Goldman to lay off and invest in SIV

In hot and cold signals, GS is giving the tone of the day:

1/ They are laying off massively. The street is expecting a 30% drop in earning, (60 for lehman) so they are hacking ahead of the bell

2/ They are closing on a $8B stressed SIV investment which is heralded by some (the FT) as a "turning point" in the current crisis. Wait... wasn't it the Bear salvation?

Buckle your belt Dorothy, cash is the place to be!

Comments

aarone said…
only if you think the dollar can't drop anymore. When Fannie Mae owns half the houses in your neighborhood how do you think they'll move inventory? Same deal with the Treasury owning half the stocks in your portfolio. Their bosses don't want high interest rates and low returns on their 401k, they want bread and circuses.

Cash would've been king if the market actually would fall, but the government (of, for, by, etc.) won't let it fall.

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