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jessi, my position generally is that GS is a large and diverse company with a large and diverse client set. I have no problem with GS shorting MBS for themselves while selling them to other clients. There’s also the fact that a company like GS is supposed to do a certain amount of hedging, so nothing wrong with being short and long at the same time.
I do think they crossed the line in inviting a guy like Paulson in to create a security that would act like an MBS short, and then selling it to clients looking to be long in MBS. I think there was a failure to disclose there. We’ll see.
A few days ago I had an incredible experience. It was one of those rare days when I drive to my office in White Plains. When I drive up to WP, I take the Henry Hudson Parkway, which, imho, is one of the most beautiful roads in the US.
At about the point of the Cloisters, I noticed something strange: there were no cars on the road to the front or to the side of me. Moreover, at that point in the HHP, one cannot see the southbound lane. In effect, I had the whole highway to myself!! I looked at the clock, and it was 9.15 AM. I said to myself “It’s 9.15 AM on a Manhattan Highway. How can there be no cars? Has an emergency been called that I missed? Am I in a Twilight Zone episode?” Then I figured: Heck, just enjoy it! I drove for about 1 mile without sight of another car on the twisting, turning, scenic Henry Hudson Parkway on a beautiful clear day. It was a thrilling, but eerie, experience.
Denton, I thought you were okay with the house taking the other side of the bet. I guess setting something up to fail and not disclosing it isn’t the same thing though.
LOL, Dave. They sing that song in the movie version of “A Separate Peace” (the original, not the remake), which takes place during WWII. It may have originally been in the book, too. John Knowles. Great writer. (Come to think of it, one of my log-in names is based on a character in “A Separate Peace”.)
jessi, my position generally is that GS is a large and diverse company with a large and diverse client set. I have no problem with GS shorting MBS for themselves while selling them to other clients. There’s also the fact that a company like GS is supposed to do a certain amount of hedging, so nothing wrong with being short and long at the same time.
I do think they crossed the line in inviting a guy like Paulson in to create a security that would act like an MBS short, and then selling it to clients looking to be long in MBS. I think there was a failure to disclose there. We’ll see.
DIBS;
That little ditty was our favorite in grammar school. It is song to the tune of the theme song from the movie “Bridge Over River Kwai”.
I’m outta here. Have a good weekend all!
Hello all.
A few days ago I had an incredible experience. It was one of those rare days when I drive to my office in White Plains. When I drive up to WP, I take the Henry Hudson Parkway, which, imho, is one of the most beautiful roads in the US.
At about the point of the Cloisters, I noticed something strange: there were no cars on the road to the front or to the side of me. Moreover, at that point in the HHP, one cannot see the southbound lane. In effect, I had the whole highway to myself!! I looked at the clock, and it was 9.15 AM. I said to myself “It’s 9.15 AM on a Manhattan Highway. How can there be no cars? Has an emergency been called that I missed? Am I in a Twilight Zone episode?” Then I figured: Heck, just enjoy it! I drove for about 1 mile without sight of another car on the twisting, turning, scenic Henry Hudson Parkway on a beautiful clear day. It was a thrilling, but eerie, experience.
And here’s the point that Hitler found out that everyone was singing about it and there were 2,600,000 pages devoted to it on google..
http://www.youtube.com/watch?v=NmDJvDOWjZU&feature=related
is lance still boning crow?
Denton, I thought you were okay with the house taking the other side of the bet. I guess setting something up to fail and not disclosing it isn’t the same thing though.
Here’s the musical version…and the confirmation.
http://www.youtube.com/watch?v=lmswTuiclro
LOL, Dave. They sing that song in the movie version of “A Separate Peace” (the original, not the remake), which takes place during WWII. It may have originally been in the book, too. John Knowles. Great writer. (Come to think of it, one of my log-in names is based on a character in “A Separate Peace”.)
dibs – I haven’t heard that in years! Where’s it from?