[deciplex]

Can you expand on the significance of this difference? I guess you're asserting that the "correct price" is the one that someone will pay for it, and that something is only "incorrectly priced" if no one will buy it. But the point is precisely that no one would have bought these goods for the indicated price had GS not obfuscated what they were selling in the first place. It seems to me that you're really splitting hairs.

[BurningFrog]

I think VeilEm is saying it was a bait-and-switch, or maybe false marketing.

If you pay me $50k for a BMW, and I deliver a Honda, the problem isn't that $50k is the wrong price for a BMW.

[shrewduser]

there's no difference.

they weren't priced correctly is a perfectly reasonable thing to say, and synonymous with they lied about their level of risk.

[jevgeni]

CDO's are huge and complicated deals. All the little details are documented in the prospectus. Granted it's 700 pages long on average, but maybe people shouldn't be buying 2-3 billion USD securities if they don't have the capacity to understand and model them properly.

[shrewduser]

there aren't many humans who can grok that kind of info and truly understand it, that's why they were supposed to be rated accurately by ratings agencies.