Friday, March 19, 2010

Whose leverage is more worthless: JP Morgan or Goldman Sachs?

As Economist Max Keiser's show ( points out: We have rigged Market Capitalism.

Goldman Sach's derivative liabilities equal 33,833 % of Assets!

is Goldman Sachs's being levered 33k times their capital the main reason why most of their "profits" go out in bonuses every year?

Have they been running an Enron schemed, Lehman Brother Super Ponzi Scheme for the whole of the US Government or the Whole World?

In an actual free market system, Goldman Sachs's share price should be worth somewhere deeply negative of Zero. They'd have to pay you money to own shares with that much liability.

With this much liability, Government Sachs makes AIG's picking up of nickels in front of steam roller "profit" based system look like child's play.

What about JP Morgan? Their most recent Liabilities totaled North of 90 Trillion in Derivatives?

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