Did you catch the OpEd in the New York Times this morning? If not here it is...
Why I Am Leaving Goldman Sachs
What most people are focusing on are these passages:
"I can honestly say that the environment now is as toxic and destructive as I have ever seen it."
"Execute on the firm's "axes," which is Goldman-speak for persuading your clients to invest in the stocks or other products that we are trying to get rid of because they are not seen as having a lot of potential profit."
"Over the last 12 months I have seen five different managing directors refer to their own clients as "muppets," sometimes over internal e-mail."
All of these are important revelations to hit the mainstream press but nothing that we didn't know.
What is VERY important about this article is the person who is quitting - Greg Smith.
"Greg Smith is resigning today as a Goldman Sachs executive director and head of the firm's United States equity derivatives business in Europe, the Middle East and Africa."
Holy Cow Batman! It's the HEAD of European Derivatives for one of the biggest CDS players in the world, Goldman Sachs! He's running for the hills just days before the settlement of the largest CDS payout in the history of the industry!
Lay this fact on top of the retirement of the CEO of the CME and the removal of the CME as a European Derivative Clearing Organization and you have one toxic brew.
Lay this fact on top of the retirement of the CEO of the CME and the removal of the CME as a European Derivative Clearing Organization and you have one toxic brew.
I've been doing some research into the settlement process of CDS's for the Friday Road Trip and from what I can surmise they call it the "Big Bang Protocol" for a reason! What a Cluster #!@*! When the DTCC came out and said this was only a $3.2B issue they totally left out all the Greek CDS's that are not purchased to cover any specific bond investments...which is most of the Greek CDS market!
More in the Road Trip.
On a lighter note, Tamz has recorded another one of my articles and it is appropriately timed...
Melt The Witch
If you've been waiting to buy silver on the dip - now would be a good time. When the Greek CDS market blows you can kiss the manipulation game goodbye! Then again you can kiss almost EVERYTHING goodbye.
May the Road you choose be the Right Road.
Bix