Wrong. He was simply betting that subprime loans were a huge risk that was going to go bust. If you need to blame someone, go for the people who made these loans in the first place, or the ratings companies for failing to spot the disaster.
He did more than just place a bet. He carefully read the prospectus of the individual bonds he was shorting. He looked into the underlying loans that the bond was based on. He saw: no income verification, no down payments, and inflated home prices. This is something the people buying the bonds could have and should have done themselves.
I'm not blaming anyone. I'm just pointing out that in a financial system where shit like this happens over and over again, i.e. hard working people entrust their money to money managers/investors (cough heartless gamblers cough) to invest wisely so the economy overall can prosper from the capital infusion and so the people investing in the future can have a future but they only live long enough to see all their savings vanish, is fundamentally broken and needs to be fixed.
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Wrong. He was simply betting that subprime loans were a huge risk that was going to go bust. If you need to blame someone, go for the people who made these loans in the first place, or the ratings companies for failing to spot the disaster.
He did more than just place a bet. He carefully read the prospectus of the individual bonds he was shorting. He looked into the underlying loans that the bond was based on. He saw: no income verification, no down payments, and inflated home prices. This is something the people buying the bonds could have and should have done themselves.
I'm not blaming anyone. I'm just pointing out that in a financial system where shit like this happens over and over again, i.e. hard working people entrust their money to money managers/investors (cough heartless gamblers cough) to invest wisely so the economy overall can prosper from the capital infusion and so the people investing in the future can have a future but they only live long enough to see all their savings vanish, is fundamentally broken and needs to be fixed.
If by "failing to spot the disaster" you mean : "this thing's gonna crash, now shut up and make some money by saying it won't" - then I agree :) .