Paulsen may not even be saving Goldman Sachs

[malaise]

so where is the bail out money?

http://www.bloomberg.com/apps/news?pid=20601087&sid=auj5LVDoDGSs&refer=home
<snip>
Goldman Sachs Group Inc. closed at its lowest price since the firm first sold shares for $53 apiece to the public in 1999, as the profit outlook darkens for a company that set a record for Wall Street earnings last year.

The stock fell $6.85, or 11 percent, to $55.18 in New York Stock Exchange composite trading, giving the company a market value of $26 billion. The New York-based firm's value reached a high of $105 billion, or $248 per share, on Oct. 31, 2007.

Goldman, which converted from the biggest U.S. securities firm into a bank holding company in September, dropped along with other bank and brokerage stocks including Morgan Stanley and Citigroup Inc. today as investors questioned how the industry can recover from more than $700 billion of writedowns and credit losses as economic growth slows.

``Investors are walking away from financial companies until they have a better idea of the earnings power of the entire sector,'' said David Killian, a portfolio manager at Valley Forge Advisors LLC in King of Prussia, Pennsylvania, which manages $490 million including Goldman shares. ``In order to have confidence to buy a stock you need confidence in the earnings.''

[KharmaTrain]

1. Check Paulsen's Mattress

The banks aren't stupid...they see all this money being handed out and all they care is to get their hands on it...not to spend it, not to lend it, but to horde it against future loses they are sure to come as this regime continues to mismanage this economic Katrina.

The same forces that drove the markets up is now in a deaththrow on the downside...the worse the economic conditions get, the tighter money gets, the tighter it gets the more those who have it either are trying to hold onto it or liquidating any risks, thus the need to horde more since those loses could continue to grow. Add to this a dead consumer market that used to fuel the market bubbles and where's the upside? And as the market sinks further, the harder it is to loosen the cash.

And one hidden fear...the courts. The lawsuits against these oompanies are starting to mount, investors aren't just restless, they want blood. The last thing a broker with a bunch of pitchforks outside the door is going to do is spend.

I'm not sure this economy or country can hang on until January...

:hi:

[malaise]

2. Sure looks like a major train wreck

Paulsen and Bush created this panic and I have no doubt that it was deliberate. The question is who has stolen the loot - and this gang is notorious. :hi: