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Member Since: 3/15/2006
 

Betting on the Blind Side

Submitted Tuesday, March 16, 2010 by adam | Category: Business
Interesting excerpt from Michael Lewis' new book "The Big Short", focusing on how a select few financial analysts figured out how to short the credit bubble and make fortunes. Big fortunes.
  
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by adam at 3/16/2010 8:51:49 AM Score 0  Cool Weak
My favorite is George Lippman. In this article he's portrayed more as a copy-cat than a financial genius. But he has one of the best quote I've read on the situation. When accused of being a "Chicken Little" regarding the pending financial apocalypse by a Goldman Sachs exec, he responded by saying "Fuck you, I'm short your house."
by adam at 3/16/2010 8:55:57 AM Score 0  Cool Weak
Sorry, one more from a review of Lewis' book. "Lewis uncovers what could possibly be the single greatest trade that any Wall Street banker ever made: in December 2006 and January 2007, Deutsche's Greg Lippmann paid an insurance premium of 0.28 percentage points to take out insurance on $4 billion of triple-A-rated bonds from Morgan Stanley's Howie Hubler. Less than a year later, that $11 million bet paid off to the tune of a whopping $3.7 billion. That's an annual return of more than 33,000%."

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