FOOD FOR THOUGHT. NEXT LIKELY GS TARGET FOR PROFIT?

They seem to be at center of FEEDING trough since 1900's, and now thanks to hank Paulson (EX GS CEO) major competitors are gone, many EX GS employees at every orifice of GOV power and influence.....what stands in their way? NOTHING.

AS the avg American has either lost job, home or both, and has seen net worth plummet, GS has become biggest bank, biggest profits, biggest influence, biggest bonuses.

And so I ask myself what is next? The only left intact longest running bull market, well it WILL eventually BURST, they all do, and IMHO that has to be the BOND BULL/BUBBLE.

This hit me, at the VERY time GS has profitted and many others from the market rally in 2009, AVG JOE has stuck head in sand and it is reported bought into Bond Funds in HISTORIC RECORD AMOUNTS!!!!!!!!! and bought scantilly into equity funds an historic imbalance.

AT same time you can see HOW LONG (early 1980's) interest rates have been FALLING hitting generational lows as financial crisis hits it ZENITH into 2009. It is also true the "little guy" gets screwed every time, is buying when should be selling, is selling when should be buying, and now is in BOND FUNDS in RECORD AMOUNTS.....near RECORD LOWS in yields and RECORD HIGHS in DEMAND FOR DEBT...and GOV deficits.......as the MAIN SUPPORT for said market is FED PRINTING AND BUYING....and that won't last forever......at same time FOREIGN buyers are scarce....as our needs for debt RISE....to unseen heights.....now that's a crowded trade....

The BOND MARKET IS EXPONENTIALLY LARGER THAN STOCK MARKET, what IF there IS a bubble and it has already or will soon BURST? well I am guessing you don't want to be there left HOLDING THE BAG.

Is my thinking wrong here? VIX hit generational HIGHS, fear sent most to the comfort of bonds....that was thevery point the smart money BEGAN BUYING THE HATED STOCK MARKET....volume has NOT BEEN THERE reaching a high in MARCH....prices keep rising.....there has not been a new high in new highs since aug.

I am NOT saying stock cannot continue to rally, what worries me is the explosion of the BOND MARKET which would seem inevitable and may already be in progress.

And Banks still benefit from not having to MARK TO MARKET the crummy CDO's and mortgage paper still held or whomever holds it....value has not yet stabilized.....and is not being shown at fair value nor maybe even on the books (off balance sheet).

It seems likely to me that after such a wonderful 2009 for stock (as in 2003 and 2004 following flat) a decline or consolidation may be under way and returns in stocks harder to find......you know GS is thinking how to make money...right now.

Is the bond market an accident waiting to happen? I HOPE not, I THINK so.

Duratek