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To: Toddsterpatriot
Goldman and Paulson ... knew just as much about the underlying mortgages as the buyer did.

If this is the case I'm thinking of, Goldman knew the underlying mortgages were crap and passed them off as AAA.

19 posted on 08/11/2012 10:08:22 AM PDT by DuncanWaring (The Lord uses the good ones; the bad ones use the Lord.)
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To: DuncanWaring
If this is the case I'm thinking of, Goldman knew the underlying mortgages were crap and passed them off as AAA.

I'm pretty sure Goldman isn't a rating agency.

Goldman and Paulson had an opinion about the mortgages. Neither is always correct. They created a synthetic security. Showed the potential buyer the pieces that the security derived its value from and said, would you be interested in buying some? They weren't selling to unsophisticated investors, they were selling to other huge entities who could do their own research on the mortgages

21 posted on 08/11/2012 10:21:11 AM PDT by Toddsterpatriot (Math is hard. Harder if you're stupid.)
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