And now Dennis Gartman today gets his chance to weigh in on the Goldman Sachs SEC charges and as expected, his opinion deviates from the so-called “norm.”
Rather than commenting on who’s wrong and who’s right, the discussion instead focuses on the long-term effects that this suit will have on the economy. There is “never just one cockroach”
he notes, suggesting there will be more legal problems for Goldman Sachs in the near-future.
Other points include:
- Foreign government’s like Britain’s FSA will no doubt tear into Goldman in the coming months.
- Goldman will survive but will emerge a smaller entity from all of this.
- Fabulous Fabrice will be tossed under the bus along with other top-level management and the “exotic MBS” group will be dissolved.
- The Justice Department understood that a civil case would hold up better in court.
- The Goldman ordeal has the currency markets acting weird to the point that it has perplexed investors.
- The strong move in Goldman makes little sense.
- The public loves the story and it will stay in the news for months to come. Democrats will use it to their advantage to push financial reform through for Obama.
- Long term implications for both the global and US economy will be “small at worst.”
Ultimately, “the game” for Goldman Sachs has changed as it moves into 2010, ending an era of financial alchemy. The piece closes with the quote “Goldman of the future will not be the Goldman of the past. Of that much we are certain.”
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