tag:blogger.com,1999:blog-5880610.post2401606370041153008..comments2024-01-13T18:57:18.243-05:00Comments on Information Processing: How it looked to PaulsonSteve Hsuhttp://www.blogger.com/profile/02428333897272913660noreply@blogger.comBlogger5125tag:blogger.com,1999:blog-5880610.post-19739413872547955332010-04-17T22:46:40.378-04:002010-04-17T22:46:40.378-04:00I don't see a problem for Paulson in the Goldm...I don't see a problem for Paulson in the Goldman deal, but his views are not quite as presented. I first became a fan of his because he believes that there was predatory lending, lowered standards, and misrepresentation going on after 2005. In other words, he believed that people were fudging books and cutting corners, without reporting that. In picking a middleman, I wonder if it matters donthelibertariandemocratnoreply@blogger.comtag:blogger.com,1999:blog-5880610.post-49352839878713257262010-04-17T12:30:37.697-04:002010-04-17T12:30:37.697-04:00> I think the point is not that somebody would ...> I think the point is not that somebody would shorting it or who that would be, but that the instrument itself was effectively designed by the shorting counterparty.<br /><br />Sure, that looks bad. But it's more of a problem for ACA, the CDO managers, not GS. ACA did the (supposed) diligence on each of the proposed reference CDOs -- they even rejected many of P's suggestions. The steve hsuhttp://duende.uoregon.edu/noreply@blogger.comtag:blogger.com,1999:blog-5880610.post-51663356182681167682010-04-17T12:05:37.034-04:002010-04-17T12:05:37.034-04:00I think the point is not that somebody would short...I think the point is not that somebody would shorting it or who that would be, but that the instrument itself was effectively <i>designed</i> by the shorting counterparty.zielnoreply@blogger.comtag:blogger.com,1999:blog-5880610.post-16951909605240051082010-04-17T11:54:30.917-04:002010-04-17T11:54:30.917-04:00This is a synthetic CDO -- no real mortgage intere...This is a synthetic CDO -- no real mortgage interest flowing through it, just bets "referencing" existing CDOs. That means there's somebody on the short side of the trade for sure. So what if they had disclosed it was Paulson? Who knew who Paulson was in 2007? <br /><br />See the excerpt -- plenty of people told him to his face he was crazy; would disclosing his involvement really steve hsuhttp://duende.uoregon.edu/noreply@blogger.comtag:blogger.com,1999:blog-5880610.post-30861099509962123382010-04-17T11:31:13.271-04:002010-04-17T11:31:13.271-04:00As you say, Paulson does not seem to have a proble...As you say, Paulson does not seem to have a problem here. But why do you call it a tricky case for SEC ? The case is primarily against Goldman which acted in bad faith by failing to disclose material information (that the counterparty was Paulson himself) to ACA and ABN Amro.<br /><br />One thing's for sure - I am going to scour your pages for tips from now on !!Madhunoreply@blogger.com