by: Greg Gordon | McClatchy Newspapers

Goldman Sachs failed to disclose that they knew there appraisals of home values had been inflated. (Photo Illustration: Jared Rodriguez / t r u t h o u t; Adapted from: dandeluca, respres)
Washington - In 2006 and 2007, Goldman Sachs Group peddled more than $40 billion in securities backed by at least 200,000 risky home mortgages, but never told the buyers it was secretly betting that a sharp drop in U.S. housing prices would send the value of those securities plummeting.