There was another hedge fund guy in Dallas who made billions betting against mortgage securities, just like this guy. But before he invested, he spent years explaining to everyone that the mortgage market was doomed. People laughed at him. He finally placed his bets and ended up being right.
From your comments, you have a fundamental misunderstanding about how these markets work. Investors in CDSes don't cause anything to happen. It's like betting on a horse race. Your money has no impact on how fast the horses run. If you want to be mad at someone, why don't pension fund managers hire analysts to do their own research rather than blindly trust the sharks on Wall St.? Ultimately, it's their fault for losing everyone's money. Wall St. merely sells the products that people want.
From your comments, you have a fundamental misunderstanding about how these markets work. Investors in CDSes don't cause anything to happen. It's like betting on a horse race. Your money has no impact on how fast the horses run. If you want to be mad at someone, why don't pension fund managers hire analysts to do their own research rather than blindly trust the sharks on Wall St.? Ultimately, it's their fault for losing everyone's money. Wall St. merely sells the products that people want.