Goldmans Hit

If nice guys finish last, then Goldman Sachs will beat the wolf pack of the banking group again, but not by as much this time around. The scam is running out of steam even for the Godfather of corporate vice and public corruption. Last year Goldman walked on water when largely avoided the subprime mess that took the rest of the street down hard. They floated in bad guy thin air when it was learned that they shorted the very issues they were selling to clients. But still they stand to take a hit if monoliners go under, so what does that say about the monoliners? They won't go under. Forget smart guys like Nouriel Roubini and Paul Krugman, a construction worker thinks like this. Goldman's on the line for the monoliners and CEO Treasury Secretary Paulson is leading the bailout blitz, fuget about it. And don't think the gangsters weren't already long at 3 pm last Friday just before they threw Ambac a lifeline. So go long the monoliners.

After 10 quarters of year over year higher earnings the gangster will have to settle its smallest quarterly profit in three years. It will have to look over its shoulder for the $42 billion to leveraged loans for the LBO binge it went on last year. It could get hit by some of its large take overs. The tumbling Industrial & Commercial Bank of China comes to mind. And any of the assorted subprime problems could blow up on it, but it could take a $4 Billion big hit and walk away.

Goldman won't take a big hit, but it wont make that many of them either. It is not that the gangster is not stealing as much, it is that there is not as much to take.