Friday, November 2, 2007

Should I Work for Goldman Sachs?

"It is still open season on Goldman Sachs [GS]. ... The ugliest example of illicit publicly noticed activity by [GS] in my opinion was the late summer 2006 change to the GS Commodity Index. They lowered the unleaded gasoline weight from 9% to 2%, forcing the sale of $7 billion in gasoline contracts. ... Gasoline fell sharply in price, GSax profited heavily, all legal, not even a prosecutable violation. ... My point here is that GSax omitted the primary reason why crude oil is rising. The weak USDollar has an excellent hedge in the crude oil investment generally, in particular oil contracts and energy stocks. ... Shame on [GS] again! They issued a sell call on crude oil, but without mentioning even the major reason why it broke out: THE FALLING USDOLLAR. ... The investment community has been offered misdirection, deception, even possibly loaded data, tied to the energy market and this deceitful [GS] call", Jim Willie at http://www.kitco.com/, 1 November.

I had forgotten about GS changing its' commodities index. In my 24 October post, I accused GS, through Jeffrey Currie, of incompetence. Jim Willie may be right. It could be worse.

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