Goldman Sachs' magic trick - December disappears!

[Martim Silva]

We all heard about the great results that Goldman Sachs posted today, which far exceeded the analysts' expectations...

However, in his blog at the NYT, the Economics Nobel Prize calls the attention to an article by Floyd Morris, reported via Ritholz - the real reason why Goldmans' earnings were so good is due to magic: they made the whole of December disappear!

Quote:

"Yesterday, we noted that the bulk of their [GS] profits had come from AIG transfer payments — the AIG 100% payouts funded via bailout monies that saw Goldie as one of the largest recipients. Floyd Norris notes that most of the AIG effect was in December. "For the first quarter, the total A.I.G. effect on earnings was, in round numbers, zero."

How is it possible that this occurred? Isn't GS on a December to February calendar? Well, there is a small asterisk about that. It seems that GS is moving from a December to a quarterly calendar. Meaning their latest Q is January thru March.

But what of December, with all t he AIG monies and the comparison to the strong December 2007 and all?

In a word, Orphaned:

   Goldman's 2008 fiscal year ended Nov. 30. This year the company is switching to a calendar year. The leaves December as an orphan month, one that will be largely ignored. In Goldman's news release, and in most of the news reports, the quarter ended March 31 is compared to the quarter last year that ending in February.

    The orphan month featured — surprise — lots of writeoffs. The pre-tax loss was $1.3 billion, and the after-tax loss was $780 million.

    Would the firm have had a profit if it stuck to its old calendar, and had to include December and exclude March?

Truly astounding . . . the word Chutzpah simply does not do it justice . . ."

Floyd: http://norris.blogs.nytimes.com/2009/04/14/the-case-of-the-missing-month/

Ritholz: http://www.ritholtz.com/blog/2009/04/how-to-puff-up-earnings-goldman-sachs-style/

Krugman: http://krugman.blogs.nytimes.com/

[Caliga]

Jews =

[Neil]

Sneaky.  Still, I would imagine that draconian new accounting regulations brought in by the Neil Administration will solve this sort of sorcery.

[Caliga]

Sneaky.  Still, I would imagine that draconian new accounting regulations brought in by the Neil Administration will solve this sort of sorcery.

But don't Jewish sorcerers already do your bidding?

[MadImmortalMan]

Truly astounding . . . the word Chutzpah simply does not do it justice . . .

Nope. You also need the words conspiracy, Zionist, protocols, Bilderberger, Freemasons, Bubonic Plague and "alleged holocaust".

[Neil]

Sneaky.  Still, I would imagine that draconian new accounting regulations brought in by the Neil Administration will solve this sort of sorcery.

But don't Jewish sorcerers already do your bidding?

So because someone does my bidding means I shouldn't make them obsolete and take their power from them?

They're beholden to me, not vice-versa.

[Razgovory]

Is this one of Martim Silva's Portugese fascism thingies?

[Neil]

Is this one of Martim Silva's Portugese fascism thingies?

I would assume so.  Always going on about how good he had things when Carlos Santana ran the country.

[grumbler]

Is this one of Martim Silva's Portugese fascism thingies?

I'd have to read it to find out, so i guess that will forever be a mystery to me.

[Admiral Yi]

We all heard about the great results that Goldman Sachs posted today, which far exceeded the analysts' expectations...

I hadn't until today.

[Weatherman]

Is this one of Martim Silva's Portugese fascism thingies?

I would assume so.  Always going on about how good he had things when Carlos Santana ran the country.

Free concerts for everyone?

[DGuller]

They've already destroyed a lot of wealth. Been there, done that (very well).  Months of the year are a logical new challenge.

[Crazy_Ivan80]

December needs to be destroyed so it can be renamed.
And december is right in time for the birth of christ, who is the messiah after all.
A bit like how Obama is the messiah in today's america.
So it's only logical that December will be renamed to Obamy

[Martim Silva]

Truly astounding . . . the word Chutzpah simply does not do it justice . . .

Nope. You also need the words conspiracy, Zionist, protocols, Bilderberger, Freemasons, Bubonic Plague and "alleged holocaust".

That bit was a quote from the article, not mine [hence the "..."]. And the author is jewish, which is why he used the word 'Chutzpah'. Read the articles.

(Seriously people, are you so nuts that you even consider declarations written by Jews as 'anti-semitic' if you think they were written by gentiles? It denotes a serious level of paranoia)

[garbon]

Hopefully Morales and his Anorexia Tour will save us!