200. They pivoted the market $5o below there projection. So, this year I predict that they will try the same toomfoolery. If they say $85, then it will really be at $130 (add $50) by the end of the year. Don't get caugth up in any options trading!
The reason I think that Goldman is the bank that is involved in the manipulation of the oil market, is because they have taken BP public, and have been advising them ever since. Goldman knows the oil business inside and out from having taken BP public. Then you have Goldman operating through J Aron and Riverstone to corner the market. The oil markets have always been manipulated by the oil companies, but more recently, Wall Street banks have gotten in on the action.
Semgroup was one of the biggest players in the oil market last year until they failed to meet a 2 billion margin call, and were forced into bankrupcty. The word in Forbes magazine, is that Goldman Sachs approached Semgroup about making them a loan to cover their margin call. After looking at the "books" of SemGroup, Goldman changed their mind and backed out. That day oil would trade $5 higher on no news at all to $133. Then the next day it would trade 10$ higher to $143.
Goldman Sachs saw Semgroup's book of trades, and then ran the market up, through J Aron. Some of migth remember last August oil would spike up $25 in one day! That was SemGroup being forced to cover their short position. The next couple of days oil would fall by at least that amount. The sweet irony here is that SemGroup shorted oil around $100, and lost billions because oil climbed to $147. But within 6 months oil tumbles to $40. Semgroup would of made billions if Goldman hadn't of gunned the market to force a margin call on Semgroup.
No market manipulation going on here. It's all supply and demand you know. The Chinese are driving more, and the Americans are driving less, the dollar is falling, or the dollar is rising. One thing is for sure, is that there is never a shortage of excuses in the media as to why oil did what it did that day. Since when did oil become a hedge against the dollar? I thought the purpose of these contracts was to pass risk from the producer of oil to the speculators.
The oil market is the easiest market in the world to manipulate. Partly because most of the oil, is not traded at the regulated exchange of the NY Mercantile. In fact, much of the speculative oil trading is done through the Intercontinental Commodity Exchange (ICE), headquartered in Atlanta, and under the jurisdiction of the British Financial Services Authority (This is no joke)With players, and exchanges all around the world, makes it hard to regulate or prove that it is being manipulated even though it is so obvious.
Investigative Reporter,
Patrick the PAINTER
The Predicted Price of Gold when President Obama leaves office
$
Denver, CO The Mile High City
(goldman sachs conspiracy) (goldman sachs conspiracy)(goldman sachs conspiracy)(goldman sachs conspiracy)(goldman sachs conspiracy)(goldman sachs conspiracy)(goldman sachs conspiracy)
and than sum...
Posts
