Goldman Sachs Says Trust Us, For Real This Time, You Should Buy Subprime Mortgages

Mark Gongloff, Huffington Post

Hey, girl, you can totally trust Goldman Sachs now when it suggests you should buy subprime mortgages. Not like that other time.

Goldman is telling its clients to buy stakes in some of the ABX subprime-mortgage indexes that it helped create back before the crisis, back when it was betting against subprime mortgages. It was betting against subprime mortgages so hard that its pet name for that bet was “the big short,” just like the Michael Lewis book.

We know Goldman has hurt you in the past. A lot. We know it has only been a few years since Goldman was selling you collateralized debt obligations stuffed with toxic subprime mortgages with one tentacle and then betting heavily against them with the other. But it has paid its dues, baby: $550 million, to be exact. That’s real money. Money that took several hours of hard work to make up. Those hours gave Goldman time to think about how it had done you wrong. Actually, scratch that — Goldman doesn’t admit or deny wrongdoing, baby. You know that’s not how it rolls. But you get the picture. Anyway, the Securities and Exchange Commission says Goldman is totally in the clear now.

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