wndysrf Posted March 14, 2007 Report Share Posted March 14, 2007 Anybody wonder why GS is by far the strongest man in the XBD? No doubt, they have the script from The Matrix, and are able to trade accordingly. Furthermore, they are able to use their vast profits and limitless borrowing power to pick stuff up on the cheap when nobody wants it. Now they are combing over the mortgage companies, picking up skeletons for pennies on the dollar. Obviously, they will be pre-packaging these up, dressing them up with lipstick, and then selling them for a vast profit. Imagine buying 10 mortgage companies for 5 cents on the dollar just for the infrastructure. Desks, chairs, computers, staff, and loan agents for practically nothing. Then they will buy up all these underwater loans, park them someplace, then sell them after the Weimar Inflation reduces the LTV's to under 50% 5 years from now. How easy is that? Excerpts from today's WSJ Goldman Goes Hunting In Battered Loan Sector After a Record Quarter By KATE KELLY Seeing growing turmoil in the market for risky home loans as an opportunity, Goldman Sachs Group Inc. is looking at pushing deeper into the business, ramping up its own subprime-lending operation and pondering the purchase of another. On the heels of reporting record and expectation-smashing fiscal first-quarter profits that kicked off Wall Street's earning season, Goldman Chief Financial Officer David Viniar indicated that the brokerage is perusing the subprime sector for fire-sale prices. Goldman isn't alone in hoping to profit from the recent fallout. Wall Street firms already have fingers in almost every corner of the market, bankrolling subprime lenders with credit, packaging and selling bonds backed by their loans and operating their own retail subprime shops. Some firms have reduced their risks by cutting off troubled lenders' credit, pushing some to the brink of insolvency -- and creating potentially low sale prices for firms like Goldman, which are willing to wager that the market will rebound. For now, Goldman is a relatively small subprime player compared with rivals Lehman Brothers Holdings Inc. and Bear Stearns Cos., which both are slated to release first-quarter earnings this week and which also are eyeing more opportunities in this sector. Goldman's move to step up its involvement in the subprime sector isn't surprising, according to Merrill Lynch & Co. research anal cyst Guy Moszkowski. The current turmoil is "exactly the kind of dislocation" brokers look for, he said. Link to comment Share on other sites More sharing options...
crazy_ate Posted March 14, 2007 Report Share Posted March 14, 2007 Something tells me the next two days (Thur / Fri) will wipe out billions in value on April '07 putz... Link to comment Share on other sites More sharing options...
mmoy Posted March 14, 2007 Report Share Posted March 14, 2007 Friends don't let friends trade on scam week. That said, some interesting action at the close or after the close. CEF jumped 20 cents. MSFT at HOD. XOM at HOD. APA at HOD. Intel and GS didn't get very far but at least GS was green. I don't know where things are going for the rest of the week but I was tempted to short the close given the rather large repos expiring tomorrow. The amount sloshing around is already pretty high. Will Uncle Ben jam it higher? Doesn't seem likely but I'll be watching in the morning. I see that the index ETFs are hitting HODs AH now. Qs back to $43. Link to comment Share on other sites More sharing options...
I_Am_Madness Posted March 14, 2007 Report Share Posted March 14, 2007 Something tells me the next two days (Thur / Fri) will wipe out billions in underlying value on recently purchased PUTz .... 567831[/snapback] And put millions of calls purchased today deep into the money. Link to comment Share on other sites More sharing options...
elh Posted March 14, 2007 Report Share Posted March 14, 2007 Something tells me the next two days (Thur / Fri) will wipe out billions in value on April '07 putz... 567831[/snapback] That's okay as long as you didn't buy any new Mar and possibly Apr puts recently. Link to comment Share on other sites More sharing options...
cwd Posted March 14, 2007 Report Share Posted March 14, 2007 Something tells me the next two days (Thur / Fri) will wipe out billions in underlying value on recently purchased PUTz .... 567831[/snapback] And put millions of calls purchased today deep into the money. 567835[/snapback] How about they flatline it for a couple of days. Link to comment Share on other sites More sharing options...
Sudaca Posted March 14, 2007 Report Share Posted March 14, 2007 I had a dream today... Roger sang to me: Link to comment Share on other sites More sharing options...
I_Am_Madness Posted March 14, 2007 Report Share Posted March 14, 2007 Volume looks huge for the day. Link to comment Share on other sites More sharing options...
wndysrf Posted March 14, 2007 Author Report Share Posted March 14, 2007 Let's review.... Useless Trivia Link to comment Share on other sites More sharing options...
shorty Posted March 14, 2007 Report Share Posted March 14, 2007 Let's review.... Useless Trivia 567840[/snapback] looks like whenever bullz start selling puts like crazy the market goes up Link to comment Share on other sites More sharing options...
LeeWhee Posted March 14, 2007 Report Share Posted March 14, 2007 I'll always remember one of WNDY's mantras....."don't trade options expiration week".....seems like sound advice, lest ye get whipsawed... .....at least I think it was WNDY that wrote it..... 567824[/snapback] Actually, I believe it was Aristotle. Either that or Shecky Greene. Link to comment Share on other sites More sharing options...
LeeWhee Posted March 14, 2007 Report Share Posted March 14, 2007 Sweet 23-pt reversal on the Spooz today. I think the last time we saw that was right after the Battle of Hastings. Link to comment Share on other sites More sharing options...
elh Posted March 14, 2007 Report Share Posted March 14, 2007 But I thought you said this was useless trivia? Link to comment Share on other sites More sharing options...
shorty Posted March 14, 2007 Report Share Posted March 14, 2007 Senate Weighs Aid to 2.2 Million Subprime Borrowers Senate Banking CONmittee Chairperson Christopher Dudd said today, "The government needs to provide at-risk homoaners "forbearance or something like that to give them a chance." That's what's great about this country.......taxing the prudent and productive, to reward the reckless and wasteful. That way the bottom 99% are all kept down together. Anyone who tries to work their way up gets raped and slapped back down. The top 1% CONtinue to Lord over the maSSes. If need be, bring in a few more tens of millions of guest workers. Just make sure there is no middle claSS. Keep 'em all down and dependent on the government. Link to comment Share on other sites More sharing options...
Bungster Posted March 14, 2007 Report Share Posted March 14, 2007 Remember Bank of America? Those were the boys that wanted to give illegal aliens $500 limit credit cards so they could start a credit history and buy homes etc.? Well, they are at it again! http://www.edn.com/article/CA6424484.html?...19&rid=40816004 Banc of America fined $26M for errors that led to fraudulent reports on Intel The Securities and Exchange Commission (SEC) announced today a settled enforcement action against Banc of America Securities LLC (BAS) for "failing to safeguard" its forthcoming research reports, including anal cyst upgrades and downgrades, and for issuing fraudulent research. The transgressions compromised the integrity of the Wall Street firm's anal cysts, the SEC said, which led to "false and misleading" reports on companies including chip giant Intel Corp. Link to comment Share on other sites More sharing options...
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