Goldman Sachs' Invasion of Privacy - 01/22/10

Goldman's escape route might be going private later in the year.

"Goldman Sachs goes private. Goldman Sachs (GS) stock drops back to $125 to $130 a share, within $15 of the warrant exercise price that Warren Buffett received in Berkshire Hathaway's (BRK.A) late 2008 investment in Goldman Sachs. Sick of the unrelenting compensation outcry, government jawboning and associated populist pressures, Warren Buffett teams up with Goldman Sachs to take the investment firm private. The deal is completed by year-end."

-- Doug Kass, "20 Surprises for 2010" (surprise No. 8)

This morning, Jim "El Capitan" Cramer crafts a thoughtful piece on how our populist government is using Goldman Sachs as a scapegoat and the administration's general lack of understanding of the cause and effect of the financial crisis during 2008 to 2009. It would be instructive for the administration to read and learn from Jim's opener today.

Jim's missive is a good connector to my opening missive this morning and one of my surprises for 2010 (above) that Goldman's escape route might be going private later in the year.

My idea is getting some talk now. David Reilly wrote about my forecast on both Bloomberg and Business Week today.

"And some investors have already been considering such a possibility. Back in December, < Douglas Kass, general partner of hedge-fund firm Seabreeze Partners Management Inc., listed Goldman going private as one of his predictions for 2010."

-- David Reilly, Bloomberg

Position: No positions in stocks mentioned