Comments on: JPMorgan and Goldman Sachs Making Billions in Profits

By: Don

Don — Thu, 23 Jul 2009 05:22:32 +0000

There seems to be a correlation between flash bathrooms and questionable practices - Storm Financial in Townsville were bragging of their dunnies being all marble and gold and then squish like grape!

By: mike

mike — Wed, 22 Jul 2009 15:08:59 +0000

...it wouldn't surprise me to know that all the latrines in the mens' rooms at goldman sachs were 24k solid gold with a faux porcelain finish...those goldmans!!...they may put the taxpayers' money where their mouths are...but when push comes to shove...they know what a real money feels like...those goldmans!!...

By: Andrew S

Andrew S — Tue, 21 Jul 2009 07:49:35 +0000

Unfortunately, or is that fortunately, most people don’t get too far past the headlines. So they can be a more powerful tool that anything the gov or RBA can come up with. ‘How’ Goldman is making the money will not matter to most. Just that THEY ARE MAKING MONEY, so we will go and buy Goldman stock. Then when we are feeling good that our stock/s, Goldman / JP, are going up we might go and buy something at the shops…that wealth effect. And so the circle starts again. No matter that it is on a poor foundation, just as long as it starts! So while the Gov’ is bumbling around looking for the ‘answer’ it may have already started…this might buy the US gov’ some time to think. Maybe they will realise that the only answer is to sell Alaska to the Chinese…who knows the US may then be in surplus. Australia has been doing this for years, piece by little piece, why not a big slam-dunk from the Americans, that’s the way they do most things! They might sell it off in the quiet of night while all the happy shoppers are sleeping…. then they can wake to another happy headline…

May the headlines go forth and prosper….

p.s.

Within the article you mention that there is an essay expanding on the theme….”Further investigation reveals that bank lending and property speculation have gone wild. (More on this in today's essay, below...)”…is this posted elsewhere, another post?

By: Andrew

Andrew — Tue, 21 Jul 2009 05:18:12 +0000

"Inflation not a Worry" from MP at the Age today Malcolm Turnbull won't like the Reserve Bank board minutes released today: they sound very much like a ringing endorsement for the Government's stimulus packages, or ''fiscal transfers'', to use RBA-speak. And the headline-seeking forecasters trying to talk up an interest rate rise this year also won't like them: there's nothing to justify that view. Indeed, the RBA is rather plainly saying that monetary policy is on hold for as far as the eye can see, but it's ready to cut rates again if it would help. Inflation's not a worry and there's simply no suggestion of any need to tighten.

By: Michael

Michael — Tue, 21 Jul 2009 04:37:28 +0000

Is that our Dan D. over at MoneyMatters admitting that a bull market may be developing?

By: Greg Atkinson

Greg Atkinson — Tue, 21 Jul 2009 03:32:18 +0000

The question is, are the Chinese forecasts any less accurate than the ones we put together in Western economies? After all, most forecasts are guestimates to some degree and the further you try and look ahead the more guesses you have to make.

By: Pete

Pete — Tue, 21 Jul 2009 02:55:23 +0000

CA: I generally agree with your posts.

There is a good article on the web called
"How does China ’save?’ Story of the circuitous journey of a US$"
I think you may find it quite interesting.

By: Coffee Addict

Coffee Addict — Tue, 21 Jul 2009 02:26:29 +0000

Anyone who has ever had anything to do with the Chinese ministries knows its all based on guestimate which are then reworked to look good. Think back to the USSR and the 5 year plans for the underlying system.

IMPORTANTLY the world (and indeed China) can thank Stern Hu for determining more accurate information on Chinese steel output and demand WHICH was solid enough to support a less reduced iron ore price in the near term.

I'm becoming a bit of a bear on China. Not withstanding China's clear ability to pay the tab in USD and a very solid steel production indicator (courtesy of Mr Hu), politics, perpetual commercial eavesdropping and disorderly government interventions may well diminish business prospects.

Mismanagement of the Hu case may also be symptomatic of an underlying strategic conflicts and disagreement between ministries. I hope for all our sakes (including China) that the pro-business ministries win this particular battle.

By: GaryB

GaryB — Tue, 21 Jul 2009 00:20:40 +0000

How does China get its quarterly GDP growth stat out in 2 weeks, compared to 2 months for other countries? Alan Kohler on ABC news last week explained that the Chinese GDP growth is based on provincial leaders phoning in their guesses. Rubbery figures don't get much more rubbery than that.