골드만삭스와 존 폴슨 헤지펀드의 CDS, CDO 거래 (미국대학 영어리포트 A)

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“Greed, for lack of a better word, is good. Greed is right. Greed works. Greed, in all of its forms; greed for life, for money, for love, knowledge, has marked the upward surge of mankind.” This is the famous quote by Gordon Gekko, the financial mogul, in the movie “Wall Street” that inspired me to go into finance. I rewound and watched this scene over and over again because I was completely fascinated by him. At 19, I thought Gekko was the greatest man in the world and decided to be like him one day. When the Dow Jones Index went from 760 point in 1980 to 13,279 in December 2007, it seemed obvious to me and most everyone that Gekko’ssperity.

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This raises the question of Co. and Goldman Sachs could make profits by selling CDSs. John Paulson and Goldman Sachs knew that the CDOs, which consisted of bunch of trash subprime assets, would fail. According to Gregory Zuckerman, the author of his book “The Greatest Trade Ever”, “John Paulson was sure he had discovered proof of a housing bubble, and he was determined to profit from it.” (Zuckerman, 115). He started seeking an opportunity to make money by betting against the CDO’s they were selling. In order to do that, they had to omnivorously buy CDSs.

참고 자료

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115, 151, 152, 171
Blanco, Roberto, Simon Brennan, and Ian W.Marsh. An Empirical Analysis of the Dynamic
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