Paulson realized if house prices stopped rising and mortgage delinquencies kept growing, a wave of defaults was inevitable. :
John Paulson explained his famous bet against the US housing bubble in a recent episode of Finanze, a podcast hosted by Logan Lin, a 17-year-old student at a California high school. The billionaire investor - who converted his Paulson & Co hedge fund into a family office last year - detailed how he anticipated the housing market's collapse, shorted about $25 billion of securities, and scored a $15 billion windfall.