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Goldman's level 3? Does their crap smell, too?

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  • Goldman's level 3? Does their crap smell, too?

    http://www.bloomberg.com/apps/news?p...PGA&refer=home

    What do you think?

    I think Goldman Sachs is a big shorting opportunity.

    Level 3 is just another word for "We just pencil in imaginary assets now, this is the new new economy..."

    Oh warren, why didn't they listen!?

  • #2
    Re: Goldman's level 3? Does their crap smell, too?

    Level 3 smells by definition!

    "Here is some financial instrument, we don't know what it is worth for there is no market, but trust us it is fine! And if you don't believe us, we could sell it to some intermediate bank with a guaranteed insurance so then they can sell it back to us through another bank, so that proves it is pretty marketable wouldn't you say".

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    • #3
      Re: Goldman's level 3? Does their crap smell, too?

      Originally posted by Tulpen View Post
      Level 3 smells by definition!

      "Here is some financial instrument, we don't know what it is worth for there is no market, but trust us it is fine! And if you don't believe us, we could sell it to some intermediate bank with a guaranteed insurance so then they can sell it back to us through another bank, so that proves it is pretty marketable wouldn't you say".
      Yah. This is beyond bullshit.

      "We have assets that are worthless so we'll just put them into level 3 and say they're worth something"

      I mean really, give me a freaking break..
      Last edited by blazespinnaker; November 12, 2007, 01:36 AM.

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      • #4
        Re: Goldman's level 3? Does their crap smell, too?

        Actually level 3 assets are not necessarily worthless, but there is simply no market to measure the actual value.

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        • #5
          Re: Goldman's level 3? Does their crap smell, too?

          I think we all get that

          But the fact is, since the credit crunch, they've been elevating assets to level 3.

          Why is that? That's because demand for these assets have dried up, and rather than trying to price them based on demand, they just pushed them into level 3.

          And then they say they'll put it back to level 2 when demand shows up again.

          They should be required to put a random sampling of their level 3 assets for sale. Of course, they'd probably just get some shill bidder no doubt with some kind of quid pro quo (ie, super conduit fund)

          The banking industry has become very dysfunctional.

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          • #6
            Re: Goldman's level 3? Does their crap smell, too?

            Or perhaps by creating some intermediate bank where Paul buys from Peter and vice versa?

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