It's all Goldman Sachs' fault says Matt Taibbi

[Jan Klimkowski]

As if to prove that Goldman Sachs is now entirely shameless about its raison d'etre - namely to ensure that GS's speculation, looting and bad bets are compensated by the taxpayer through Central Banks - we have this:

"Italian government bonds are fundamentally attractive"

Goldman Scrambles To Tell ECB What To Say Later Today

Submitted by Tyler Durden on 08/07/2011 13:34 -0400

As expected, Goldman, who came up with the promptly imploding plan of using the EFSF as a EUR rescue mechanism, is now scrambling to come up with yet another Eurozone rescue plan.

Below is the full text of what Francesco Garzarelli just released as a prompt to Trichet. Gone are the days of nuance: the note is titled brutally enough Europe Should Say That BTPs Are Cheap'.

Just in case anyone is confused of course. We expect the ECB head to pretty much read from this note to "clients" verbatim.

In a nutshell, Goldman's view is that, "Italian government bonds are fundamentally attractive, but we have reached a point where only the European authorities can credibly signal this is the case. Secondary bond market purchases by the ECB are needed to stabilize markets in the near term. The 10-yr BTP spread to Bunds could fall back to around 200-250bp in such a scenario." Sure. It will work. For a week or so. Then what?

Full Goldman note: can be seen at Zero Hedge.