Sense on Cents

GO LD! Pretty soon you are going to have to get yourself an agent!!

Interesting comment regarding reputational risk. I think you are right on in the sense, why would I buy a product from some one who will then short it. As has been mentioned else where, the money is in the shorting and one would have to ask – another form of ponzi scheme? This shows up in other ways. I was to my bank to discuss a maturing CD and they brought up a package from JP Morgan. I chose not to participate, because I do not trust these people. Regarding Goldman Capital – I think they got scared in the last crisis. Recall that Blankfein sad he was hours behind Morgan Stanly if they defaulted.

Think the moderator was looking for more corroboration that there was something that wasn’t quite right with the Goldman behavior..when you touched on reputational risk, then the senses seemed heightened..We all know people on Wall St who are considered very smart and “good” salesmen – the problem, though, is their MO is to sell something “rich” whether in price or terms just once to each customer, upon which the customer really knows he has been had..on the institutional front, this tends to be a zero sum game – if GS is winning, trust me, someone is losing – that person can only be the client or, as we have sadly learned, the taxpayer..nice job, LD..what’s next? It’s kind of fun to watch your reputation and presence grow little by little!