Goldman Sachs (GS) has been stressing that they are doing great and they don't have any huge write-downs to report. It's very difficult for me to believe this. When all these financial institutions are reporting nightmarish write-downs, how can everything be hunky-dory with GS? The worse part is that investors actually believe that and GS was up as much as $221 today, finally settling down to $214.71 (up by 1.6%).
So what is going to happen when GS reports their earnings sometime in December? What if they come out and say, 'Oops! We made a calculation error'. Is the market prepared for the worse? If GS does come out with bad news, it will crash the market again.
These big financial institutions really need to get their act together and come out with all the bad news they have to report. What's happening right now is not good for the economy. Everyday some institution comes out and reports big write-downs and the market goes in a frenzy. Look at what happened with E*Trade today. It is down 60% today after reporting worse write-downs in the fourth quarter. To make matters worse, Citigroup analyst said that E*Trade might go bankrupt.
If these financial institutions come out and give us a clear picture, it will be good for the market and the economy in the long run. The investors need to know the truth. Also, these institutions need to get together and come up with a long term solution to protect the economy, investors and the consumer. Hopefully, the Merrill Lynch Banking and Financial Services Investor Conference on November 13th will bring out some positives.
So what is going to happen when GS reports their earnings sometime in December? What if they come out and say, 'Oops! We made a calculation error'. Is the market prepared for the worse? If GS does come out with bad news, it will crash the market again.
These big financial institutions really need to get their act together and come out with all the bad news they have to report. What's happening right now is not good for the economy. Everyday some institution comes out and reports big write-downs and the market goes in a frenzy. Look at what happened with E*Trade today. It is down 60% today after reporting worse write-downs in the fourth quarter. To make matters worse, Citigroup analyst said that E*Trade might go bankrupt.
If these financial institutions come out and give us a clear picture, it will be good for the market and the economy in the long run. The investors need to know the truth. Also, these institutions need to get together and come up with a long term solution to protect the economy, investors and the consumer. Hopefully, the Merrill Lynch Banking and Financial Services Investor Conference on November 13th will bring out some positives.
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