It’s true. Starting sometime next year, Goldman Sachs Group Inc. (NYSE: GS) – the poster child Wall Street investment bank of the 1% of the 1% of the superrich – is going to lend money to the remaining 99% of consumer borrowers.
Don’t bother getting all suited up with hat in hand for a visit to a local branch of Goldman Sachs Bank USA (with its $73 billion in deposits) – there won’t be one.
And don’t even think about walking into the bank’s office at 200 West Street in New York City – you won’t get passed security.
However, with Goldman’s new lending strategy, that walk-in access won’t be required.
Goldman Sachs, you see, is getting into online banking.
This new venue of borrowing was known as P2P, or peer-to-peer lending – until big money transformed the P2P moniker into “power-to-profit.”
Suppose I’m the manager of a giant hedge fund. Suppose I’m soliciting you to come into my fund with a few billion of your $100 billion net worth.
Suppose we’re good friends.
You want to come in because you trust me and you know I know how to make money.
However, you’ll only come in if I tell you how the secret trade I’m working really works.
Okay, I’ll tell you. But you can’t tell a soul. Not because what I’m doing is illegal, but because only a few other guys are doing this, and we all know each other, and we’re kind of all in this together – wink, wink – and we don’t want anyone else in our game.
Rattlesnakes rattle their tails as a warning. It’s their way of saying, “I’m ready to attack you to defend my ground,” which really means defend myself.
All politicians are snakes. And some of them are rattlesnakes – but only if they have to be.
Most of them would prefer to silently slither in and out of their offices defending their self-interests. But sometimes a politician has to rattle his tail because his constituents’ interests are threatened – meaning his campaign contributions (money) and votes are threatened.
Republicans have been doing a lot of rattling lately, since they are now the majority species in the deep, dark den known as Congress.
Me, I used to be a staunch Republican. I still adhere to the basic Republican principles of smaller government, lower taxes and a “constructionist” view of the U.S. Constitution, not an interpretive one.
But I’m disgusted with the Rattlesnake Republicans who are pandering to crony capitalists. Their greedy, pro-super-wealthy and big-business agenda isn’t about the good of the country, but about lining their own pockets and becoming super-wealthy themselves.
Last week, while wishing my newsletter subscribers at Capital Wave Forecast and Short-Side Fortunes a happy New Year, I warned them that 2015 isn’t going to be a happy-go-lucky year.
The one prediction I emphasized over and over was that volatility would be extreme.
We’re already seeing that today with the Dow Jones Industrial Average down more than 300 points and oil (based on West Texas Intermediate pricing) dipping below $50 for the first time since April 2009.
There are many reasons why volatility will be our constant companion in 2015. And there will be many opportunities to very profitably trade volatility – both on the way down and on the way up.
So today, I’m going to start showing you how to profit from volatility across all the asset classes that are going to make or break investors in 2015.