Goldman Sachs Emails: Firm Had 'The Big Short' As Economy Fell

I love this part of the article ;-]

The firm made money on the upside -- originating, securitizing and selling subprime mortgage-based securities to investors -- and on the downside, thanks to the insurance.

"Bad news," a May 17, 2007, email began from one Goldman employee to another. A security the firm had underwritten and sold had just lost value, costing Goldman about $2.5 million.

Further down in the email, the employee, Deeb Salem, wrote "Good news...we own 10mm protection...we make $5mm."

The firm made $5 million betting against the very securities it had underwritten and sold.

Counterspin just interviewed someone that did a great analysis of this and how WaMu knew that the mortgages they peddled were fraudulent. Get you money local before it is too late! hahahaha

Goldman Sachs Emails: Firm Had 'The Big Short' As Economy Fell