goldman sachs did greece a big favor. now in a report, some of those who did the deal talk publicly. >> the goldman sachs deal was between two seniors. the european crisis is not a from goldman sachs. perhaps we might have all agreed that this is what we wanted, it is just that we would not have been able to get public opinion. >> greece is on the brink. the poor man of the eurozone, depended on the eu, bailout loans, mistrusted by creditors. how did $2.8 billion of debt just disappear? -- how did 2.8 billion euro of debt just disappear? the greek authorities were making something out of nothing. now we come back to athens to understand how and why the deal was done. what was the deals cost to greece and its profit to goldman? why where iwatchdogs insisted that they knew nothing about the deal until 10,010? in 2001, as they wrestled how to qualify for your membership, the greek government questioned how they could kick the habit of the debt addiction. in order to join the euro, greece had to promise to show directionality

goldman's up 27%. so to me what i was trying to do where i think that would be a very healthy gain in the next few months. but i do think it makes sense to replace some long stock positions for people who were looking to take a punt on some of these bank stocks and maybe get some call or call spread exposure over the next couple months. >> i don't know about you guys, but i can't start my weekend especially a long one without playing this. we are talking about stocks versus options. buying 100 shares of goldman will set you back about $11,000. interesting risk reward there. earning season may be nearing a close, but a number of key momentum names have yet to report including priceline.com. bill shatner may be gone. will the good times continue this month. >> the daily and it shows what is so powerful about this. we have a huge range for over a year. 550 at the top, 450 at the bottom. when you have a period of shocking equilibrium. at some point the debate ends and someone gets the bag. and the presumpt

well they called the banks toure's over goldman sachs and said hey kalpa south goldman loaned them a billion dollars. here's billion dollars guys and then they took three hundred million dollars in fees and backloaded future payments to sir likely just more rate mortgages that they are giving people the united states exploding mortgages greece signed off on this by giving goldman stuff like future airport and lottery income their times reported back in february two thousand and ten when this loan came to light in two thousand and one just after greece was admitted to the europe's monetary union goldman help the government quietly borrow billions people familiar with the transactions in that deal hidden from public view because it was treated as a currency trade rather than a loan helped athens to meet europe's deficit rules while continuing to spend beyond its means as b.b.c. investigative journalist greg palast told us here on this program breach exploded people should know that it was cold. that lit the fuse the right thing create government and screw things up badly so they hired

they're all goldman sachs alums. the bill back to goldman sachs. they go back into government. -- they all go back to goldman sachs. they go back into government. it is a white house issued. >> this goes back to the media in a way. i will go back to goldman sachs if i must. remember in august when there were about 1200 people doing civil disobedience around the white house protesting the keystone pipeline. the corporate mainstream media was like this on that. imagine if 1200 tea party members hitched themselves to the date of the white house. when occupy launched in september in new york and then moved across the country, suddenly there was more attention being paid to other movements. it exposed how the media has done such a disservice to this country in the last few years by saying there was one movement in this country, the tea party. there are many other movements. the occupy wall street movement has brought into sharper relief and force the media to pay attention to other issues and movements. i could take off 10 or 15. -- tick off to enter 15

snead did i goldman, have you made your decision -- >> eddie goldman, have you made your decision? fall i'll be taking my talents to -- >> this fall i'll attend florida state university. >> florida state. that was his announcement this morning. eddie goldman choosing to take his talents to tallahassee. also committing to fsu is ron darby, running back out of potomac high school and goldman's teammate albert reed will go to college park. joining him at maryland four star running back wes brown from good council and stephon didgs. >>> the georgetown hoyas hit a road black this past weekend losing by 12 points to pittsburgh. the hoyas lacked hustle and energy and dropped out of top 10, but the hoyas say the mistakes from saturday night have been corrected in the days since and tonight they look to rebound against connecticut who have also lost three straight but the hoyas know the huskies are better than their record. >> both of us are coming off losses. i don't think there's any pressure. this is a game that we have been looking to win. so we approach it like of other game. >> time n

sachs but as it's the only thing that you can live by but you know goldman is duplicitous by definition they call market making their version of market making is heads we win. tails you lose. well speaking of deja vu here some images max from athens is that from two thousand and nine two thousand and ten two thousand and eleven or two thousand and twelve can you tell the tour gas by any other year is still a sweep again the deja vu greeks approved tombstone austerity deal with troika so we see over and over there's a great deal there is not a great deal there's a great deal there's not a great deal to do. on again off again there is a deal now there is the word german. we're cruising we're trying to milk you dry and still the elegant marbles but the u.k. already stole them but of course this is they already know the foregone conclusion whatever it is the banks the same ones that won in the attorney general case in america the same ones that won and the countrywide case the same ones that win every single time will win this time here's a headline from stock com i thought greek dramas con

goldman sachs is at the top of your list, right? >> goldman sachs is my only buy in the u.s. right now, yes. >> make the case why we should own shares of goldman here. >> goldman, again, as i look at it in the peer group, it's a relative value call. i've got better valuations on goldman. not a huge difference. not a tremendous amount of upside. but yo if you look at, at least my forecast, the return on tangible shareholder funds for morgan stanley, 2012-2013, i'm only up about 8.5% to 9.5%. goldman, more in the range of 11% to 11.5%. may be trading a little bit more expensively than morgan stanley on that multiple but it's more than justified by the better returns i see there. >> matthew, great to have you on the show. thank you so much. >> thank you. >> let's trade the banks here. cortes, i'm going to you first. correct me if i'm wrong, yesterday you said that if bank of america hits eight bucks, you start shorting it. >> yes, sir. >> do you put your money where your mouth is? >> i did short it. i'm a tiny bit under water right now. >> that's my guy, cortes. want to make sur

the virtual specials technology what does transparency do to prices would make it impossible for goldman to play the role of the pope along with the federal reserve and allocate favored pricing to their bodies as a poor part of a people indulgence and we saw that in the middle ages so no fair competition real competition that's long gone but exactly but like we said contract law is sacrosanct when applied to banks it is a terrorist act when applied to the population competition is bad for prices according to goldman sachs but as it's the only thing that you can live by but you know gold and duplicitous by definition they call market making their version of market making is heads we win. tails you lose. well speaking of deja vu here some images max from athens is that from two thousand and nine two thousand and ten two thousand and eleven or two thousand and twelve can you tell the tour gas by any other year is still a sweep again the deja vu greeks approved tombstone austerity deal with troika so we see over and over there's a great deal there is not a great deal there's a great deal the

morgan and goldman sachs want j.p. morgan and goldman sachs to get and once we get the green light on negative yields at auction next up will be the push for the fed to impose negative rates on all standing securities which means that coming soon savers will be literally paying to hold cash and that will be the final straw just confiscation of your money it's a fascist regimes in the past have not hesitated to just confiscate people's wealth the resulting in poverty ends up in creating state sanction or in this case bank sanction ghettos and then this is the beginning of a financial program which a financial hole cost and this is the program in place now those who have gold and silver of course are going to be the only survivors as we've been saying on the show for a number of years as well so the fed doesn't believe in the dollar clearly because they want to be confiscating the capital like this here over in europe buddhist bank sinks deeper into debt saving europe so germany's buddhist bank has entirely exhausted its

goldman sachs is a bank holding company. we apply our bank methodology to goldman sachs. we release new ratings in november 2011. >> i think our goal our goal with this is that you know, they were trying to emulate using the goldman sachs model so i wondered if you were looking at them as their old business model primarily in commodities or were you looking at them in the sense that this is a company that is broadening their activities or giving you proprietary trading? do we need to look at them differently because it doesn't appear that you were doing that. >> one important differences goldman sachs has been access window and that mf would not have had. there are some comparisons. under our bank methodology we break down the components of the reading in and/or standalone credit rating at goldman sachs is triple b+ so that would be two notches above for mf global was so there is some similarity there. >> the risk manager said he was concerned that this expansion in business was probably really stretched in capital so both of these firms have your firm rated just inside t

sachs guy what was he the the head of goldman sachs in europe the european division and also you know the goldman sachs gang that helped greeks cook their books so that you get into the european monetary union you know that mary druggy and he's blaming the whole issue on socialism and the social safety nets and the whole mince is they're pushing it all back on the people and this fallacy is that is to people just take less earning less and pay more taxes that somehow that's going to create jobs and the big is that the system collapsed not the cause of the workers but the cause of the banks the hedge funds the private equity groups and all the dirty dealing and i think you bring up an interesting distinction too because there isn't it a distinction between whiles extraction and wealth creation even during the robber baron period where you had inequality you still had robber barrons that were creating something whereas now you just have that class of people that are extracting wealth but i want to hit on something where you're talking about how people cannot save and what that world is

welcome back so goldman sachs and morgan stanley reportedly have reduced their use of mark to market accounting us an article today in the wall street journal the use cost accounting for some corporate loans now this is where assets are held at their original value we've talked a lot about mark to market on this show so. if this is the sound sketchy i don't know what does we're going to look at what's really going on here also we know banks have a risk problem ok moody reminded us yesterday when it said they may downgrade grade practically all of investment banking pretty much and look at this they have a reputation problem too this firm puts together a reputation quotient and below fifty is deemed critical this is even below very poor and what do you know look at this bank of america a.i.g. and goldman sachs find themselves in dangerous territory occupying that same space that di funk companies occupied in years past had before expiring now past fifty reputation quotient performers include the now deceased and run adelphia and world com now i should also note that financial services

is the goldman sachs j.p. morgan you see bacon absorbed many many trillions of this junk without breaking a sweat and remember folks it's all legal what germany is doing it's all loophole so the next headline also from ambrose everand pritchard from the telegraph says the perils of mario drags one point five trillion euro blitz a disturbingly laura number of credit experts warn that the e.c.b. lifeline is not the game changer that the markets seem to think cannot in itself save the euro land and may prove counterproductive perhaps soon suddenly all these credit experts are thinking hey. all of this lending to the banks these trillions and trillions and trillions of dollars and euros and fake currencies around the world all of it actually may blow up because i'll bear to gallo from r.b.s. says drag is four hundred eighty nine billion euro loans to banks at one percent for three years the l t r o is having all kinds of toxic effects which is disturb and giving that the financial times splashed a headline that th

. >> goldman sachs says out with the hedge fund monitor. saying hedge funds own 4% of apple's market cap. >> that's it? >> that was what was so shocking. >> they also own the xlk. there's a lot of things. when that turned two weeks ago it went straight to 47 in a straight line of massive volume. that's the thing i worry about in a more difficult market than we're in right now. when a few guys head for the door, you can see much lower. >> small caps have performed over the last week or so. does that mean investors should be concerned at this point? let's find out what the charts are saying. carter worth. a lot of people pointing out that the small caps seem to be stalling out and maybe that's bad news nor the market. what do you see? >> in principle, i wouldn't interpret it -- maybe the small performs. if you were to look here at the xhb, the move from 60 quite precisely did not break the low and has gone to basically 83, 84. that's a 40 move out. and now starting to pause. meaning we've gone sideways for 20 sessions. because the s&p's conti

no the difference between who they're talking about and bankers how many taxes did goldman sachs or j.p. morgan pay last year max about one percent of income general electric not zero ok so the these extremist refused to pay taxes how many regulations does jamie diamond say he wants to abide by. he goes to other countries like canada and gets them to go around their own regulations exactly however we're going to turn to some more extremism max how your dollar got to be worth just three point eight cents this is an extremist chart from credit suisse bank on the extremist web site business insider dot com and you can see from the chart on the read the rising prices notice how prices really started to take off max after nineteen seventy one the blue is the purchasing power in one thousand nine hundred dollars i noticed the two huge catastrophic drops of about fifty percent at a ten year period when your purchasing power dropped by fifty percent the first time nineteen ten to one nine hundred twenty what happened in that ten year period . the federal reserve was created then the second one

in other words, go out loud throughout the whole goldman sachs organization. i'm asking people, call your clients, see if anyone has any whirlpool for sale. when people hear they're big buyers, funny thing, they don't want to sell either. so with a 61 top, same problem. tons of buyers there, no supply to sate them. now the stock starts really getting away from the buyer. he's frantic, take it, just take it, take it to where the supply is! get it in! next thing you know, whirlpool is at 71, where it traded today. right now that same thing is happening all over the street. green mountain, netflix. because these like whirlpool are annuity shorts, multiple buyers of all three. all trying to get stock, but no supplies available. buyers have come back day after day and still can't find shares so they pay up even more. you cannot fathom these moves if you're thinking in terms of home gamers buying a couple hundred shares. these situations are what happens when investors turn swiftly from bear to bull on better than expected news. they're called short squeezes, becaus

morgan collapse let goldman sachs collapse if these guys cannot. compete without rigging the market without manipulating every single market they enter because mary shapiro is afraid they might face a lawsuit well you know take all the money away from them and what's the easiest way to do that raise interest rates as volcker did in the late seventy's early eighty's to get rid of the last generation of predatory bankers and set the stage for the american century the whole american nineteen eighties to two thousand period of growth it was done on the back of higher rates to weed out the financial croaks now unless that happens again the u.s. and grace and portugal and all these other free out currency fractional reserve bank currency nations are heading into the pit of work they say never thanks so much to bring on the geyser bark thank you x. go away much more coming away stay right there. i'm asked as a welcome back to the kaiser report time now to go to niceville florida and speak with karl denninger of market hyphen ticker dot org karl welcome ba