Forex Media News Station

2009/11/02

Government Sachs' GDP estimate

http://blog.secretsoftraders.com/?p=677

Certainly I have spoken about Wall Street banks in general lately and Government Sachs in particular, especially to friends, but one thing I don’t believe I have mentioned is Goldman Sachs’ amazing ability to change its economic forecasts with uncanny accuracy. Specifically, Goldman economist Jan Hatzius is able to massage his economic data just 24-hours before an important economic data point…AND deliver said data to the company’s “connected” clients…with the precision of oh, say, a Treasury Secretary. Does anyone wonder why GS is now called Government Sachs by nearly everyone?

Over the last several months I have noticed that the Government Sachs “update” of the all-important monthly jobs data estimates have been right on the money the prior day; released for the privileged few of course. This Houdini-like conjuring of the correct data has blown away the accurate-challenged economist on Fraud Street.

According to media reports the median estimate of Thursday’s GDP number is for 3.2% growth annualized. GS was in that range as well - until today. All of a sudden, with “new data in hand” (cough - phone calls to Tax-Cheatin-Timmy at Treasury - cough) the banksters at Government Sachs have a lower estimate of 2.7%.

When the data is released worse than expected, you won’t be surprised.

Trade well and follow the trend, not the so-called “experts.”

No comments:

Post a Comment