Obama Administration Attack on Goldman Should Come as No Surprise to EPJ Readers

Goldman stock is now down 13.3%, today. This is what I wrote in January:

As far back as early December, I mentioned Goldman Sachs as an ideal short sale candidate.

Despite a better than anticipated fourth quarter earnings of $4.95 billion (largely because of no charges for bonuses in 4Q), the stock was rocked today by indications that Wall Street will be President Obama's whipping boy.

GS's incredible ability to infiltrate the higher echelons of governments worldwide, does not appear to transfer over into an understanding of Joe Six Pack. They appear to have zero ability to identify with the average man on the street, and, thus, have no idea of how to pose for the public.

It took the Scott Brown victory in Massachusetts, but Obama has now realized that Joe Six Pack wants blood from GS, and, so at least publicly, Obama has decided to attack Goldman.

This, of course, will have nothing to do with the fundamental causes of the business cycle which always are the result of money printing. Indeed, as a few have already pointed out, the new regulations of banks proposed by Obama wouldn't have even stopped the formation and abuse of the securtized debt obligations that took place. It's all a nasty show, with the government posing as father knows best, when they are running the scam through the Federal Reserve printing presses.

And, since March 2009, for whatever reason, those printing presses have been silent.

This means that the drop ahead will not be a short term event, the stock market and gold are headed much lower. The dollar will be strong. That has been my forecast for some time, and I continue with that forecast today. Brace yourselves.

Money not being printed, means that the manipulated capital structure of the past will attempt to correct itself. This will be result in a double dip.

And, it is clear, when the man in the White House needs to appease the masses, he will use interventionist methods to do such. This will work as an accelerant of the double dip, as we learned today.

The charges today against Goldman Sachs could have been totally avoided (That's why you place so many people in high places) if Blankfein wasn't so damn tone deaf, and if he didn't diss the president. As I have suggested for sometime, I will be very surpirsed if Blankfein survives at Goldman, the full year.

And I really don't think there is any reason to cover GS shorts just yet. With the fragile state of the economy, and Morgan Stanley and JPMorganChase being able to wave these charges in front of Goldman clients, coupled with  the lawsuits coming from those who lost  huge money on the CDO's that  now appear to have been sold under fraudulent circumstances, it is clear Goldman's troubles have only just begun.