and why many are push for financial reform. our allan chernoff explains how goldman sachs allegedly bet against you and your neighbors. >> reporter: this is the house jack bought. jack in aberdeen, new jersey, repairman. jack fell behind in his mortgage. so far behind that he lost the house to a foreclosure. on monday it was put up for auction at the momnmouth. this is hedge fund manager john paulson. he bet that jack and thousands other americans would not be able to pay their mortgages. paulson bet right and made a billion dollars. this is goldman sachs, the nation's most prestige use investment firm. goldman sachs set up the bet for john paulson. jack's house was one of the cards. and goldman sachs was supposed to be shuffling the deck. german bank ikb bet that jack and thousand other homeowners