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alstry (35.21)

A Little Lubricant For The Sheep?

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10

May 11, 2010 – Comments (6)

When I go to parties, or in group situations, I often look around and wonder quietly....what will happen when the sheep actually learn they have been fleeced?

Yesterday we discussed the statistically impossible trading desk results of Goldman Sachs, which reported in its 10Q that it lost money on exactly 0 days last quarter, and was profitable on 63 out of 63 days. Today we find that the rape and pillage of the middle class was not isolated to Goldman, and that JP Morgan also had a flawless quarter. And if the odds of Goldman making 63 out of 63 are virtually impossible in any universe in which risk goes hand in hand with return (but in those in which monopolies are encouraged and bailed out), the coincidence of the two main firms that control the world having a perfect track record is impossible2. And since things in reality tend to be zero sum, when everyone makes money, someone may be tempted to ask the question, just who is losing money? And the answer, dear taxpayers, and [Goldman|JPMorgan] clients, is you.

http://www.zerohedge.com/article/jpmorgan-joins-perfect-10-flawless-trading-quarter-morgan-stanley-loses-money-just-4-days

I truly would like to extend a special Thank You to the English Majors and Motley Fool for providing an outlet where the sheep can actually read about what is happening to them......

When you don't care that your financial institutions are lying about the balance sheets....and who knows what else....really the only thing you can do is look in the mirror and say to yourself.........Baaaaahhhhhh.

6 Comments – Post Your Own

#1) On May 11, 2010 at 6:16 PM, RonChapmanJr (97.07) wrote:

You must be kind of boring at parties.  :) 

-1 rec

Where are the solutions?  What should average guy on the street be doing about all of this?

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#2) On May 11, 2010 at 6:16 PM, TMFAleph1 (96.00) wrote:

I am relatively skeptical by nature; however, ZeroHedge is a poor source of information... and a nirvana for conspiracy theorists.

Alex D

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#3) On May 11, 2010 at 6:19 PM, TMFAleph1 (96.00) wrote:

To be more precise, I should have said that ZeroHedge is a poor source of commentary, rather than information. As far as I know, the data they present is accurate; it is the way in which they present/ misuse it that is harmful.

Alex D

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#4) On May 11, 2010 at 7:14 PM, alstry (35.21) wrote:

Alex,

We all bring out collective experiences to the game...a few bring common sense.

It is distillation of the facts, experiences, and common sense that makes markets.

However, when fraud is interjected into the mix....none of the above matter.

Now the question is whether fraud is pervasive and whether sites like Zero Hedge are merely conjecture, conspiracy, or actually a valuble source for an accurate perspective.

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#5) On May 11, 2010 at 9:02 PM, dickseacup (67.39) wrote:

As far as I know, the data they present is accurate; it is the way in which they present/ misuse it that is harmful.

If you think Denninger is harmful, how do you feel about the way the Federal Government presents/misues data?

 

;)

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#6) On May 12, 2010 at 12:57 AM, TMFAleph1 (96.00) wrote:

If you think Denninger is harmful, how do you feel about the way the Federal Government presents/misues data?

Where it occurs, this is also a source of grave concern. A much bigger problem is the fact that most Americans are completely unequipped to evaluate quantitative data (see the excellent Innumeracy by John Allen Paulos), which means they are prey to manipulation at every turn.

Alex Dumortier

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