Markets drop as Congress bares Goldman its fangs
If there is any question about how the markets initially have taken the Goldman dog and Pony show, look no more. Like clockwork the markets fell after it was clear that the lawmakers took off the gloves and brandished machetes.
This is what Goldman was expecting:
This is what they got:
What they got was presumptuous Senators treating them like theives, Vegas bookies, liars and cheaters, who are always out to make a buck. After hearing McCaskill testify it became clear that congress was not trying to punish success instead of conduct an honest inquiry. The markets dropped like a rock.
Some people blamed the Greek debt crisis, but the timing was a little too suspicious to lead me to believe that such was the only factor. The market would have opened lower with much of that noise already built in.
Funny thing, many of the articles did not even mention what was happening to the flagship of the US financials, and how it might effect the markets. I say hogwash. It was either sloppy reporting or blissfull ignorance knowing that financial reform is on Congress's agenda.
See market commentary from Yahoo.