Wednesday, November 4, 2009

Goldman's Bets


Goldman Sachs has over 1.3 million derivative contracts, which explains why regulators won't do anything meaningful to reign in such weapons of mass financial destruction.

Goldman's 3rd quarter 10-Q highlights general betting areas. They include:

Interest rates-- 1-5 years and 10 years or greater
Currencies-- 0-12 months and 1-5 years

Credit derivatives-- 1-5 years and 5-10 years

Equities-- 0-12 months and 1-5 years

Commodities-- 0-12 months and 1-5 years

Given Goldman's ability to make money trading 98% of the time, how might they make their financial bets come true?