Goldman Sachs – Buy or Beware?

I read articles at cnbc.com daily and today I noticed the Fast Money Halftime Report asks readers: “Buy Goldman Ahead of Earnings?”  The report went on to say that GS is up today after Bank of America (BofA) analysts upgraded the institution to a “buy” and raised its price target to $175 (currently trading around $144).  The overall synopsis from the FM traders was that GS is best of breed in its sector, but that they would wait for a pullback before buying at these levels.

What I want to know is, was GS responsible for the most recent bubble burst?  Not only that, are they responsible for every bubble and bust during the past century?  Seems like a lot of pressure is being put on GS, but according to this Rolling Stones article, Matt Taibbi stated the following:

In Rolling Stone Issue 1082-83, Matt Taibbi takes on “the Wall Street Bubble Mafia” — investment bank Goldman Sachs. The piece has generated controversy, with Goldman Sachs firing back that Taibbi’s piece is “an hysterical compilation of conspiracy theories” and a spokesman adding, “We reject the assertion that we are inflators of bubbles and profiteers in busts, and we are painfully conscious of the importance in being a force for good.” Taibbi shot back: “Goldman has its alumni pushing its views from the pulpit of the U.S. Treasury, the NYSE, the World Bank, and numerous other important posts; it also has former players fronting major TV shows. They have the ear of the president if they want it.” Here, now, are excerpts from Matt Taibbi’s piece and video of Taibbi exploring the key issues.

Matt goes on to state that GS is everywhere and that it is “wrapped around the face of humanity.”

I do not currently have an opinion on this topic; however it is an interesting read to say the least.

MF