04/13/2009 11:19:14 PM EST

Obama's investment is paying off

posted by Robrob

Goldman reports $1.8 billion profit

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The big investment firm also sets plans to sell $5 billion in stock, paving the way for it to repay its TARP loans.

Goldman Sachs reported a much stronger-than-expected first-quarter profit Monday, bouncing back from its worst quarter as a public company.

http://money.cnn.com/2009/0 4/13/news/goldman.earnings. report.fortune/index.htm?po stversion=2009041317

 

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Obama's investment is paying off | 10 comments (10 topical, 0 hidden)
Keep in mind (3.50 / 2)

Remember that accounting rules were recently changed.  So we don't know if they are showing a profit because of a genuine turnaround, or if they are showing a profit because they are calculating things differently.  Specifically:

The Financial Accounting Standards Board said Thursday it changed its guidelines for so-called mark-to-market accounting. The new guidelines will require companies to value assets at prices based on what they would be sold for in an "orderly" sale as opposed to a distressed sale. The new guidelines will kick in for the second quarter and not be reflected in first-quarter results due in the coming weeks.

 So, what's happened is that all the bad assets on their books can now be marked as more valuable than they were before.  Furthermore, the banks were doing a lot to write down losses last year to get as much of that out of the way as possible and make later performance look better.

This all wreaks of smoke and mirrors to me and while it's a boon to investors in Goldman Sachs I don't believe this is evidence of a turnaround.  The economic fundamentals still suck and there's still tons of bad debt and inflated asset prices in the system.  

 

 

by sterno on 04/14/2009 12:35:53 PM EST

Fail (none / 1)
*sigh* nevermind, if I actually read what I'm pasting I'd see it said 2nd quarter.  So that's not in effect yet.

by sterno on 04/14/2009 12:37:33 PM EST

[ Parent ]
Haha...Cenk, your were wrong (1.50 / 2)
The country is going to bounce back and Obama's team was right!

by Perry on 04/14/2009 04:37:27 AM EST

Bush's investment (1.00 / 2)
Government Sachs Goldman Sachs received TARP money before Teleprompter Jesus bungled the oath of office.

by Twba on 04/15/2009 12:12:44 AM EST

OK (none / 1)
"America's" investment is paying off.

Your point?

P.S. You do realize the Chief Justice of the Supreme Court himself read it wrong to Obama in the first place, right?

"No, you are a paid blogger assigned to counter anyone that posts something negative about the government or Obama." by Mcamelyne II on 05/17/2011

by Robrob on 04/15/2009 11:21:32 PM EST

[ Parent ]
Investment (none / 1)
"America's" investment is paying off.

Then where are our dividend checks?

"Investing" in AIG, Government Motors General Motors, Fannie Mae and Freddie Mac is tossing money into a bottomless pit.

Government Sachs profited at the taxpayers' expense.

by Twba on 04/16/2009 03:42:32 AM EST

[ Parent ]
Sachs profited at the taxpayers' expense (none / 1)

So "Bush's investment" isn't paying off?

You were quite quick to give him the credit before.

"No, you are a paid blogger assigned to counter anyone that posts something negative about the government or Obama." by Mcamelyne II on 05/17/2011

by Robrob on 04/17/2009 03:00:33 PM EST

[ Parent ]
Hope dies last (none / 1)

So that is 0.what % of the tax-payer money they got? So, how long is the repay going to take? Just a few centuries? Phew, now that's some silver lining... ;).

Well, afaik, Cenk never claimed that private investors would not make a shitload of money in any case.

And for short-term I tend to not believe a single figure put forward because they know how to manipulate their sheets and to conceal the real balance for quite a while.

by eborujion on 04/14/2009 08:42:15 AM EST

What part of my post (none / 1)

"America's" investment is paying off.

Posted a day before yours on 04/15/2009 11:21:32 PM EST

Confused you?

You really should see a doctor about the ADHD.

"No, you are a paid blogger assigned to counter anyone that posts something negative about the government or Obama." by Mcamelyne II on 05/17/2011

by Robrob on 04/17/2009 03:05:32 PM EST

Ken, how does that foot taste? (none / 1)
"Did I miss your heartfelt apology and retraction?" You apparently missed my amendment of this topic to "AMERICA'S investment" posted above on 04/15/2009 11:21:32 PM EST. Of course as TWBA so kindly pointed out, Goldman Sach's was Bush's investment and it's not paying off for taxpayers. "Government Sachs profited at the taxpayers' expense." by Twba on 04/16/2009 03:42:32 AM EST Oooops.

"No, you are a paid blogger assigned to counter anyone that posts something negative about the government or Obama." by Mcamelyne II on 05/17/2011

by Robrob on 04/17/2009 03:56:15 PM EST

[ Parent ]
Obama's investment is paying off | 10 comments (10 topical, 0 hidden)
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