Frame by Frame Subprime Crash analysis

The best way to understand a securitized mortgage obligation explosion is to read this article

What is not being seen or talked about en mass via the media, is where are the large lawsuits and counter party claims that usually unfold from such a situation. I am assuming that at some point, Goldman should be several tranches of lawsuits from all this. Caveat Emptor aside, the big issues for Goldman in defending itself is:

Goldman said it made money in the third quarter by shorting an index of mortgage-backed securities. That prompted Fortune to ask the firm to explain to us how it had managed to come out ahead while so many of its mortgage-backed customers were getting stomped.

I would like to see what the Eliot Spitzer's of the world think of this situation. I'm sure more is about to unfold.

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