What Goldman Sachs is saying about the US government shutdown and debt ceiling

Summary:

(1) ...the Treasury expects to exhaust its borrowing capacity by October 17. We expect the Treasury’s cash balance to be depleted no later than October 31 and possibly quite a bit sooner.

(2) After October 17, the Treasury can keep conducting auctions to roll over maturing securities, but it cannot increase outstanding debt.

(3) ...we do believe that the Treasury could ensure that enough cash was available to make interest payments on Treasury securities.

(4) ...fund redemptions might broadly increase due to end-investor concern, prompting liquidations of Treasuries by money market mutual funds.

(5) If the debt limit is not raised before the Treasury depletes its cash balance, it could force the Treasury to rapidly eliminate the budget deficit to stay under the debt ceiling. We estimate that the fiscal pullback would amount to 9% of GDP. If this were allowed to occur, it could lead to a rapid downturn in economic activity if not reversed quickly.

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Now the war in Libya makes sense!

I just got a chance to read Liz Rappaport's WSJ article from yesterday Goldman's Paperwork Flub

Goldman Sachs Group Inc. had no standard contracts in place to protect itself when it made $1.3 billion in options trades for Libya's sovereign-wealth fund controlled by Col. Moammar Gadhafi, according to people familiar with the situation.

Having known about Obama's campaign and White House connections to Goldman Sachs, I just had to check it out and, sure enough, wouldn't you know:

With all the money wizards of GS and the Obama Administration swapping bunks, is it possible that the financial rip off of Qaddafi was about to become an embarrassment?

It never ends with this guy.

For a really detailed view of all his shenanigans up through the fall of 2010, be sure to read David Limbaugh's Crimes Against Liberty.

Short-selling warns markets that an asset bubble is about to burst

From WSJ: The Misguided Attack on Derivatives

Glenn Beck on Obama criticizing "Fat Cat" bankers on Wall Street including Goldman Sachs

VIDEO: Glenn Beck- January 28, 2010 (Part 4/5)

Obama Advisors from Goldman Sachs

Dianna Farrell: Deputy Director, National Economic Council
Former Goldman Sachs Title: Financial Analyst

Stephen Friedman: Chairman, President's Foreign Intelligence Advisory Board
Former Goldman Sachs Title: Board Member

Gary Gensler: Commission, Commodity Futures Trading Commission
Former Goldman Sachs Title: Partner and Co-head of Finance

Robert Hormats: Undersecretary for Economic, Energy and Agricultural Affairs, State Department
Former Goldman Sachs Title: vice Chairman, Goldman Sachs Group

Phillip Murphy: Ambassador to Germany
Former Goldman Sachs Title: Head of Goldman Sachs, Frankfurt

Mark Patterson: Chief of Staff to Treasury Secretary Timothy Geithner
Former Goldman Sachs Title: Vice President for Government Relations

BARACK OBAMA (D) Top Contributors

This table lists the top donors to this candidate in the 2008 election cycle. The organizations themselves did not donate, rather the money came from the organization's PAC, its individual members or employees or owners, and those individuals' immediate families. Organization totals include subsidiaries and affiliates.

Because of contribution limits, organizations that bundle together many individual contributions are often among the top donors to presidential candidates. These contributions can come from the organization's members or employees (and their families). The organization may support one candidate, or hedge its bets by supporting multiple candidates. Groups with national networks of donors - like EMILY's List and Club for Growth - make for particularly big bundlers.

University of California.........................$1,591,395
Goldman Sachs....................................$994,795
Harvard University.................................$854,747
Microsoft Corp......................................$833,617
Google Inc...........................................$803,436
Citigroup Inc.......................................$701,290
JPMorgan Chase & Co..............................$695,132
Time Warner........................................$590,084
Sidley Austin LLP...................................$588,598
Stanford University................................$586,557
National Amusements Inc.........................$551,683
UBS AG..............................................$543,219
Wilmerhale Llp.....................................$542,618
Skadden, Arps et al................................$530,839
IBM Corp............................................$528,822
Columbia University...............................$528,302
Morgan Stanley....................................$514,881
General Electric....................................$499,130
US Government....................................$494,820
Latham & Watkins................................$493,835

From OpenSecrets.org

20 senators demand probe of health-care vote 'threat'

Did the President really threaten to shut down Offutt AFB...headquarters of U.S. Strategic Command if Senator Nelson didn't vote "yes" on health care???