Quote from bit:
Some people may indeed lose their jobs (afterall, we are entering what the talking heads at CNBC now call a 'deep recession') but do any of us really believe that the bailout will prevent that?
Geez, does anyone really wanna be the other side of this trade with Goldman Sachs? That's what it is. GS is selling, we're buying, and the pit local is Hank. GS has just been too good of late for me to believe I'll profit. Exhibits 1-3:
Last summer, GS's HF customers are levered long mortgage backed paper, quant style, even as its proprietary desk is short similar paper. Guess who bagged the billions?
AIG is backstopped, 85 large, fileting shareholders with onerous terms, but saving 20 billion GS chestnuts counterpartied to AIG. Many others also aided that way, too of course.
GS switches status 10 days ago to position for this bonanza. All that's missing is the 700b to fund my, yours, all of ours account, then weee! we're buying mort backed securities.