Goldman would sell CDOs promising big safe returns while also betting against them by buying insurance from AIG to profit when they failed they also purchased insurance on AIG failing b/c they saw how stupid AIG was being and was worried about AIG not being able to pay out
new types of insurance are being created to benefit from a market crash thread kinda shifts direction a bit & ends up talking about gamestock and how it's impossible for the open short positions to be covered
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they can't buy the stock b/c it's a mexican standoff. the buying would trigger a mad rush driving up the price as each tried to save themselves. this gives room for the True Believers to amass positions b/c of the math, the profit is theoretically infinite the longer u hold outpic.twitter.com/A9qyRbD871
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