Shorting means providing better and more efficient pricing to the market. I am all for it. Shorting a stock has little to do with bankrupting an otherwise good company.
How would you like it if the Fed following your ingenious advice and hiked rates in August of last year and 50% of all brokers would be illiquid and bankrupt today. Would the fact that you can't withdraw client funds from your broker make the situation any better? "Clearing out the system" yes?
To all the economy PHDs here on ET preaching rampant inflation... hows that inflation hedge trade doing? Long Sugar, Long Copper, Long Gas, Long Oil, Long Coffee, Long Cocoa, Long Cotton?
Getting nervous anyone? :p
I don't have inflation or deflation trades on. I am not a global macro trader. I simply trade price action, not ET BS panic and economic conspiracy theories.
S2007S, go look up some historical charts. Did 1974, 1980, 1982, 1990 always need a 15% down week to bottom out? Did the markets always need a $VIX > 40? I am not sure where this "capitulation is needed for a bottom" myth is coming from.
Not sure why you chose to concentrate (thread title) on Goldman Sachs when Whitney's note clearly mentions Citigroup, Merrill Lynch and UBS at to having a lot of exposure on their books. Care to elaborate?
I was wondering how the restaurant business was doing. I know of some remote acquaintances that made good money in IT, housing etc. in 2003/2004 and suddenly everybody owned a restaurant 'on the side', just like a hobby. It was hip to say "Oh yea, I also run a restaurant" to ones golfing...