Goldman Sachs' Twilight Zone

Is it simply strange coincidence that Goldman Sachs chose to publish a global economics report called "The Twilight Zone Between Boom and Bust" around the same time it is finding itself under fire after accusations that it has (say it with me now, kids, we all know the line by now) "engineered every major market manipulation since the Great Depression"? That doesn't make sense.

But hey, if anyone is qualified to write about the Twilight Zone Between Boom and Bust, I suppose it would be GS.

Goldman Sachs wrote a treasure map to the Twilight Zone of Booms and Busts because they would know (via Newsweek and yay with the MSM coverage on all of this):

How can we predict the next bubble? That’s the $64,000 question, and while nobody has an answer, Goldman Sachs made some interesting observations in a research paper they put out this week entitled “The Twilight Zone.” This is what the bank is calling the most sensitive period in the economic cycle, the one that comes right between a boom and a bust.

Previously, economic cycles were basically thought to have just two parts─theoretical models that the rocket scientists in major banks use to try and forecast the future generally have a “boom” line and a “bust” line. But the Goldman paper posits another period─the Twilight Zone period─which generally lasts between a few months to a year. It’s during this tipping-point period that investors can find clues to the next bust.

Read the rest here