Beware of the Drowning Golden Socks

Anyone who has been through lifesaving class knows that a drowning person, in an effort of self preservation, will try to save himself by pushing you under.  Goldman Sachs could be drowning and we should be on the lookout for GS to try to save itself by grabbing anyone nearby.  We saw the first evidence of this last week when an attempt was made to implicate Warren Buffet.  Anyone in finance faced with drowning would pick Buffet as a good place to find some buoyancy.

Deflecting to the system is another defense that Goldman is almost certain to invoke.  So watch for the everyone was doing it/ if you arrest us you have to arrest everyone defense.

We should expect this same dynamic to play out in other areas where titans are threatened.  After all, the mightiest do the most amazing things to hang on to their power, and the most desperate things on the way down.

I would also put Facebook, Google, Apple, and maybe even China in the category of titans.