Alan Brazil is a strategist at Goldman Sachs who has distributed a report to their institutional clients on August 16th outlining an impending worldwide economic collapse. Considering the 5.27% drop in the stock market in the last 30 days, it seems like the institutional investment brokers believed this report.
The graph below also shows the impact on gold as it rose over $1900/oz in the few days following this report’s release.
A Private Note to Hedge-Fund Clients Gives a Strategist’s View; Ways to Gain From Global Pain
A top Goldman Sachs Group Inc. strategist has provided the firm’s hedge-fund clients with a particularly gloomy economic outlook and suggestions for how these traders can take advantage of the financial crisis in Europe.
In a 54-page report sent to hundreds of Goldman’s institutional clients dated Aug. 16, Alan Brazil—a Goldman strategist who sits on the firm’s trading desk—argued that as much as $1 trillion in capital may be needed to shore up European banks; that small businesses in the U.S., a past driver of job production, are still languishing; and that China’s growth may not be sustainable.
A longer report is shown at the end of this article. What actions should be taken to prepare for this collapse? Gold has experienced a correction but the price of gold is expected to be $2100/oz by the end of the year. This may also be the reason that the United States has stopped selling all gold coins. DXD is an ultrashort Dow stock that makes money if the market declines. Staples like food, clothing and essential supplies will only increase in price as they have over the past three years.
Goldman Sachs is doing it again. Goldman is telling the public that everything is going to be just fine, but meanwhile they are advising their top clients to bet on a huge financial collapse. On August 16th, a 54 page report authored by Goldman strategist Alan Brazil was distributed to institutional clients. The general public was not intended to see this report. Fortunately, some folks over at the Wall Street Journal got their hands on a copy and they have filled us in on some of the details. It turns out that Goldman Sachs secretly believes that an economic collapse is coming, and they have some very interesting ideas about how to make money in the turbulent financial environment that we will soon be entering. In the report, Brazil says that the U.S. debt problem cannot be solved with more debt, that the European sovereign debt crisis is going to get even worse and that there are large numbers of financial institutions in Europe that are on the verge of collapse. If this is what people at the highest levels of the financial world are talking about, perhaps we should all start paying attention.
There is a tremendous amount of fear in the global financial community right now. As I wrote about the other day, the financial world is about to hit the panic button. Things could start falling apart at any time. Most of these big banks will not admit how bad things are publicly, but privately there is a whole lot of freaking out going on.
According to the Wall Street Journal, Brazil believes that “as much as $1 trillion in capital may be needed to shore up European banks; that small businesses in the U.S., a past driver of job production, are still languishing; and that China’s growth may not be sustainable.”