Panic, greed good
Posted by Ron Coleman on September 17, 2008
Stronger-than-expected earnings from Goldman Sachs Group Inc and Morgan Stanley Tuesday failed to reassure investors who staged a run on Bear Stearns in March and drove Lehman Brothers Holdings Inc LEH.P into bankruptcy Monday.
And despite assurances from Goldman and Morgan Stanley — the two remaining major investment banks — that they had ample cash and capital, investors fled.
Good old “investors.” Well, those are not investors, actually; they are speculators.
What a grand time to buy Goldman Sachs! Morgan Stanley I don’t know from, but Goldman? Gold, man. For the medium run, and the long haul of course too. (Update: A-yup!)
Now as to the likes of Lehman Brothers? The obvious question is whether the trustee in bankruptcy is going to take a harsh look at those massive “performance bonuses” I-bankers get over the last few years and politely ask for that money back.
Or not so politely.