tag:blogger.com,1999:blog-5880610.post7487116764293863701..comments2024-01-13T18:57:18.243-05:00Comments on Information Processing: MacKenzie on the credit crisisSteve Hsuhttp://www.blogger.com/profile/02428333897272913660noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-5880610.post-83558079717697556392008-06-10T14:08:00.000-04:002008-06-10T14:08:00.000-04:00Fred:Raghuram Rajan described the situation well i...Fred:<BR/><BR/>Raghuram Rajan described the situation well in this <A HREF="http://faculty.chicagogsb.edu/raghuram.rajan/research/finrisk.pdf" REL="nofollow">paper</A> from 2005. <BR/><BR/>They sold a lot of it, but couldn't move all of it without fine print giving (at least some) buyers a put option. The accounting for those put options was probably unethical as well, though I can't prove it.Sethhttps://www.blogger.com/profile/16486234948199900568noreply@blogger.comtag:blogger.com,1999:blog-5880610.post-67129141680712837892008-06-10T09:57:00.000-04:002008-06-10T09:57:00.000-04:00They held onto some inventory because it had AAA r...They held onto some inventory because it had AAA ratings and above market returns. Looked great at the time. Only a few people at each firm realized how toxic the stuff really was.<BR/><BR/>Only at Goldman did the smart guys at the firm bet *against* their own CDO holdings using the indices.<BR/><BR/><BR/><BR/>http://infoproc.blogspot.com/2008/01/higher-intelligence-at-goldman.html<BR/><BR/>But Steve Hsuhttps://www.blogger.com/profile/02428333897272913660noreply@blogger.comtag:blogger.com,1999:blog-5880610.post-8554969111758563872008-06-10T09:15:00.000-04:002008-06-10T09:15:00.000-04:00What I don't understand is how these investment ba...What I don't understand is how these investment banks ended up with all that inventory. I thought they were in the business of packaging and selling these . Did they guarantee them somehow?Anonymoushttps://www.blogger.com/profile/16603070231311708802noreply@blogger.com