IggyPride00 wrote:
It is amazing to think this kind of stuff is still legal right now, and I am not even sure this new regulatory bill outlaws such practices.
From some internal emails the Government just released about Goldman that further prove how they have the market rigged.
The firm made money on the upside -- originating, securitizing and selling subprime mortgage-based securities to investors -- and on the downside, thanks to the insurance.
"Bad news," a May 17, 2007, email began from one Goldman employee to another. A security the firm had underwritten and sold had just lost value, costing Goldman about $2.5 million.
Further down in the email, the employee, Deeb Salem, wrote "Good news...we own 10mm protection...we make $5mm."
The firm made $5 million betting against the very securities it had underwritten and sold.
What is most sickening is that we paid them 100 cents on the dollar for their "protection" through AIG on corrupt products they initiated.
We might as well start selling homeowners policies to arsonists if this kind of stuff is allowed.
It is a HuffingtonPost article (a liberal site) but they used govt. released emails to build the story around so lets not just attack the source instead of the content.
http://www.huffingtonpost.com/2010/04/24/goldman-sachs-emails-big-short_n_550547.html
This is a good example of what P-town and I are looking for when you start a thread about a news link