Shorting Subprime: Already Over?

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So Paulson & Co is getting out of the subprime trade? It seems like only yesterday that our little babies were almost in a panic about their short play, complaining to the SEC ththat banks were buying up bad loans in order to contain derivative losses. Remember the era when that might have sounded scandalous, rather than smart, heroic or obvious?
Well, whatever the plot to rescue subprime that Paulson thought it saw, it didn't work out. They've doubled their assets this year, and now run $24 billion.
And now they have reportedly cut their subprime positions by 86%.
Paulson Funds Cut Bets Against Subprime Mortgages [Bloomberg]

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