The Greatest Trade Ever

The Greatest Trade Ever

The Behind-the-scenes Story of How John Paulson Defied Wall Street and Made Financial History

eBook - 2009
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In 2006, hedge fund manager John Paulson realized something few others suspected--that the housing market and the value of subprime mortgages were grossly inflated and headed for a major fall.nbsp; Paulson's background was in mergers and acquisitions, however, and he knew little about real estate or how to wager against housing.nbsp; He had spent a career as an also-ran on Wall Street. But Paulson was convinced this was his chance to make his mark. He just wasn't sure how to do it.nbsp; Colleagues at investment banks scoffed at him and investors dismissed him.nbsp; Even pros skeptical about housing shied away from the complicated derivative investments that Paulson was just learning about.nbsp; But Paulson and a handful of renegade investors such as Jeffrey Greene and Michael Burry began to bet heavily against risky mortgages and precarious financial companies. Timing is everything, though. Initially, Paulson and the others lost tens of millions of dollars as real estate and stocks continued to soar. Rather than back down, however, Paulson redoubled his bets, putting his hedge fund and his reputation on the line.
nbsp;nbsp;nbsp;nbsp; In the summer of 2007, the markets began to implode, bringing Paulson early profits, but also sparking efforts to rescue real estate and derail him. By year's end, though, John Paulson had pulled off the greatest trade in financial history, earning more than $15 billion for his firm--a figure that dwarfed George Soros's billion-dollar currency trade in 1992.nbsp; Paulson made billions more in 2008 by transforming his gutsy move.nbsp; Some of the underdog investors who attempted the daring trade also reaped fortunes. But others who got the timing wrong met devastating failure, discovering that being early and right wasn't nearly enough.
nbsp;nbsp;nbsp;nbsp; Written by the prizewinning reporter who broke the story in The Wall Street Journal , The Greatest Trade Ever is a superbly written, fast-paced, behind-the-scenes narrative of how a contrarian foresaw an escalating financial crisis--that outwitted Chuck Prince, Stanley O'Neal, Richard Fuld, and Wall Street's titans--to make financial history.

From the Hardcover edition.
Publisher: [New York] : Crown Business, 2009.
ISBN: 9780385529938
Branch Call Number: E-BOOK
Characteristics: 1 electronic text.
Additional Contributors: OverDrive, Inc


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May 31, 2014

When you stop and consider that ALL synthetic CDOs were made possible through the payments made to purchase CDS "insurance," it's evident that someone - or more likely, several someones - made a whole lot more money than Paulson or any of the characters in 'The Big Short,' 'And Then The Roof Caved In,' and other such accounts.

Apr 20, 2013

We now know (and everyone should by this late date) that this book is a complete sham, as the SEC investigation, which levied a criminal penalty against Goldman Sachs (and should have jailed Paulson, but corruption reigns supreme at the SEC, as they are heavily influenced politically by the Federal Reserve (as Sheila Blair mentioned on her way out the door of the FDIC), that it was rigged financial instruments (Abacus CDO, et al.) between Paulson and Goldman Sachs, and Paulson and others, together with the US Treasury's favorite financial manipulation device, the credit default swap, used as a naked swap, that afforded the financial fraud of John Paulson and Goldman Sachs (loading CDOs with the trashiest of loans, then buying naked swaps against them; $1.4 million per swap, with a payout of $100 million per swap, and so forth). Paulson and GS bet on NOTHING, they stacked the deck, cheated, then reaped the profits by theft, and GS would later pay a paltry penalty.

CorwinK Apr 25, 2011

Really great account of how John Paulson and a crew of others made financial history. I personally think its a better telling of these episodes than 'The Big Short' by Michael Lewis.

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