Ander's Market Theories

[AnderL]

XLF at 10? Thats a pretty bad day. I don't trust GS to have a bad day. Those guys are cutthroat and I can imagine any number of ways they will make sure that they do not "report" a bad day. They are a mixed bag too. They are not directly affected by the credit crunch. They only made "recommendations" to buy CDOs. They are also doing well making these markets, as volume and volatility picks up they profit more off each transaction. But there is the problem of dried up liquidity as more and more institutions are plagues with credit problems there is less money going around. Their last 10k reports that much

If GS does get hurt over the next year, and they might with the restrictions of short selling and with the lock downs they are going to put on commodity trading, they will put a wrench in GSs currently profitable arms. That will create the impression that there is no safe harbor in financials and might create another "selling event".