With Bearn Stearns, Lehman Brothers and Merrill Lynch out of the game, Goldman Sachs is not just the hand that rocks the financial market cradle, it’s simply the financial market itself. If you ever wondered how a monopoly looks like in chart form, here it is:
In the first quarter of 2010, Goldman made money on each and every single trading day. That’s right, the firm did not record a loss of even a cent on even one day in the last quarter. That’s 63 days profitable out of 63 trading days. Goldman is now the market – or, more in line with modern market reality, Goldman is the house, it controls the casino, and always wins. Congratulations America: you now have far, far better odds in Las Vegas that you have making money with an E-Trade account.
Adding to the “Alice in Wonderland” insanity of this announcement, the firm made over $100 million daily on 35 different days. Of Goldman’s $9.7 billion in total Q1 revenue, 76% came from trading. So forget investment banking, forget underwriting, forget advisory: over three quarters of the firm’s value is based on being the house to the biggest and most corrupt casino in existence.