Goldman Sachs had a relatively dismal Q2 with earnings per share dropping 83% to 78 cents. But “relatively” is what matters. Relative to Q1, where in 63 trading days GS did not lose even once, and according to their SEC filings, they netted at least $100M on 35 different days. According to Zero Hedge, “the statistic probability of this event is itself statistically undefined. Goldman is now the market…Goldman is the house, it controls the casino, and always wins.”
A perfect or near-perfect record of profitable trading even during the worst of times, GS is a de facto monopoly earning risk-free profits; those risk free profit are someone else’s loss, and that someone else is you. It will be interesting to see their SEC filings, particularly the 10-Q when that’s available, to see how “dismal” this quarter really was for GS. My guess: not very.
If the recent past is any indicator, we need only look to their 2Q 2009 filings. There was a lot of fallout after the total financial implosion in late 2008 and second quarter of 2009 was marked by some tumult in the markets. During that quarter, GS brought in close to $5 Billion, and lost money only on two trading days. They had forty-six days netting over $100M.
But there’s nothing wrong with the economy (LULZ!). This isn’t a malfunction. This isn’t an anomaly. This is exactly what’s supposed to happen. The markets are doing exactly what they’re designed to do, which is to “concentrate real economic power for the State and its beneficiaries”.