Goldman Scams

The Wall Street Journal is asking "Goldman Sachs Quant Code Case: How Big a Deal Is It?" The short answer is not a very big deal at all. Why? Let me count the ways, but where do I begin.

First it's Goldman Sachs so they will get away with what ever it is. Just look at how its former CEO behaved when on loan to the United States treasury. Hank Paulson admitted to bullying Bank of America CEO Ken Lewis into swallowing the regurgitated mess of what had been before the credit crisis, Merrill Lynch. He has admitted to market manipulation on his skill at Martha Stewart never dreamed but he is free to walk the streets and respected member of society. I don't really need to go into this do I? So you know it will not be a big deal.

Second whatever super quant gizmo software is supposed to be jeopardized you can be sure that there's nothing to it. Remember the highly publicized fully disgraced Quant space of nano second black box trading algorithms that could take advantage of any market under all conditions. We see how far that got the quant funds.

The platform is one of the things that gives Goldman an advantage over the competition when it comes to the rapid-fire trading of stocks and commodities. Federal authorities say the platform quickly processes rapid developments in the markets and, using secret mathematical formulas, allows the firm to make highly profitable automated trades.

See what I mean, sounds just like the hype that got a lot of people throw a lot of money at the quant funds to begin with, that cash has now disappeared into the black box only to reappear in the managers bank accounts. The fact that Federal authorities are now advertising Goldman Sachs is secret mathematical formulas just goes to show how in control Goldman Sachs really is.

The criminal case has the potential to shed a light on the inner workings of an important profit center for Goldman and other Wall Street firms. The charges also raise serious questions about the safeguards that Wall Street firms deploy to protect these costly-to-build proprietary trading systems.

The only important profit center for Goldman Sachs is insider connections bribes, intimidation and trading its partners position against its clients position. Guess whose positions come out better. Nor did the charges raise any questions about the safeguards Wall Street firms deploy to protect these costly to build proprietary trading systems. Before anyone goes reading what they think is Goldman Sachs's lost playbook they had better realize the only reason Goldman Sachs lost it is because they wanted you to find and play by it. Goldman Sachs neither plays nor fits the victim role well, it's a part they have in mind specifically for you.