Demonizing Goldman

I really don't see the problem. It's a market right. You have someone who thinks houses were fairly priced or cheap, so that person buys an instrument backed by mortgages for example. Then you have someone else who has come to the conclusion that housing is overpriced historically and pace is just unsustainable. They sell the mortgage backed securities.

So why the hell shouldn't these two market participants be allowed to place their bets? I've been "gambling" in the market for more than a decade (sounds dramatic) - and if I happen to place a wrong bet I don't go running to anyone saying it's unfair.

I read some US senator thinks it's not on to make money if others lose or are miserable (implicitely anyway). Well guess what, if you want that you should maybe join the communist party.

The only thing I do find a joke, is how Goldman was able to milk the US (taxpayer) by milking AIG. That was wrong. But betting against a housing bubble is not.

Context:

http://www.marketwatch.com/story/goldman-emails-show-need-for-bank-reform-dodd-2010-04-25