Reply #18: Goldman e-mails show how crash turned into cash

[WillYourVoteBCounted]

Source: The Associated Press

By DANIEL WAGNER and DAN STRUMPF (AP)
NEW YORK — As the U.S. housing turned downward in January 2007, a Goldman Sachs trader wrote in e-mails to a woman he apparently was courting that investments he had sold were "like Frankenstein turning against his own inventor."
...
Tourre was talking about investment products like the one at the heart of a federal complaint against his firm. For Tourre, the investments were like an invention gone awry: He had started arranging them when the market was on the upswing. But he continued selling them after the market turned — now with Goldman betting against them, in one case allegedly misleading investors about a deal's origin.

Goldman Sachs Group Inc. released that e-mail and 25 other internal documents Saturday in response to a Senate panel's release of messages in which Goldman executives boast about money they were making as the market imploded later in 2007.

When credit rating agencies downgraded many billions of dollars of mortgage-backed investments in October 2007, Goldman executive Donald Mullen was unabashedly pleased.
"Sounds like we will make serious money," Mullen wrote to Michael Swenson, another executive, in one of the e-mails released by the Senate Permanent Subcommittee on Investigations.

Read more: http://www.google.com/hostednews/ap/article/ALeqM5hJOo6Ubn_quW5ffs-Y0pQIBUk6-wD9F9MR482

---

Crash/Trash into Cash.