Tuesday, April 13, 2010
The Evil on The Street
Jesse Eisinger, an old friend, has a story up on Pro Publica, written with Jake Bernstein, about a hedge fund called Magnetar that built up a great big stash of collatorized debt obligations (CDOs) only to bet against them (by "shorting" the stock). I found the story riveting. I couldn't believe the cynicism and greed of the men at this fund. I know at this point I shouldn't be surprised by how low finance guys could sink even without breaking the law, but, still, I was. It's a story well worth reading.