Remember that kid in sixth grade who was smarter than you, could run faster than you, wore cooler clothes than you, and, to top it off, couldn't help pointing out all of your weaknesses?
Goldman downgraded rival bank Citigroup
Speak for yourself
Yes, Goldman has held up remarkably well amid financial-market mayhem, but downgrading its fellow banking pals could be risky business. Let's ignore that it's less than two months since Goldman upped its rating on financial stocks for nearly the exact opposite reason it downgraded Citi -- recapitalizations -- and recognize that, even if it's right, spreading fear in the financial market could come back to bite Goldman in more ways than one.
If the banking sector exited its boneheaded debt positions in an orderly fashion, the results would undoubtedly be much more subdued than we've seen thus far. But since nobody wants to be the last one holding the bag, whispers of trouble reverberate throughout the market and can pummel even those -- like Goldman -- that aren't in much trouble by any normal standards. Even though some banks, such as Citi, Wachovia
Is Citi in trouble? Good chance. But come on, Goldman, be careful what you wish for -- you just might get it.
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