Posts Tagged ‘Goldman Sachs’

Abby Joseph Cohen at Goldman Sachs sees a bull market but I see a broken record

Thursday, August 6th, 2009

Cohen at Goldman Sachs says it’s a bull market. Again. Problem is Cohen is a cheerleader with one outlook for the market – positive. I was shocked when she started urging for caution after Lehman went under.

If you think we’re in a bull market then fine – start buying. But I wouldn’t take Cohen’s word for it.

Is a low housing start number in this housing market is a bad thing?

Thursday, April 16th, 2009

We’re looking for “green shoots” in areas that got us into trouble in the first place – excessive consumption, mis-allocated capital, and a trading mentality. We’re celebrating firms like Goldman and JP Morgan because they made good trading gains while credit to the real economy continues to be cut.

If you believe like the Administration and Wall Street that we’ve got a “confidence” problem, then growing housing starts indicates improvement. If you that we have a structural problem with the economy, then a drop in building over-supplied assets is actually good news.

Lower housing prices can be a good thing because it means that workers can prosper at lower compensation levels, which means that we can start regaining cost advantages relative to our trading partners and taking back industry lost as well as creating new industry. All it would take would be to let the zombies on Wall Street go under.