The financial crisis of 2008 can be

The financial crisis of 2008 can be said to be one of the worst crisis which occurred and it had a huge global impact. Many banks were wiped out and many people lost their jobs. However there were few banks which apparently made a lot of money. One of them was Goldman Sachs. Goldman Sachs made a lot of money by taking positions against that given to the clients. Goldman Sachs used to give investment advice to the clients. It sold a lot of mortgage based products to the clients. These products payoff was dependant on the people paying their mortgages. These loans were taken by the people who didn’t have a strong background to pay the money. These were essentially subprime loans. These loans had the highest probability.
This should have been the best advice for the clients. However Goldman Sachs took the opposite positions for the positions which their client took. When the 2008 crisis happened all the people started defaulting. As a result the losses on these mortgage securities increased for