NY Times article on the practice of simultaneously selling bad debts and then betting against it

http://www.nytimes.com/2009/12/24/business/24trading.html?em

“The simultaneous selling of securities to customers and shorting them because they believed they were going to default is the most cynical use of credit information that I have ever seen,” said Sylvain R. Raynes, an expert in structured finance at R & R Consulting in New York. “When you buy protection against an event that you have a hand in causing, you are buying fire insurance on someone else’s house and then committing arson.”

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