Goldman has already lost another -9% today, and the talking heads like David Faber at CNBC are saying whatever it is that they say. Marcus Goldman can't be smiling down on how this story is starting to unwind. Taleb’s “narrative fallacy” is alive and well in terms of the media seeking explanations as to what is going on here. How about this: GS and MS are now bank holding companies who cannot earn 2007’s returns, ever again.
When Chris Cox and his cronies banned short selling, they were only postponing this inevitable fundamental realization. Shame on them.