[Toddsterpatriot]

Yes, with the GSEs demanding such a huge amount of these loans, there was a race by everyone else to get their own.

Enough so that there was demand by some Goldman customers for synthetic MBS.

[Pelham]

“Enough so that there was demand by some Goldman customers for synthetic MBS.”

I remember trying to sort out Synthetic CDOs, CDOs Squared, and all the rest of the derivatives that had been cranked out during the bubble. My head was spinning. I wonder if anybody in charge of investment firms had the slightest idea what all of this stuff was made of. I think they must have trusted their quants and left it at that.