Goldman & Mortgages

Golman Sachs has been in the news recently relating to an SEC investigation into a deal the firm created so that hedge-fund manager John Paulson could bet on a collapse in U.S. housing prices. When all was said and done John Paulson made more than $1 billion on the correct bet that people would be unable to pay off their mortgages.

If you ever wondered how a homeowner's loan in America gets put into a financial package that gets sold to investors all around the world:



The entire Wall Street Journal article on the topic is very interesting and well worth the read (thanks to Noah for the link): http://online.wsj.com/article/SB10001424052748704133804575198120387721724.html?mod=mktw