Given the inflows of money from mutual funds lately, it sounds like the public will try to get into the market yet. Given a potential crowding into equities, I am going to do some buying at these levels anticipating the news becoming lessened over the next few days.
Therefore I concur with Cramer and believe the legal problems that Goldman is having will eventually blow over. Additionally, since it is so important for the government to justify their hard stance on the banks to the public, I think the actual judgements if any will be far less than expected. The important part will be to show that something is being done with the "Wall Street Fat Cats".
PS - I do own some GS. I am not buying more right now but will not sell.
PSS - Given most of the Tarp money lent to banks has been payed back from the government, shouldn't the government be focusing on AIG and GM? I do not believe they have payed anything back to the People of the United States. Anyone know differently?
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I know its weird to post to my original post. But this Goldman Sachs government lawsuit is really interesting. There are two bad options for Goldman: fight the suit or settle.
ReplyDeleteThe "Fight the suit" option would likely find Goldman innocent, but with far too much bad press. Who would want to work with them after all the bad press the government would shovel onto them.
Then there is the "Settle" Option. This would make it feel like there is an inside deal. Additionally, the public and Goldman Clients might think twice about dealing with a company that might not be trusted?
A choice of two bad options. I think I would vote to fight and vindicated the company so future clients could trust Goldman again.