Saturday, April 4, 2026

September 22, 2008

Laughter on a Sunday Evening

Some things are so obvious they are completely, laughably predictable.

Tonight, Bloomberg reports:

“Sept. 22 (Bloomberg) — The Wall Street that shaped the financial world for two decades ended last night, when Goldman Sachs (GS)  and Morgan Stanley (MS) concluded there is no future in remaining investment banks now that investors have determined the model is broken.”

Now that investors have determined the model is broken?

Are you trying to tell me that you are the victim of some self fulfilling prophecy?

You are throwing in the towel because you know that you cannot double down one more time.  The lights are out.  Gambler’s ruin has set in.

At the very least get a new PR agent.  These excuses don’t fly anymore.  You need to take a bit more accountability than that.  Come on.  Let’s get real here boys.  The locker room conversations have yet to get out.  When they do, the blame game will start.  When the blame game gets really hot, you are all going to look completely ridiculously obvious.  Even your most staunch supporters will have to run for cover.

Another thing, I am not gonna write about telling you I told you so, but I might right now.  After all, we are in the early days of this blog.  I do need to establish a bit of a track record if I want people to read me. So I quote from my September 12th post:

“Investment banking as we know it is over.  Lights out.  Game over.”

The next sector that will scream that they are the victim of a conspiracy is the commercial REIT sector.  You know my favorite short there.

Peace


Categories: recession, reits, stocks, trading

2 Comments »

  • [...] The machines jammed the e-mini futures contract above yesterday’s highs in the evening session last night. The rally soon fizzled when at around 8:30 AM EST this morning the socialized Manhattan bankers arrived at their proprietary (prop) desk trading turrets—the only sources of profits left in what was once known as investment banking. [...]

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  • [...] Lehman suffered the fate of gambler’s ruin. This story is being covered very well over at Zero Hedge. Keep an eye on [...]

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