via Calculated Risk: Goldman Sachs Forecasts “Deeper” Recession
Does Goldman becoming a Bank indicate their expectation of a strong regulatory backlash at the end of all this?
If so, won’t they exert positive pressure in Washington toward more regulation. These guys are the smartest guys in the room so if they see a deeper recession they will have begun planning already.
As with any de(e)p recession, we can also expect deeper economic pain and the resulting political tide of reform. If Goldman is now predicting just that, then they need to adapt quickly and insure the rules change with them to force out competitors.
They now have billions of dollars and the political control to buy as many assets as it can as they get cheaper and cheaper.
On another note, are they still predicting $200 oil by the end of the year…I wonder if they can start a war?