Posted by
James Burns on Tuesday, September 30, 2008 11:01:21 PM
Henry Paulson the Treasury Secretary of the United States was also CEO
at one time of Goldman Sachs. So why an inside job? Well lets see:
- Paulson let Leamann Bros. go bankrupt with no help from the government. Leamann Bros. was Goldman Sach's competition.
- Paulson
loans AIG 85 billion dollars. Current Goldman Sachs CEO was the only
private sector person in that meeting. Waving Goldman Sachs 20 billion
dollar risk exposure in AIG.
- Once questions arise about
Goldman Sachs and Morgan Stanley's future based on AIG and Leamann Bros
situations. Paulson jumps and all of a sudden cries fire and wants 700
billion to bail the mess out.
- Paulson under the failed
bill had the right to buy assets at higher prices than what the market
says they are worth, and at his discression. I am sure under that plan
Goldman Sachs assets would be paid top dollar for.
- Paulson
already has a 1 trillion dollar fund to help back these failed mortgage
securities. Why ask for more? His counterpart at SEC has the power
suspend mark to market rule. Basically revaluating the market to its
true value.
So why doesn't Paulson and the administration use the tools it has
already, which needs no congressional input to solve this problem. I
will repeat what I have stated in another post I have made, economist
have come out and stated by suspending mark to market could jump value
of all these assets to 500 billion infusing liquidity almost instantly.
Well here we have made most of the 700 billion by the stroke of the
pen. 200 billion could be in loans for those who still are in trouble
if needed.
My feeling, Paulson has a lot to gain with the current bailout plan
that has failed. His old buddies have a lot to lose if they have to pay
loans instead of free money. Plus like stated before Paulson's
discression at the price paid for assets would benefit those parties.
So was this bailout for the personal gain of some government officals?
Research and see, make your own opinions. But sounds to me like a Good
Ole Boys network.