Monday, April 13, 2009

Goldman Knocks It Out of the Park

Goldman Sachs announced $ 3.39 per share earnings for the first quarter of 2009, eclipsing street estimates of $ 1.80. This was up from $ 3.23 per share in the first quarter of 2008. The earnings demonstrated the improvement in the credit markets during the early months of 2009, which proved to be the main source of the rip roaring quarter for mighty Goldman.

Goldman is trying to escape the clutches of Obama-Barney-Nancy-Chris. Goldman announced a $ 5 billion share offering, while sitting on $ 100 bililon in cash and near-cash in balance sheet assets. Paying back Uncle Sam would be easy, if only Uncle Sam would give permission. Not only did Paulson force Goldman to take the $ 10 billion in TARP money, now the government is withholding permission to Goldman to give the money bank. Welcome to the brave new world of free enterprise ala Bush-Obama.

The Bush-Obama stranglehold on our financial system is contributing to the overall malaise in the financial system. Wells Fargo would also like to pay back the TARP, but is getting refused by the government as well. Bank of America is in a similar position...ditto for JP Morgan.

It seems the government enjoys loaning money to large commercial banks. Wonder why? The banks don't want their money and would like to pay it back. Why, do you think, is Obama so insistent that the banks keep government money? Maybe economic recovery is not the real agenda here.