Goldman Sachs is doing it again. Goldman is telling the public that
everything is going to be just fine, but meanwhile they are advising
their top clients to bet on a huge financial collapse. On August 16th, a
54 page report authored by Goldman strategist Alan Brazil was
distributed to institutional clients. The general public was not
intended to see this report. Fortunately, some folks over
at the Wall Street Journal got their hands on a copy and they have filled us in on some of the
details. It turns out that Goldman Sachs secretly believes that an
economic collapse is coming, and they have some very interesting ideas
about how to make money in the turbulent financial environment that we
will soon be entering. In the report, Brazil says that the U.S. debt
problem cannot be solved with more debt, that the European sovereign
debt crisis is going to get even worse and that there are large numbers
of financial institutions in Europe that are on the verge of collapse. If this is what people at the highest levels of the financial world are
talking about, perhaps we should all start paying attention.
There is a tremendous amount of fear in the global financial community right now. As I wrote about the other day, the financial world is about to hit the panic button. Things could start falling apart at any time. Most of these big banks
will not admit how bad things are publicly, but privately there is a
whole lot of freaking out going on.
According to the Wall Street Journal,
Brazil believes that "as much as $1 trillion in capital may be needed
to shore up European banks; that small businesses in the U.S., a past
driver of job production, are still languishing; and that China's growth
may not be sustainable."
BUSINESS
SEPTEMBER 1, 2011
Goldman Takes a Dark View
A Private Note to Hedge-Fund Clients Gives a Strategist's View; Ways to Gain From Global Pain