The U.S. dollar and financial system has already exploded. There should be no talk about how the crisis of system is “coming”—it’s already here. The crash of the dollar system will cause an explosion of the entire international financial system. Already, pieces of the exploded planet are flying around like asteroids—but only a fool would say that the asteroids are “going to cause” the explosion! The planet has exploded! Only a fool or a liar would say anything to the effect of “a trend toward a coming crisis.” The catastrophe is now.
The following news slug is one of those pieces:
November 20, 2007--Goldman Sachs, which has bet on the collapse of the mortgage-based bubble, has provoked another market collapse yesterday, by announcing that there will be a further $43 billion of write-downs by three of the biggest banks, by the end of 2008.
Goldman's figures are a linear forecast and therefore conservative, but they concentrate on a few players: Citigroup, Merrill Lynch and Morgan Stanley, whose shares collapsed yesterday after this announcement. "Goldman forecasts a $22 billion write-down for Citigroup, split between $11 billion in the fourth quarter of 2007 and the rest in 2008. This brought Citi's shares down 5.1% by midday yesterday, taking its loss for the year to more than 42%. Goldman also expects write-downs of $13 billion for Merrill Lynch and $8 billion at Morgan Stanley, shared over the final quarter of 2007 and 2008," reported the Financial Crimes.
Goldman's judgment on Citigroup looks like the Bravo's Stiletto-stab at acting CEO, former Treasury Secretary Robert Rubin: "This firm lacks leadership at the present time and has a disproportionate amount of exposure to subprime mortgages and collateral debt obligations." Citigroup (was) the largest bank in the world in terms of “assets,” but those assets are now shrinking at an accelerated pace, together with its equity capital.
Goldman Sachs is playing the same game as the jewel thief on board of the Titanic, whose booty was later found among the wreckage resting under the sea. Goldman is reporting as assets, gains from derivatives bets which will be never paid, against counterparties which Goldman itself is helping to sink.
Continue to keep in mind LaRouche’s long term economic forecast and his solution.
