How Did Goldman Sachs Know That The Housing Market Was About To Collapse?

A five-month McClatchy Newspaper investigation reveals how Wall Street giant Goldman Sachs peddled billions of dollars in shaky securities tied to subprime mortgages on unsuspecting pension funds, insurance companies and other investors, then dumped its risky investments and placed secret bets against the housing market right before the mortgage bubble burst.

Somehow, among Wall Street investment firms, only Goldman Sachs knew that the housing market was about to crash!

Is it merely a coincidence that Goldman Sachs President and CEO Henry ("Hank") Paulson happened to be serving as U.S. Treasury Department Secretary while this was going on???? The same Henry Paulson who threatened certain congressmen with MARTIAL LAW if they didn't pass the TARP last October.

Read the reports and decide for yourself:

How Goldman secretly bet on the U.S. housing crash
by Greg Gordon - 1 Nov. 2009.
http://www.mcclatchydc.com/227/story/77791.html

Mystery: Why did Goldman stop scrutinizing loans it bought?
by Greg Gordon - 1 Nov. 2009.
http://www.mcclatchydc.com/homepage/story/77788.html

Goldman takes on new role: taking away people's homes
by Greg Gordon - 2 Nov. 2009.
http://www.mcclatchydc.com/homepage/story/77841.html

Big thumbs up to McClatchy Newspaper investigative reporter Greg Gordon and crew for a job well done!

Category:

News & Politics

Tags:

• Goldman
• Sachs
• placed
• bets
• risky
• toxic
• subprime
• mortgages
• housing
• crisis
• collapse
• meltdown
• economy
• Henry
• Hank
• Paulson
• Wall
• street
• McClatchy
• newspapers
• Greg
• Gordon
• banks
• banksters
• bank
• holding
• companies
• TARP
• investors
• credit
• default
• swaps
• mortgage
• backed
• securities
• assets
• pension
• funds
• derivatives

[RAMKING61]

Edward Liddy resigned from the Goldman Sachs Board of Directors on September 23, 2008, to become the CEO of AIG. The bailout bill passed Congress less than 2 weeks later! Liddy then decided to resign on May 21, 2009.

Talk about blatant, obnoxious, and devious scum!

[jiveturkeyusa]

It is clearly a case of Goldman Sachs withholding information they had about the product (mortgage backed securities with AAA ratings) they were selling to pension funds. Internal documents clearly show they knew they were selling crap to pension funds and they were even betting hugely against those products through credit default swaps. Goldman was betting against the housing market and didn't count on AIG defaulting LOL then we all got to see how private finance and government really works.

[theunbubba]

Goldman knew because they were watching what the fuck Senator Chuck Schumer was doing to bring down Indy Mac Bank and Washington Mutual. It was plain as day that the democrats crashed the economy to win the presidential election in 2008.

If you don't get that you need your fucking heads examined.

[jiveturkeyusa]

Were there more mortgage defaults in the 365 days before the bank bailout bill, or the 365 days after the bank bailout bill?

[jiveturkeyusa]

@theunbubba A hedge against a mortgage backed security is a credit default swap. AIG was bought by the Treasury and Federal Reserve to cover the "hedges" that Goldman and others made through AIG. That is why it was such a corrupt deal for the American people. The tax payers were forced without consent to buy credit default swap obligations to pay Goldman Sachs, JP Morgan, and others. Goldman Sachs was betting against the housing market through AIG and when AIG failed they cried about it.

[theunbubba]

youtube.com/watch?v=LPSDnGMzId­o

[theunbubba]

@jiveturkeyusa Because AIG was not allowed to fail. If AIG had been allowed to fail then the hedges that Goldman bought would have paid out the 12.9 billion instead of the money paid them by AIG from it's share of the bailout. In the financial world you make sure of what you're buying in to if you're smart. Goldman isn't in the position it's in from being stupid.

[jiveturkeyusa]

@theunbubba Why did they need to get bailed out? Sounds like they are a bunch of pussies that go looking for handouts from the American people. That is who they are. They are cowardly little weasels that need to use deception and corruption to make money.