Loading ...Just when you thought the evil empire that is Goldman Sachs could not get more unethical, they prove you wrong. Goldman Sachs is now preparing for the next financial collapse, the derivative market. For evidence all you need to do is examine Goldman Sachs top 10 net short positions.
# 1 – Powershares Nasdaq QQQQ – $550 million net short
# 2 – Wells Fargo – S289 million
# 3 – Mastercard – $266
# 4 – Currency Euro ETF – $216 million
# 5 – PNC – $202 million
# 6 – Agnico Eagle Mines – $163 million
# 7 – AIG – $152 million (yes, talk about shit bags, to short the company that feed them over 20 billion dollars of taxpayers’ money)
# 8 – iShares Brazil – $59 Million
# 9 – Barrick Gold – $37 million
# 10 – Exxon Mobil – $29 million
It’s interesting to notice that 4 are financial institutes that are highly leveraged and have significant exposure to the derivative market. There is little double that the bubble that has become the derivative market will someday burst causing EXTREME financial collapse of the system. It is Ironic that Goldman Sachs itself will be the collapse that hurts the system the most. Yes, it is simple math really; GS has 41 Trillion dollars in derivatives but only 119 Billion dollars in assets. That means that they are betting with 400X the amount of assets they have (of which some are illiquid and not market down). Even assuming that they are 100% market neutral, the margin of errors is too great for the system to handle. What is more amazing is that this number is close to the total Global GDP.
Well, I guess if you had an understanding how overleveraged, over invested, and fraudulent our economic system is…you too would short banks and bet on a second dip to the depression.
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