- The Big Picture - http://www.ritholtz.com/blog -

Quote of the Day: GS & WMT

Posted By Barry Ritholtz On November 14, 2007 @ 11:30 am In Consumer Spending,Investing,Markets,Retail | Comments Disabled

Spy_futures_111307 [1]

From market curmudgeon Bill King, who tells it like it is:

"Ironically, or rather idiotically, traders poured into stocks on Blankfein’s assertion that Goldie is doing well because Goldie is short mortgage-backed securities and CDOs. Blankfein believes the financial situation will worsen: “…many institutions don’t understand what the credit crunch is going to do to earnings and their balance sheets.”

So what we have is a huge rally because Goldie will profit from the US economy and financial system going to hell.  And people pay fortunes to go to Ivy League schools and B-schools to learn how to play the new economy!?!?!  Apparently a critical mass of traders believes that not only what is good for Goldman is good for America but as long as Goldman profits everything else is immaterial…

Wal-Mart admits that customer visits declined in Q3; but food sales increased 5.3% and pharmacy sales jumped 7.9%.  Thank God for food & drug inflation that is not recorded in official inflation!

Recession, inflation, dollar collapse, financial system implosion – no problemo, Goldie is making money so pour into stocks!  And let’s be merry and jiggy now because Wal-Mart is booking Christmas sales weeks before Thanksgiving and food inflation is virulent enough to significantly boost revenue!"

Thanks, Bill . . .


Article printed from The Big Picture: http://www.ritholtz.com/blog

URL to article: http://www.ritholtz.com/blog/2007/11/quote-of-the-day-gs-wmt/

URLs in this post:

[1] Image: http://bigpicture.typepad.com/.shared/image.html?/photos/uncategorized/2007/11/14/spy_futures_111307.png

Copyright © 2008 The Big Picture. All rights reserved.