the bubble was in the price of the collaterized debt. having read a few accounts of hedge funds in that time - it seemed preposterous that these things would ev

the bubble was in the price of the collaterized debt. having read a few accounts of hedge funds in that time - it seemed preposterous that these things would ever lose value because of the way they were engineered. some of the big fund managers who made big at the time were embarrassed to tell their peers that they were short CDO's. David Einhom was probably the only one who came out and said it - the rest, like Poulson and co. were quiet.