Goldman Advising Default Swaps

[don]

Dec. 10 (Bloomberg) -- Goldman Sachs Group Inc., one of the top five U.S. municipal bond underwriters, is angering politicians and public-finance officials in New Jersey, Wisconsin, California and Florida by recommending that investors purchase credit-default swaps to bet against 11 states’ debt.

In the three months since the New York-based securities firm recommended “shorting municipal credit,” the value of the Markit MCDX index of the derivatives’ price more than tripled, to as high as 278.33 basis points from 87.75. A basis point on a credit-default swap protecting $10 million of debt for five years is equivalent to $1,000 annually.

http://www.bloomberg.com/apps/news?p...fer=govt_bonds

Any chance some of the Central Bank public bailout funds could be in play on this bet?

And this is called a civilization. It sure as hell isn't a society.:eek:

[kingcopper]

Re: Goldman Advising Default Swaps

Goldman probably considers themselves the last bastion of real capitalism; bailout and all!

[*T*]

Re: Goldman Advising Default Swaps

This reminds me of the following fable.

"The Farmer and the Viper" is a fable attributed to Aesop. The story concerns a farmer who finds a viper freezing in the snow. He takes pity on it and picks it up and places it within his coat. The viper, revived by the warmth, bites the farmer. The farmer cries out that he should have seen it coming.
In some versions, the farmer brings the viper home and his children go to pet it. The viper gets ready to bite the children when the farmer cuts off the viper's head.
The moral is that kindness is wasted on evil. The story is thus analogous to the Bible parable about "casting pearls before swine".
Another version says that the viper is magic, and repays the farmer with a sack of Oboluses each morning. The farmer's son tries to cut the snake open to get all the coins, but the snake kills him. The farmer mourns over his son, and the snake mutters to him the moral before vanishing forever: Why do you mourn over loss of that which gave none, yet tried to destroy that which gave all.

[marvenger]

Re: Goldman Advising Default Swaps

I certainly hope that the old fable is right and that the boy doesn't figure out to keep the snake in a comatose state so he can keep cutting it open to reap the generated coins.

[jtabeb]

Re: Goldman Advising Default Swaps

I certainly hope that the old fable is right and that the boy doesn't figure out to keep the snake in a comatose state so he can keep cutting it open to reap the generated coins.

Yeah, cut the BOY open I say!:p

[Andreuccio]

Re: Goldman Advising Default Swaps

Dec. 10 (Bloomberg) -- Goldman Sachs Group Inc., one of the top five U.S. municipal bond underwriters, is angering politicians and public-finance officials in New Jersey, Wisconsin, California and Florida by recommending that investors purchase credit-default swaps to bet against 11 states’ debt.

Have those things not been outlawed yet? :mad:

[Adeptus]

Re: Goldman Advising Default Swaps

The moral is that kindness is wasted on evil. The story is thus analogous to the Bible parable about "casting pearls before swine".

Not to spurr off a religious debate here, but I think that's stretching the meaning of the bible quote a bit. I would argue that "kindness" would be more accurately replaced with 'the wise', and "evil" with 'the ignorant'. My understanding is that "casting pearls before swine" means something along the lines of: Do not waste your time extolling words of wisdom (pearls of wisdom) for those whom are so 'low' (swine, pigs... but not necessarily 'evil') that they would be incapable of understanding what you are trying to convey, and more than likely, will probably misunderstand you, thus distorting/dirtying (pigs/swine) the highest Truth.

As an itulip/economics swine myself, I very much appreciate the [financially related] pearls of economics wisdom cast about on these forums

[Tulpen]

Re: Goldman Advising Default Swaps

Not to spurr off a religious debate here, but I think that's stretching the meaning of the bible quote a bit. I would argue that "kindness" would be more accurately replaced with 'the wise', and "evil" with 'the ignorant'. My understanding is that "casting pearls before swine" means something along the lines of: Do not waste your time extolling words of wisdom (pearls of wisdom) for those whom are so 'low' (swine, pigs... but not necessarily 'evil') that they would be incapable of understanding what you are trying to convey, and more than likely, will probably misunderstand you, thus distorting/dirtying (pigs/swine) the highest Truth.

As an itulip/economics swine myself, I very much appreciate the [financially related] pearls of economics wisdom cast about on these forums

I agree. The "casting pearls before swine" saying has nothing to do with "kindness is wasted on evil".

[grizam303]

Re: Goldman Advising Default Swaps

You guys who are so quick to point out someone's "wrong" interpretation of the bible could stand to read the portion immediately preceding the "casting pearls before swine" bit...

[Tulpen]

Re: Goldman Advising Default Swaps

You guys who are so quick to point out someone's "wrong" interpretation of the bible could stand to read the portion immediately preceding the "casting pearls before swine" bit...

“Do not give to a fool, for he will scorn the wisdom of your words.”
- Proverbs 23:9 -

[rdgmail]

Re: Goldman Advising Default Swaps

Is anyone still listening to Goldman? They just slashed oil price estimates from $200 to $30 per barrel. Their credibility should be a bit shaky. I'll seek advice elsewhere, thank you.

http://www.ft.com/cms/s/0/a49b9000-c...nclick_check=1

[*T*]

Re: Goldman Advising Default Swaps

I agree. The "casting pearls before swine" saying has nothing to do with "kindness is wasted on evil".

It is a wikipedia article so you can change it...