Paulson admits he doesn't know wtf he's doing - Mercedes-Benz Forum

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post #1 of 54 (permalink) Old 11-12-2008, 04:48 PM Thread Starter
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Paulson admits he doesn't know wtf he's doing

Bush's Man From Goldman Sachs, our Treasury Secretary, has changed his mind yet again about how he's going to throw away our children's earnings.

This is the guy who first said "The problem is contained, Trust us, Everything will be OK.. Our financial systems are relatively stable" and then turned around screaming "OH MY GOD, THE WORLD WILL COLLAPSE WITHIN THE NEXT FEW DAYS IF YOU DON'T GIVE US $700 BILLION. WE HAVE A PLAN BUT THERE'S NO TIME TO EXPLAIN, JUST GIVE US THE CASH!!!"

Now he says he's changed his mind about how he's going to give it away and who he's going to give it away to.
"...in a striking admission, Paulson said that buying up mortgage assets (the original plan) "is not the most effective way" to use government funding.

Purchasing these so-called "toxic" assets was once the cornerstone of the rescue plan for financial markets and was almost the entire focus of Congress when the package was being debated before its enactment. But almost as soon as Treasury received the money, it decided that giving capital to banks in return for preferred stock was a better use of the funds...

Some of the money saved from not buying mortgage assets will now be used to shore up the market for credit-card receivables, auto loans and student loans, according to Paulson...

The plan to shore-up asset back securities is not ready yet, he added. "This will take weeks to design and then it will take longer to get up and going."

Paulson declined to say how much it would cost...

Alex Merk, president of Palo Alto Calif.-based Merk Investments, a mutual-fund firm, said that market participants were frustrated with Paulson's communication skills and changing tactics.

"He's been flip-flopping... it doesn't look like he has a plan," Merk said in an interview. "

"I doubt this is going to have a big offset to the really dramatic fall in consumer spending that we're going to see in the coming year," said Martin Feldstein, an economics professor at Harvard University.

Meanwhile, sweeping proposals to modify mortgages remain on the table, Paulson said. The cost of these programs will be substantial and don't belong under this rescue package, he added.

On a related matter, the Treasury secretary pointed out that funding for the U.S. auto industry should also not come out of the financial-market rescue plan.

Paulson flips the script on financial-rescue plan - MarketWatch
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post #2 of 54 (permalink) Old 11-12-2008, 04:53 PM
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post #3 of 54 (permalink) Old 11-12-2008, 04:59 PM
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It was frightening to watch him today. "I don't know what's wrong, I don't know how to fix it, and I can't tell you how we're going to spend your money." Other than to fund YET ANOTHER expensive junket last weekend for the AIG bigwigs. Yes, as they sat poolside (yet again) between spa visits as Rome was burning, our tax dollars vaporized.
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post #4 of 54 (permalink) Old 11-12-2008, 05:03 PM
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post #5 of 54 (permalink) Old 11-12-2008, 05:52 PM
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post #6 of 54 (permalink) Old 11-12-2008, 06:03 PM
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Well, his replacement will have some plan in 68 days. So ol' Hank can amble off into the sunset with his golden parachute with Dick and Jane.

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post #7 of 54 (permalink) Old 11-12-2008, 06:16 PM
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The era that defined Wall Street is finally, officially over. Michael Lewis, who chronicled its excess in Liar’s Poker, returns to his old haunt to figure out what went wrong. The more that I think about this article, the more I realize that Hank Paulson must have known what was coming. He must have realized that the situation he helped to create was about to blow up. I am thinking that he accepted the job of Treasury Secretary in order to save his reputation and try to become part of the solution instead of being remembered as part of the problem.

The End of Wall Street's Boom - National Business News - Portfolio.com

When devils will the blackest sins put on, they do suggest, at first with heavenly shows - Othello
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post #8 of 54 (permalink) Old 11-12-2008, 06:36 PM
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Originally Posted by cozette View Post


The era that defined Wall Street is finally, officially over. Michael Lewis, who chronicled its excess in Liar’s Poker, returns to his old haunt to figure out what went wrong. The more that I think about this article, the more I realize that Hank Paulson must have known what was coming. He must have realized that the situation he helped to create was about to blow up. I am thinking that he accepted the job of Treasury Secretary in order to save his reputation and try to become part of the solution instead of being remembered as part of the problem.
It's not working, and the odds are it will not now. Paulson needed to be on top of this at the end of 2006 to make a difference OR much more aggressively back in March when Bear Sterns failed. They had to know the full extent at that point, it was just too obvious. Now he is just going to be the guy who gets saddled with the blame [and that is only partially true].

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post #9 of 54 (permalink) Old 11-12-2008, 06:54 PM
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Name one member of the Bush administration who knows what he or she is doing.

The sad state of the country is the silent testimony to that.

Last edited by p100; 11-12-2008 at 06:59 PM.
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post #10 of 54 (permalink) Old 11-12-2008, 07:00 PM
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Name one member of the Bush administration who knows what he or she is doing.
Barney is the only one that comes to mind.


When devils will the blackest sins put on, they do suggest, at first with heavenly shows - Othello
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