Does Michael Lewis' Harvard Thesis Exonerate Goldman?

Back in December, the New York Times ran a story about Goldman and some collateralized debt obligations they underwrote. Turns out the CDOs, which were constructed by pooling together other bonds, performed badly. Really, really badly.

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Citigroup is at it again!!

The market for collateralized debt obligations backed by high-yield, high-risk loans is poised to open in the U.S. for the first time in a year after losses on mortgages prompted investors to flee bundled securities.

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Robert Scheer: It's Greek to Goldman Sachs

Just as it did with mortgages in the U.S., Goldman in effect bet against the collateralized Greek debt obligations. The basic issue is the same.

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Drinking the Financial Innovation Kool-Aid

Financial innovation is not like any other kind of innovation in our economy. If you create a new IPod and it goes sour, it hurts Apple. Create a synthetic collateralized debt obligation that goes south, you crash the world economy.

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