Goldman Sachs is sticking to the story that it cooked up (by which I do not mean to imply that they’re lying) about not having any subprime-related writedowns on the horizon. The consistency of the statements coming out of 85 Broad almost makes it seem as though those guys are telling the truth about being better than everyone else by leaps and bounds (which is, admittedly, not necessarily a feat to write home about). You could say we’re easily swayed by the power of suggestion (or just not that great at valuing Level 3 assets*), but we’re starting to believe what we’re being told, over and over and over. You could also say we just don’t ever want to see that face (at left) again (because it reminds us too much of childhood). Seriously, though look how mad he is at you punks, who won’t stop asking him to fess up to a crime Goldman maybe never committed.
Regardless of the lies or not lies, no one has touched the biggest issue, which is the fact that Llloyd claims GS is maintaining its short position on subprime just one day after Stephen Schwarzman said Blackstone is “going long” on those mortgages. This is just like that time Jesus and Judas found themselves pitted against one another, except with much higher stakes. We’re not just talking about thirty pieces of silver anymore.
Goldman: No More Write-Downs [AP via Forbes]
Goldman Doesn't Plan Significant Mortgage Writedown [Bloomberg]
*which is just us being humble, you know we could nail this stuff with our eyes tied behind our back.