"'The simultaneous selling of securities to customers and shorting them because they believed they were going into default is the most cynical use of credit information that I have ever seen,' said Sylvan R. Raines, an expert in structured finance at R&R Consulting in New York. 'When you buy protection against an event that you have a hand in causing, you are buying fire insurance on someone else's house and then committing arson'," Gretchen Morgenson and Louise Story at the NYT, 24 December 2009, link:
Yves Smith (YS) comments on this article at her Naked Capitalism, 24 December 2009, are well worth reading, link: http://www.nakedcapitalism.com/2009/12/goldman-deutsche-and-the-destructive-use-of-synthetic-cdos-comes-into-focus.html.
1 comment:
We all know Goldmanites would short their mothers for anything over a 100bp.
Lord Blankfein probably thought he was doing "God's work" by blowing up those "low credit score" securities...
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