Dr. Housing Bubble 05/01/10

[Crewleader]

The great American mortgage casino – How the Goldman case is about the broken down system that allowed massive gambling in America’s housing market for the last decade. Average sales price down because distress sales still account for 30 percent of home sales nationwide.

The case against Goldman Sachs is the ultimate conclusion to a decade long housing and gambling bubble fueled by easy money, no-documentation loans, and fraud spurred lending. While the investment banks nitpick whether a fraud was actually committed, many Americans are getting their first primetime dosage of how corrupt and absurd the crony banker system has become. To sum up the situation, Goldman helped hedge fund billionaire John Paulson find the ultimate toxic housing bet. Through various parties, it is alleged that Paulson pushed for certain undesirable toxic mortgages to be part of a giant pool of mortgages that unbeknownst to Goldman clients (the issue at hand), Paulson was making the ultimate short bet. Goldman collected fees upfront, Paulson made out like a bandit, and someone got the short end of the stick.

http://www.doctorhousingbubble.com/great-american-mortgage-casino-goldman-sachs-foreclosures-betting-gambling/