Friday, April 16, 2010

Fraud and Investment Bankers

Barely 18 months ago, in October 2008, Investment bankers had brought the world to the brink of destruction.Their unbounded greed had no parallel in the history of mankind.

As time passed by, it seemed that greed had won the day, with no penalties imposed on these people.

Today, justice seems to have started its work. Bloomberg says:

"Goldman Sachs was sued by U.S. regulators for fraud tied to collateralized debt obligations that contributed to the worst financial crisis since the Great Depression. The firm’s shares tumbled as much as 16 percent and financial stocks slumped. "

I do not think this is the end. There will be many more such investigations, cases, attempts to bring the perpetrators to justice. And, it will happen in India, also. [we did not have subprime problems, but we have the same kind of greed].

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The Markets are not perfect, but they are the best we have

Note how the Nifty remained in a narrow trading range, then broke down from the range on Thursday. A breakout / breakdown from a trading range is a significant technical event. My recent posts have dsicussed this.

4 comments:

Anuj said...

Hello Sudarshan ji,
You have been critical of investment bankers and specially GS,ever since the crisis started.
Now that SEC has taken the legal route..people all around the wold in their blogs and websites,will criticize GS.
Your foresight in analyzing these events will always be appreciated.
Good luck for all your future endeavors...Cheers

tushki said...

sir suggest me the level for bank nifty...i had short sell it at 8500 as i had told u before...pls tell me where should i exit??

Bhargav said...

Mr.sudarshan Ji
i have 3000 ARVIND CHEMICAL @18.5
todays its on 13, i am long term investor.guide me

Raunak Agarwal said...

It has to be seen how market's react to such events. Knee jerk reaction would be there, but whether it will turn into something big that only time will tell. Across the board in Asia, market's are heavy now. Won't be surprised if equities in Asia correct 10%-15% from these levels. Technical and Fundamental Indicators do suggest these kind of moves.