Goldman reports earnings tomorrow

Goldman reports earnings tomorrow morning, and estimates are all over the map. When people look at Goldman's balance sheet, you need to remember that they raised $12 billion from Buffett and investors 50 points higher; they got $10 billion of low rate money from the Fed's, and they cut their bonus pool by $8 billion.

That my friends is $30 billion.

Now also remember that our Government bailed out AIG for their credit default swaps, of which Goldman Sachs was a counter party, and received $2.97 billion. Now we are talking $33 billion.
http://www.bloomberg.com/apps/news?pid=20601087&sid=awTKDqalyQVc&refer=home

Now George Ball said that Goldman Sachs has probably thrown in the "kitchen sink" in this quarter? The kitchen sink? Does anybody remember the last time he said that? How about June 9, when he said Lehman was being "conservative" in his marks. Lehman wasn't even worth the kitchen sink plug!
http://aaronandmoses.blogspot.com/2008/06/time-to-test-bernanke-put.html

But Goldman Sachs supposedly has the "smartest" guys in the room. Bob Rubin, who oversaw the implosion of Citigroup was a Goldman alumni. Bob Steel, who oversaw the implosion of Wachovia, was a Goldman alumni. John Thain, who oversaw the implosion of "we don't need capital" Merrill Lynch, who asked for and then rescinded his bonus, who still gets credit for selling MER at 29 when it's at 14, was a Goldman alumni. So is our Secretary of Treasury, Paulson, who does everything in his power to help Goldman, and his sidekick Neel Kashkari, who both are Goldman alumni. If it wasn't for help from Treasury, Lloyd Blankfein, their current CEO would of oversaw the implosion of Goldman.

So why does anyone care? Goldman is an overpriced hedge fund, and if the earnings are decent, versus expectations, then sell it on the ramp.

At least there will some good news tomorrow. We won't have to worry about the discrepancy between actual tax payments to the IRS, and those that Goldman reports to investors.

The quarterly loss will get rid of that!