Goldman Sachs posts loss since going public in 1999

December 16, 2008 by · Leave a Comment
Filed under: Stock Market News 

No doubt that we will see continue losses and write-downs in the future until they finish de-leveraging and find a sustainable balance in their business model.  It is sad that all the investment banks have either gone out of business or are now commercial bank holding companies.   Capitalism is not dead but it needs a second to catch its breath.  

This is what happens when people get too greedy and they lose all fear.   It is always a balance of Fear vs. Greed.  The is the natural balance that keeps the free market in check.  That is why it is bad when government start intervening and picks winners and losers, it through everything out of whack and make private capital evacuate the market until the rules quit changing every other day. 


Goldman Sachs Group Inc reported its first quarterly loss since going public nine years ago as plunging values of stocks, debt and real estate caught up with a Wall Street leader that until recently had sidestepped the worst of the crisis.

But investors had braced for even worse results and appeared relieved by the numbers as Goldman shares rose 11.6 percent on Tuesday, lifting the broader U.S. stock market.


The bank posted its worst quarterly trading results in a decade, signaling that the engine that fueled so much of the bank’s profits in recent years may be sputtering.


Writedowns topped $5 billion, although Goldman’s management emphasized that declines in the values of its assets may reverse over time.

Source: Reuters


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