I’m always interested in how Government ties in with the markets. It’s been a bit of a hobby of mine, along with WWII battles, over the past 2-3 years and there’s no bigger tie then Goldman and the Government then recently…and BOY is it bigger then we know! In my recent late night surfing I came across Greg Roy. Greg recently released a special report with the same title of this blog post, Goldman Sachs’ Next Slaughter of the Stock Market Lambs, and being the digger I am, I read the full report and cold called him. I asked if I could repost a part of the report for my Trader’s Blog members. After some convincing he said ok.

This guy knows what he is talking about… Here is an exclusive excerpt from his newly released report Goldman Sachs’ Next Slaughter of the Stock Market Lambs.

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Goldman Sachs

With investors taking heart from better-than-expected earnings announcements (albeit only as a result of cost cutting negating a decline in revenue), the major US equity indices reached new highs for the year on Thursday/Friday and the S&P 500 Index closed in on the roundophobia 1,000 level.

Newsweek’s cover declared “The recession is over”, but a footnote stated “Good luck surviving the recovery”, implying a hard slog ahead.

Elsewhere, Washington hosted a US-China Strategic Dialogue, as the Chinese is increasingly focusing on America’s deficit, the value of the greenback and the implications for its Treasury holdings. After almost doubling, a mid-week sell-off in Chinese stocks raised concerns about the sustainability of the Chinese economic recovery and repercussions for the rest of the fragile global economy.

Unsurprisingly, four of the clips included in this week’s video compilation deal with Chinese -related issues. Covering these and other topical issues are David Rosenberg,

From the depths of the credit crisis last November, the price of Goldman Sachs’ stock (NYSE: GS) has soared 178%. The price of gold, meanwhile, has advanced a mere 25%. Is Goldman, therefore, the new gold? An investment acolyte could easily draw that conclusion.

In fact, most experienced investors have reached a similar conclusion. These sophisticated investors know that Goldman is a far better investment than gold, not merely because CNBC worships the former and despises the latter, but also because Warren Buffett took a $5 billion position in Goldman Sachs, not in gold.

That said, a few of us experienced investors are slow learners. We do not comprehend as rapidly and facilely as most folks do that Goldman is better than gold. We are slow to understand that a highly leveraged trading operation - subsisting on short-term financing, friendly accounting conventions and intermittent governmental coddling - is