Trust the bank.

in 2006 and 2007 Goldman Sachs sold more than $40 billion in securities backed by at least 200,000 risky home mortgages. These were bought by all sort of investors, including pension funds. At the same time, Goldman Sachs was betting that a sharp drop in US housing price would send the value of those securies to the floor. Of course, Goldman’s reason is straightforward: they were “hedging”!.

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