After profiting from the crash, hedge fund manager bets on recovery

Hedge fund manager John Paulson is betting that the foreclosure crisis won't get as bad as many fear -- at least not for homeowners most able to pay off their mortgages.

Paulson famously made billions of dollars on prescient wagers that the bubble in U.S. home values would burst, decimating the value of securities linked to subprime mortgages. Now he's putting his money on housing again -- but this time he thinks bonds backed by home loans to sound borrowers are too cheap to resist.