An open public market requires an even playing field. Some participants may have bigger computers, or a millisecond head start on data.

But at least all investors theoretically have access to the same information and analysis.

The idea is that each participant is able to balance risk and reward to suit their own tastes, using the same data.

Unless, that is, some players are allowed to put a thumb on one side of the scales for their own advantage…

On Monday of this week, Goldman Sachs Group Inc. (NYSE: GS) issued an interesting reversal of the firm’s normal bearish stance on oil prices. The investment bank released what most are calling a mildly bullish report on the price of crude.

Now, I normally ignore what Goldman is saying, and so should you. The reasons are simple: (1) their estimates are hardly objective; and (2) they usually miss the boat.

In this case, that’s more true than ever…

Reason No. 1: Goldman Sachs Makes Money from Their Own Predictions

is the “investment sage” you might recall that boldly proclaimed $20 a barrel oil was coming. That never happened, of course, but Goldman won the race to deception anyway.

That’s because the investment bank has been one of the largest runners of oil shorts.

That’s where point (1) from above comes in: If Goldman can get even a segment of investors to believe what its saying and bail on oil, the investment bank promptly makes a profit. This is not detached analysis – it’s self-serving spin.

This has been a pet peeve of mine for some time.

Talking heads on TV are usually obliged to disclose any personal conflicts. Often appearing on the screen below the bellowing pundit is a box. That box states whether the pundit owns any of the stocks or commodities being discussed, any relationship in which the analyst (or his/her firm) makes a market for or advises the company, and the like.

These are also intended to extend to the pundit’s or analyst’s family members, although that has always been a matter difficult to pin down for anything beyond straight stock ownership.