The most damning aspect of the 2008
financial crisis is not the crash itself.
It is what Goldman Sachs was doing
in the years leading up to it.
They were creating and selling
Collateralised Debt Obligations —
bundles of thousands of mortgages —
to investors as AAA rated safe assets.
At the same time — internally —
Goldman was placing bets that
those same products would collapse.
This is a direct conflict of interest.
The rating agencies stamping these
products as AAA safe were being paid
by the same banks creating them.
When the crash came — Goldman
profited from the collapse.
When the bailout came — Goldman
received taxpayer money.
When bonuses were paid — Goldman
executives collected hundreds of
millions of dollars.
Not one Goldman executive was
convicted of any crime.
Made a short video on the full
economic story. Would love feedback
from this community.
Goldman Sachs was simultaneously selling mortgage backed securities to clients as safe investments while internally betting those same products would fail. Here is the documented proof.
byu/unforgettable111 ineconomy
Posted by unforgettable111
1 Comment
So they were hedging like all banks everywhere do almost all the time?