Sunday, May 8, 2016

More Signs Of A Major Depression | Goldman to Extend Fixed-Income Job Cuts to 10% of Staff

By Michael Knight, contributing writer for

Cutting 10% of its staff in one area alone is surely an indicator that Goldman Sachs is in trouble, and then when you see they’re starting an on-line retail banking service which only requires a minimum of $1 to open an account, you’d have to start wondering how desperate are they for cash?

Bloomberg ran the story about job cuts, saying “Goldman Sachs Group Inc. is cutting more jobs in its securities units, extending reductions in fixed-income operations this year to roughly 10 percent of workers there …

“The dismissals in New York and London  (come after) trading revenue tumbled 37 percent to $3.44 billion in this year’s first quarter from a year earlier (and) the company’s stock is down 11 percent this year.  (Source)
The online bank story comes from NewsmaxFinance, which tells us that being able to open an account for as little as $1 is “a big shift for a financial powerhouse that has built itself around serving billionaires and giant companies undertaking mega-mergers.

The move comes on the heels of Goldman's acquisition of GE Capital's online deposit platform, after which it assumed about $16 billion of deposits from some 145,000 customers.

"Welcome to Peace-of-Mind Savings," reads the bank's pitch to consumers who desire federally insured savings accounts.” (Source)

Ironically, while laying off hundreds of their own staff, GS is seeking 10,000 small businesses to loan money to, because they “create jobs.”

The ill-informed might buy into the idea that Goldman is indeed offering peace of mind along with its savings interest rate of 1.05% - but what you’re not being told is that the FDIC, which supposedly insures deposits, doesn’t have anywhere near enough in its coffers to cover all the losses customers will experience when these mega-banks finally go under.

Another sign that there’s big rot in the banking world is that “Geneva prosecutors are widening their probe into Credit Suisse Group AG and one of its ex-wealth managers, identifying another three former employees as suspects in a case looking into unauthorized trades on the accounts of rich eastern Europeans …”

It’s another Bloomberg article (dated May 6)  which briefly mentions that “Credit Suisse is seeking to restore investor confidence as it accelerates a restructuring after unrelated losses on trading positions at its investment bank caught management unaware. Its stock declined 2.1 percent at 1:23 p.m. in Zurich, bringing its decline this year to more than 38 percent.”

A decline of 38% is definitely not insignificant.

Goldman Sachs may be cutting another 10% from its fixed-income staff, but consider that in relation to the fact that Wall Street as a whole eliminated 20,000 jobs – mostly from its trading desks – last year alone.

In most countries, 20,000 people is the size of a real city.

Bloomberg again:- “ … average daily trading among dealers in U.S. Treasuries is close to a seven-year low. 

“ … Despite the recent rebound in U.S. equities, volume in the S&P 500 Index is down 23 percent.

“ …  a “paralyzing volatility” that’s scaring away clients and caused industry-wide trading revenue to tumble to the lowest since 2009.”

“ … In Treasuries, long considered the deepest and safest market on the planet, average daily volume among primary dealers fell to $444 billion in April, just above its low in December 2009.

“ … Last quarter, trading revenue at the five largest US investment banks fell to a seven-year low.”

What these financial reports are telling us, though not in so many words, is that a full-scale recession is under way, and that inevitably means a very real Depression, perhaps of global proportions, in the not-too-distant future.

The up side could be, and probably will be, a rise in the price of gold and silver as those with money to spare get out of the markets and into metals that have traditionally held value in bad times.

The caveat to that is that you can’t eat gold and silver, so any investment in that area would best be left until other important investments are well in place – by which we mean food, water, shelter and medical supplies.

Warning:- if it’s gold or silver you’re considering, make sure it’s of the physical kind, and not just a paper certificate – because the Rothschilds and their banks have a way of ripping people off by selling more paper “gold” than there is physical gold available.  (Full explanation here).

And lastly on this subject, at least for the moment, underlying all this volatility in the world of banking and high finance, is the fact that there are forces in play which are intent on taking down the fiat money system in order to usher in a new global monetary system – along with a far better type of consciousness on this planet. But it’s important to be practical, and to be prepared to get through the inevitable chaos as the transition takes place.

About the author
Michael Knight has been a journalist since 1960.  He is editor of three weekly newsletters,  Future Times and Trends, New Earth News, and the North Star Newsletter, each with its own unique focus.

The first photo included in this article is by Alfy

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