Thursday, March 5, 2009

Henry Paulson

- Goes by "Hank"!

- Eagle Scout!

- Worked for John Ehrlichman -- Republican and felon -- during the Watergate break-in and cover-up!

- CEO of Goldman Sachs during the inflation of the sub-prime mortgage bubble!

- Received total compensation from Goldman of more than half a BILLION dollars!

- As CEO, convinced the SEC to release Goldman from the net capital rule -- exposing the bank to more risk than ever before!

- Also convinced the SEC to lessen regulatory oversight of risk-taking by investment banks!

- Named U.S. Secretary of the Treasury in 2006 -- by fellow Harvard Business School alum George W. Bush!

- As Secretary of the Treasury, charged with overseeing the same banking industry which had made him as rich as Midas!

- In March 2007, said, "An open, competitive, and liberalized financial market can effectively allocate scarce resources in a manner that promotes stability and prosperity far better than governmental intervention"!

- In August 2007, claimed the sub-prime mortgage crisis was "contained"!

- After coming to the aid of Bear Stearns earlier in 2008, in September allowed Lehman Brothers to fail -- sending the global economy into a death spiral!

- On September 15, 2008, called the U.S. banking system "safe and sound"!

- Later that month, asked Congress to give him $700 billion to bail out the banking industry and thaw frozen credit markets!

- Initially tried to get Congress to give him absolute, unchecked power to do what he deemed necessary to save the financial system!

- Told Congress and the public that the bailout money would go towards purchasing "toxic assets" -- but gave the money to his banker buddies instead!

- Gave bailout money to banks with no requirement to use the money to make loans -- and no oversight of how the banks actually use the money!

- Bailout recipients used taxpayer money to pay bankers billions of dollars in "performance related" bonuses!

- Word on the Street is that billions of dollars in AIG bailout money have gone to pay off bets by Goldman that the sub-prime market would collapse!

- Never required that Goldman, or any other bank, reveal the extent of sub-prime mortgage-related investments -- resulting in continuing distrust of banks, and an ongoing credit crunch!

- Under Paulson's watch, two of the four major investment banks disappeared; only Morgan Stanley and Goldman Sachs -- Paulson's former employer -- remain!

- Claimed that the last thing he wanted to do with the bailout was cause a moral hazard among his banker buddies!

- Diagnosis: utterly deluded, or in possession of deep reserves of chutzpah!

- Idiot!

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