So, it was basically Credit Default Swap Fraud? Shocking!
Goldman's, JP and Cos. financed sub primes(with resets in 3-5 years), bought insurance(3-5 year plans) on them knowing full well they would crash and sold them off to 401(k)s and pension plans while they retained the insurance(Default swaps) at a 5:1 ratio making billions when they finally crashed.
Basically, they put cheap tires and 500 extra kilos on an F1, pumped in some nitro and 3-5 laps worth of gas, and they and all their buddies bet the car wouldn't last more than 3-5 laps.
Nothing to see here folks. Look, a black bird.
They Put Cheap Tires And 500 Extra Kilos On An F1...
I don't know anything about finance. Nothing. Well, except now I have a basic idea of what Wall Street did with that whole credit-default-swap thing: