Ex-Goldman Trader Who Made Millions On Subprime, Now Making Even More Millions On Subprime

Tyler Durden's picture

One of the 'chief architects of Goldman's Big Short' on the subprime debacle is reaping the rewards of the Fed's actions once again at his new hedge fund. After backing up the subprime truck in 2007 for Goldman, Josh Birnbaum is back (at Tilden Park Capital) and according to Bloomberg, is up 30% this year as we presume he is front-running the Fed's repression. The 40-year old founded the firm as a number of funds enter the non-agency mortgage-bond market where there are "billions of bonds trading a week and they are hotly debated" which creates opportunity from different valuations - as opposed to the agency-side where the heavy hand of Bernanke moves everything systemically. Ironically while Birnbaum bet it all on Subprime weakness at Goldman, he appears to be all-in on recovery this time as he notes "some of these recovery plays are compelling" and is "significantly more constructive" now than a year ago.

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
GetZeeGold's picture



Subprime.....seems I've seen this movie before.


Oh well.....maybe Albert Einstein is an idiot.

Dalago's picture

His LinkedIn page: http://www.linkedin.com/in/joshbirnbaum

He was never a "made man."  He was never asked to be a partner.

Race Car Driver's picture

He didn't ask to be chosen.

GetZeeGold's picture



Those damn Muppets....after all we did for them.


LMAOLORI's picture




Muppets more like Vampires they don't stay dead


BY Roland Li | August 14 2012

Who was the biggest buyer of U.S. commercial real estate in the past 12 months?

It wasn't a big private equity firm or luxury developer. Rather, it was the estate of Lehman Brothers, which is still making deals nearly four years after its demise. In the past year, it paid $3 billion to take over Archstone from its creditors, and it is now preparing to take the firm public.

The failed bank still has condos, hotels and mortgages in its portfolio, which it values at $12.9 billion, according to Bloomberg. And instead of going quietly into liquidation, Lehman has been reminiscent of the aggressive firm that gorged on subprime assets as it continues to buy.

Lehman Comes Back From the Dead

DaveyJones's picture

I see his picture and the first two financial words that come to mind are... little prick

larz's picture

....after all we did to them - fixed for you gratis

Shevva's picture

You can tell he's not in the Monty Burns inner circle of finance as he hasn't got the $ cuff links yet.

Cognitive Dissonance's picture

"....as he notes "some of these recovery plays are compelling" and is "significantly more constructive" now than a year ago."

Please define "recovery" because recovery in the Ponzi finance world and recovery in the "real" world are experienced very differently.

insanelysane's picture

I'm sure he'll get a call from a friend at the Fed the day before the day before they plan to stop QE infinity.

MachoMan's picture

I think he meant "X assets are undervalued because the recovery meme will be sold to people in a more compelling fashion to top off their pre-existing cognitive dissonance and, if unsuccessful, then ben will just cram it down their throats"...  [and he'll be there to cash in on it]

No way an insider who understood the fundamentals of sub-prime buys into a recovery on fundamental aspects...

DaveyJones's picture

it's a lot like candidates giving reasons why oil prices are going up in the political world and why they are in the real one.

little pricks  

sdmjake's picture

"All in on the recovery"... I hope Karma is truly the bitch for this Birnbaum punk

Chump's picture

At the very least it's another name on the list and a face to go with it.

Variance Doc's picture

Note the similarity between your avatar and the perp's photo.

fonzannoon's picture

it's all government backed now. print print print. everyone gets a bailout.

ptoemmes's picture

It's astounding (not really) how much money is (to be) made playing the same song over and over and doing nothing more than punch buttons on a keybord of which there is absolutely no social, moral (OK I am getting carried away) but certainly no real economic value.  I'd almost be for taxing this nonsence at 51%!



doomandbloom's picture

things are definitely improving....for the rich.

GetZeeGold's picture



I'm guessing you don't consider yourself to be in that group.


So how much is this going to cost me?

dolph9's picture

1)  Never trust what these guys say, what they do is probably the opposite

2)  When they make a bad bet, they will get even more free money from the Fed and you will get higher food and gas prices

yogibear's picture

These guys know Bernanke and the Federal Reseve will back them up with unlimited money.

Commit fraud and criminal acts. You have the SEC and CFTC to cover up anything.


Dr. Engali's picture

Please,...if there is a such thing as karma let this man get creamed.

GetZeeGold's picture



Instant Karma is gonna get ya - John Lennon.


Race Car Driver's picture

I junked you for quoting a pop icon.

GetZeeGold's picture



I didn't think there was such a thing until the 80s.


Sweet Chicken's picture

You should start wearing a helmet. ;)

yogibear's picture

The same fraudsters and financial criminals are back in action. Some just changed the name of their companies. Nobody big that committed fraud was prosecuted. It's business as usual.


LMAOLORI's picture



Hope and change hahaha ZERO criminal prosecutions and now he's free to play to his base again about the evil wall streeter's who paid him off as the statute of limitations expires.

PulledPorkBBQ's picture

Does this imply that with QE3, The Fed is buy toxic sh-- from 2004-2007 for full price, rather than properly underwritten loans (albeit with low downpayments) in MBS from 2012?  That would be a nice detail to see on The News.  <snort>

Super Marco's picture

The Big Short, that was kinda dick... but this guy is such a boss!

francis_sawyer's picture

Birnbaum? What's he ordering for lunch in that foto?

q99x2's picture

My question is that when there is no money to be stolen from productive processes how long can theives steal from each other before the collapse takes place?

There must be masses upon masses of stolen wealth piled up in the system. No one will ever have to work again at this rate.

We should have elections every year.

Oh regional Indian's picture

I want to know what ZH is paying GetZeeGold for posting first with some random one-liner. Usually funny, but still, it does set the trend for comments.

Eh, Mr. Get?

Curious minds and all.


francis_sawyer's picture

He has a co-located connection... You have to pay extra for that...

kito's picture

@ori--dont be envious because his algo is faster than your algo..............its the way of the future.................start tweaking.................

GetZeeGold's picture



Hey.....my brain just works really fast.


Sorry Amigos.......I'll dial it down.


Mercury's picture

Good for him.

The bottom line is that the government has been setting up the incentive structure here that makes it potentially very profitable to be either long or short various mortgage securities when that would otherwise not be the case if market forces were left alone. 

So, there's your beef.

But I fail to see how it is evil to be short subprime and then/also evil to be long subprime.

Maybe it's just not a great idea to make or take on a loan that has a slim chance of ever being repaid in the first place.

LouisDega's picture

Wow, Thats a lot of money.

toomanyfakeconservatives's picture

Watch the ending scene of 'Bioler Room" when the paddy wagons and prison buses pull up to the fictional "JT Marlin" headquarters to arrest all the fictional financial criminals. When the BRICs alliance of nations dumps the dollar for international trade, FED and BIS go tits up and the coming MASS ARRESTS occur. No WWIII, just the sweet sound of handcuffs racheting tight on everyone from Obama, Geithner, and Brenanke on down.

Hubbs's picture

It's stories like me that convince me to try to educate my daughter on a dual path:


1.) The snake-oil salesman career of finance, in the hopes that maybe she'll strike it rich, for doing no useful productive work, but rather learning how to game the corrupt system. In any event, she'll understand how the forces of evil conspire against her. Ironically, if she follows this path, I will have lost a daughter and the devil will have gained a soul.


2.) Useful productive career as engineer, scientist, farmer, geologist, biologist etc. and accept the fact that when you actually work hard at doing this kind of productive work, you wind up having to surrender your kill to the clan of Hyenas in 1.)


In otherwords, the unfair law of the jungle/Srengetti still rules: It takes as much work to avoid getting ripped off as it does to earn that which the bankers/Wall Street come right up and snatch from you without having to do anywork.


Bastille Day needs to be revisited on Wall Street and the Federal Reserve.



supafuckinmingster's picture

Another jew making a killing from tainted financial markets.............ho-hum.

Downtoolong's picture

Of course, none of these f@&$kers will ever bother to pose the question - Why do we have subprime mortgages in the first place? 

loveyajimbo's picture

Is massive banker corruption a JEW thing?  Is total failure as a President a Kenyan mulatto thing?  Is massive celebration of illegal parasites a Mexican thing?  Let's knock of the PC game and call a spade a spade.

supafuckinmingster's picture

Big US finance is, on the whole, a Jew thing. Saying it ain't so is racist!!!

booboo's picture

"No, I'm not a recovery but I play one on T.V."