On Mon, Jan 25, 2010 at 3:21 PM, c b <[email protected]> wrote:
> But the second one is even more of an insult to the intelligence, that
> proprietary trades and customer trades exist in neat, tidy boxes and a
> trade with a customer is therefore a pure act of mere passive order
> taking. When Goldman went net short subprime, was that not a
> proprietary position? And who do you think was on the other side of
> that trade? Hint: for the most part, not other dealers.
>
> ^^^^^
> CB: Yeah , who was on the other side of that trade ?



Assorted small-time suckers. Municipal governments, small pension
funds (who bought into the Abacus deals that Goldman Sachs
specifically put together to fail quickly). And one big-time sucker:
AIG (who sold CDS protection on those Abacus deals).
http://www.nytimes.com/2009/12/24/business/24trading.html

-raghu.



-- 
"I don't care who you are, Fatso. Get the reindeer off my roof!"
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