Whether it’s Spring, it’s sweater weather

So here in NYC today we are celebrating Jan. 108, 2018.

The weather here is anything but Spring. I believe we will probably have a frost on the lawn to celebrate Earth Day this weekend. Continue reading

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Cohn’s departure impact: Meh

Well what do you know, the sun came up Thursday morning just as it did before Gary Cohn was fired for insubordination from the White House for his Tariff Tantrum.

Oh and the market sell off that the media warned about? Futures are green this morning after a tepid down day on Wednesday.

Cohn was asked to step aside after failing to voice support for the president’s directive to place tariffs on imported steel and aluminum. In an Oval Office showdown Cohn declined to answer Trump when asked.

The key word in Cohn’s title was White House Economic ADVISOR. Pretty foolish of him if he didn’t realize that the President takes advice from many quarters and decides.

The alleged architect of the Trump tax overhaul, which certainly is a misnomer since much of the tax plan was devised during the campaign, while Cohn was still finding busy work to do at Goldman Sachs.

And two points on these dreaded tariffs. One, Trump said on the campaign that he would try to help the little remaining metal-processing industries left in the rust belt states and two, the import taxes charged for the metals is more token than hardship for the manufacturers buying the raw material.

What I don’t understand is how Cohn and the media were surprised by the tariff move. The Trump administration has always been more nationalistic than globalist on trade agreements and economic initiatives.

So all of a sudden now a trade war is striking fear in the hearts of Washington? Or is it that Cohn was a Democrat?

Anyway, good riddance. Gary take your now tax-free half a billion dollar buyout from Goldman and ride off into the sun set, because the sun did come up today.

Bitcoin’s Come-To-Jesus moment

Ironically, bitcoin investors are having a Come-To-Jesus moment as the globe begins its slowdown to celebrate Christmas.

The cryptocurrency is now trading at $13,650 off from its $19K+ highs earlier this week. The low for Friday was put in at the $12,500 level. Continue reading

New trioka at the Fed may get you(r) interest

What happens when Cerberus — the three-headed beast guarding the gates of hell — loses all of its heads?

We’ll find out early spring of next year as The Federal Reserve could be without its present Chairperson, Vice Chairperson and head of the New York Fed. Continue reading

Goldman may be running its own “Storage Wars”

How close are we to seeing Goldman Sachs CEO Lloyd Blankfein standing in front of storage unit telling perspective bidders, “You can just look in, don’t touch, don’t go in.”

That the mental image I have from a story moving Thursday morning of Goldman repossessing a 217-ft luxury yacht from a former (i assume) client down in Palm Beach, Fla., according to a WSJ.com story.

Goldman, Morgan Stanley and UBS wealth management units have been active in lending cash to their clients against some esoteric belongings, such as wine collections, art collections and equity portfolios.

These banks are pushing these loans for two very specific reasons. They have an existing relationship with the client and knows his asset holdings. The banks also keep more of the profits from these loans, since there are little broker fees or other charges against the loan.

Goldman’s private bank has quadrupled its overall lending balances since 2012 to $29 billion. Morgan Stanley wealth-loan balances are up 420% since 2012 to $74 billion, according to the article.

To get back to the yacht, the luxury boat is listed for $39.9 million, according to broker​. The outstanding balance of the loan owed to Goldman is roughly $28 million. So there is some wiggle room to haggle with Lloyd.