Go Go Gadget Goldman!

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The news of the morning (and after the bell yesterday, of course) is Goldman's earn-and-burn two-step. Blow away estimates (thanks prop desks!) and burn bridges with the Safecracker and the icy grip of Obarney. But Goldman is looking at a complicated mess to untangle.
First, a sale of $5 billion in common (with Goldman underwriting itself) will surely cause shrill screams to issue forth from the cobweb tangled lair of black-widow Maxine Waters, where the silk entombed, still living carcasses of Ken Lewis, and Count Vikula hang suspended from her ceiling, paralyzed by her neurotoxins. We can hear it now: "You paid yourself fees to take money from the public?"
Second, while Goldman is anxious to dip below the threshold that ties the all powerful bonus dollar up, the Government is decidedly less anxious to let Goldman escape its clutches. Wait for "now is not the time," to issue forth from the White House. How we would love to see Goldman keep sending the check to The Safecracker until its accepted if/when this happens.
Third, paying back TARP is not enough. The Government also has a large chunk of warrants attached to the deal which Goldman would have to buy back.
Fourth, Goldman is paying over a million a day for the pleasure of Warren Buffett's company in the form of dividends on the "Buffett Preferred," which they cannot pay back until the government "lets them."
We, of course, are cheering Goldman on (insofar as this means cat calling Maxine Waters and Barney Frank) but it is a long road ahead.

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