My take on Ben’s article, is that he is saying that Goldman, with help from the bond rating agency’s (moody’’s etc) inflated these CMO’s, and sold banks these “products” knowing more that the banks about them (as goldman had done due diligence and performed their own ratings on these CDO’s). Goldman essentially unloaded this junk on the banks, and knowing how bad these products were, began to actually short the banks that they were selling these products to.
krogers, correct. not only does gs short the banks and institutions that they have sold these products too, but shorted the product indexs. in my world it’s called stealing.
Thanks...you linked to this Ben Stein piece today or yesterday