The Geniuses at Goldman Sachs Blow Up Some Client Accounts

Goldman genius.

WSJ is reporting that Goldman Sachs today closed what had previously been one of its top trade recommendations for 2015: shorting the Swiss franc versus the Swedish krona, AFTER  the  Swiss National Bank announced that it would no longer support the euro on foreign exchange markets.

In other words, GS clients who had the trade on based on GS's prior recommendation have been blown out of the water. You did not want to be short the Swiss franc this morning. At one point the franc was up 14% versus the krona today. Since these trades are all done with tremendous leverage, there are some GS clients with serious losses.

This proves once again that GS has no secret trading skills, They are simply trend followers, who get blown up every time a trend changes. The only difference between GS and their clients, and the rest of us, is that when GS blows up its own account, it runs to the government for a bailout.