Goldman Sachs score hattrick

Instead of corporate earnings report,economic calenders,Fed officials or government speeches-that can have tremendous impact on the financial market,Monday seems to have a different financial theme player---the Good Oldman Sucks.

It need only four financial analyst of the company namely Lori Appelbaum, Thomas Cholnoky, James Fotheringham and William Tanona to write in a lengthy gloomy report released on Monday about falling house prices and a worsening economy that will drive down securities based on residential mortgages, especially those given to borrowers with the riskiest credit.Write-downs will mount and some mortgage insurers and guarantors will be forced to raise capital just to survive.

Meanwhile, the value of collateralized debt obligations -- bonds based on pools mortgages -- related to those subprime mortgages, could fall another $150 billion across the industry, the bank said.This reignited fears that losses from the global credit crisis may widen.

With home prices, consumer credit deterioration is not far off. The downturn in housing is spilling over into employment in some states and is leading to high consumer losses, the analysts said.
Falling home prices have put one-third of the United States, by Gross Domestic Product, in or near recession, the analysts wrote. California is the biggest concern as it represents 13 percent of the U.S. GDP. Card and auto losses will rise.

Although financial companies across the board have seen their stock prices walloped, despite attractive valuations, Goldman says a broad wave of industry consolidation is still another 12 to 18 months away.

"We believe acquisitions are unlikely to occur until balance sheets stabilize and a market bottom is in sight," the analysts said

Tracking the Dow on 19/11/07.

The opening Gap-Down only 0.49 points and slide in the first minute giving every investors no time to react.

Breaking the 13,000 mark psychological barrier is quite alarming.Is the US recession going to start after Thanksgiving Day or has it started?The intraday pattern has the sight of an inverted head & shoulder but the right shoulder is still half paralyse.It must form by tonight otherwise which the market will collapse further like the US dollar.

The global financial flushing started on Tuesday 13th from the west and travelled to European Union on 14th,South Asia--=India on 16th and the last leg of tour Asia Pacific on 19th completing the Long white bullish candlestick.Just in time for the Fed's minutes of October Meeting to be held tonight.See how good Mr Good Oldman can plan all these tactical move.He must be a 'finacial dictator.'