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

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Dan Holland has just interviewed Wall Street chronicler Charlie Gasparino’s. The first few paragraphs of the interview that appeared on RealClearMarkets are published below.

There’s good reason to believe that Gasparino’s latest book, The Sellout, will become the definitive book on the current financial crisis and the events that led up to “The Great Recession.” Spanning three decades, The Sellout pulls no punches in chronicling the rise and fall of excessive Wall Street leverage and risk taking, as well as the cast of colorful characters that ultimately brought the US financial system to its knees. It will hit bookshelves tomorrow [Tuesday].

RealClearMarkets: You sat down recently with Wall Street legend Teddy Forstmann to discuss your new book and the genesis of the mess we now find ourselves in. Forstmann said it all began as a “cold” back in the 1970s and 1980s, and that since

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In the midst of the 1990s bull market, one lone regulator warned about derivatives’ dangers - and overnight became the enemy of some of the most powerful people in Washington …

In The Warning, veteran Frontline producer Michael Kirk unearths the hidden history of the nation’s worst financial crisis since the Great Depression. At the center of it all he finds Brooksley Born, who speaks for the first time on television about her failed campaign to regulate the secretive, multitrillion-dollar derivatives market whose crash helped trigger the financial collapse in the fall of 2008.

“I didn’t know Brooksley Born,” says former SEC Chairman Arthur Levitt, a member of President Clinton’s powerful Working Group on Financial Markets. “I was told that she was irascible, difficult, stubborn, unreasonable.” Levitt explains how the other principals of the Working Group - former Fed Chairman Alan Greenspan and former Treasury Secretary Robert Rubin -

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Greenlight Capital partners letter Stansberry & Associates Investment Research

Buffett’s imaginary economy Reuters

The must read libertarian quote of the month The Daily Crux

Trader alert: Oil trading at critical levels The Daily Crux

Confidence in Obama drops from 60% to 49% Bloomberg

Krugman: Obama’s trust problem NYT

Danger for the dollar The Daily Reckoning

Socialized healthcare versus the laws of economics Whiskey and Gunpowder

Robert Rubin’s agony The Daily Beast

Armageddon averted…or was it? Forbes

‘Committee to Save the World’ Fails Twice! It was 10 years ago this month that Time magazine gave us the Committee to Save the World:

Looking proud, confident…Alan Greenspan, Robert Rubin and Larry Summers proposed to save the world from the Asian debt crisis… They should have left well enough alone.Because of them, we now have a crisis that is far worse.

But the longer the rally goes on, the more people think it is permanent. They think the crisis is over already.

Last week, the Dow took baby steps…but mostly up the stairs. On Friday, the index rose another 28 points. Oil held steady at $72. The dollar rose a little, to $1.39 per euro. Gold was the big loser – down $21, but still in the mid-$900 range.

When the baby finally gets to the top of the steps, the poor lil’ fella

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I wanted to pass along a little info that got me thinking. I've been reading span style="font-style: italic;"More Than You Know/span by Michael Mauboussin. He talks about process vs. outcome and expected value. Here are a couple of good quotes:br /br /blockquote"But investors often make the critical mistake of assuming that good outcomes are the result of a good process and that bad outcomes imply a bad process. In contrast, the best long-term performers in any probabilistic field-such as investing, sports-team management, and pari-mutuel betting- all emphasize process over outcome." /blockquotebr /br /The idea here is that a sound process, implemented over time, will likely lead to strong results. There may be times when the results are skewed, but they usually catch up. Take a look at a casino for example. Sure there are times when gamblers make lots of money, but ...

Contrary to the prevailing analysis, we believe that the Obama and Bush administration insistence on protecting banks at the expense of the taxpayer is the result of a Machiavellian effort by Goldman Sachs and other major banks to influence U.S. economic policy by infiltrating the corridors of power.

Today, we duly note that Goldman Sachs has just hired former Barney Frank staffer Michael Paese to be its top Washington lobbyist. This position was formerly held by Mark Patterson, the current chief of staff at the Treasury.

Pease and Patterson are not the only ones to pass through the revolving door between Washington and Goldman. Bush’s Treasury secretary, Hank “The Hammer” Paulson is a former Goldman CEO. And his replacement, Tim Geithner, was mentored by Gerald Corrigan, a former New York Fed president and current partner and managing director of the Office of the Chairman of Goldman Sachs.

Who else was President Obama considering

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The top gold price in Hong Kong on Friday was at 4:00 p.m. in their afternoon…which was 8:00 a.m. in London…and 3:00 a.m. in New York. As soon as London opened, gold began drifting slightly lower. 

Once London was closed for the weekend…4 p.m. London/11:00 a.m. New York…the gold price rose a bit and nearly finished on its high of the day. It was a hugely bullish performance occurring as it did on Comex option expiry. The Comex floor session close was up $7.50 on an estimated volume of 77,210 contracts…including a switch effect of 4,878.

Silver did practically nothing…and spent most of Friday within a dime of its Thursday close.

But having said that, the shares turned in a one of their best days of the last year or so. Both silver and gold shares sparkled…with the HUI up 6.94%! That’s a lot considering that Friday’s price action was almost not worth

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Time magazine has again demonstrated its irrelevance in the Internet age with a fatuous feature called “25 People to Blame for the Financial Crisis.”

The failure here is two-fold: One, the editors’ choices of who’s to blame, and two, the reader poll ranking those choices.

Let’s start with who’s on the little list — or more to the point, who’s not.  Time did an OK job of unearthing lesser-known names who definitely bear some culpability in the disaster — such as AIG’s Joe Cassano, who did much to unleash the nightmare of credit-default swaps.

But how can anyone take this list seriously when it doesn’t include Ben Bernanke?  Yes, Greenspan (who did make the list) laid the foundation, but Bernanke built on it with abandon.  Perhaps it’s because the intelligentsia regards him a genuine scholar on monetary matters — you know, historian of the Great Depression and all that.  A far more

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It took a moment for it to sink in that things are going to be ‘hard’, and that we will have to ‘do right’ to prove our character. When it did, I thought to myself, ‘It’s worse than we thought! We’re freaking doomed!’

The news just keeps getting more terrifying by the day, perhaps no more terrifying than when Bloomberg.com reports that President Obama is issuing “a ‘call to service’ to Americans” to help “confront the nation’s problems.” We’re all getting drafted! Gaahhhh!

He did not say that in so many words, of course, but he did say, “The true character of our nation is revealed not during times of comfort and ease, but by the right we do when the moment is hard. I ask you to help reveal that character once more.”

It took a moment for it to sink in that things are going to be “hard”, and that we

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