Monday June 6, 2011
The Finance Committee has produced a 600 plus page report alleging that Goldman Sachs bet against its own clients. As GS sold subprime mortgages they shorted that very market. GS was betting the sub prime values would fall.
While it typically took the US Govt hundreds of pages to make the point, Michael Lewis does it in chapter three of
The Big Short. Reading for context is very important in accounting. Let's hope that everyone will do that this summer. This is another in a series of books about the financial meltdown that will improve your understanding of what is happening.
Professor Elam 
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