mongon Posted September 28, 2008 Report Share Posted September 28, 2008 Paulson was CEO and Chairman of one of the biggest investment banks on Wall St (Goldman Sachs) until Bush brought him on board in 2006. Paulson presided over the entire scheme of mortgage backed securities, made billions for his firm and millions for himself selling it to everyone. Then Goldman sachs started betting against the stuff after they sold it to every one else. Last week Goldman Sachs had to convert to a commercial bank so it can get its hands on depositors money to keep from going insolvent. And so ended investment banking on Wall St as we knew it. So with his record of using MBSs to run the biggest ponzi scheme in history; and his jumping ship on his firm just two years before it went under, you gotta wonder what he is doing presenting a plan to congress claiming it will fix the disaster he and his fellow investment bankers created. It is especially surprising considering that his plan to save fannie and freddie just two months ago ended up actually being the precise cause of fannie and freddie finally collapsing. He completely fucked up and had to nationalize them as a result. You should also note that Paulson's previous bailout of several competitors of Goldman sachs resulted in completely wiping out shareholder value. However, if Paulson gets his way with this $700b plan, Goldman's share value will likely rise. Wonder how much goldman stock Paulson and his lifelong friends at Goldman own? (Paulson worked there 30 years) For those of you who remember how miserably your media failed to dig up the actual facts in the run up to the Iraq war, I know you are not assuming they are getting to the bottom of the biggest negative redistribution of wealth in world history. I've seen conflicts of interests but Paulson might be setting a world record with his. Don't expect CNN to break the story anytime soon. Link to comment Share on other sites More sharing options...
mongon Posted September 28, 2008 Report Share Posted September 28, 2008 For you republican bashers out there, right now the only thing standing between wall street and $700B of working americans money are republicans. There is big pressure on them to cave and the plan will likely pass the House tomorrow and the senate sunday unless the Rs in the House can convince enough dems to go against it. The Rs in the Senate except for a few are already in favor so keep an eye on the House. Link to comment Share on other sites More sharing options...
.. Posted September 28, 2008 Report Share Posted September 28, 2008 I wouldn't go that far (saying the GOPers are saving us), but it is interesting watching the posing on this issue right now... We do agree on this issue however -- see, a fascist & a commie *can* get along LOL! Cheers, SD Link to comment Share on other sites More sharing options...
shygye Posted September 28, 2008 Report Share Posted September 28, 2008 The House Republican "plan" is even worse! Their plan involves massive tax breaks for the Wall St firms, "insurance" on toxic debt ala AIG, and zero accountability on CEOs and corporate boards. I am sure firms would buy the "government insurance" on near worthless debt and then immediately make a claim to collect 100% value! The middle class taxpayer gets to pay the bill for all of Wall St, even firms that are not in trouble, under the House Republican plan. Link to comment Share on other sites More sharing options...
Old Hippie Posted September 28, 2008 Report Share Posted September 28, 2008 Actually, it is 100% the banks fault. The banks paid the mortgage brokers higher commissions on these toxic loans instead of the 30y fixed rates. Some mortgage brokers were faking the income levels of loan applicants. The banks never checked the info on the loans. The banks were getting rich selling the loans and collecting fees for managing the loans. Those that should sink are the flippers, not 3-5 years but 3 to 6 months, and those home buyers that got money at closing, ie >100% mortgage. NOT 100%, but I am starting to come around on this a small fraction. I do recall the mortgage lenders telling me, I could have up to XYZ amount of "unverifiable income" considered. In other words, a LIE on my part. But still, the bottom line comes down to me taking it or not. As I said, there was enough information out there for anyone considering such a move. Link to comment Share on other sites More sharing options...
Old Hippie Posted September 28, 2008 Report Share Posted September 28, 2008 Not that I want persoanl harm to come to these guys, but I want to see these CEO fat cats named be mentioned more in the media and the pols. The S&L scandal in the '80s had names to go along with it, like Keating. Enron did as well. Know one knows off hand who the CEOs of Lehman Brothers, WaMu or Merrill Lynch are. Names like McCain, Bush... Link to comment Share on other sites More sharing options...
mongon Posted September 28, 2008 Report Share Posted September 28, 2008 I think the Rs in the House were shell shocked when Bush dropped this bailout bomb on them. They strongly oppose the bailout, are fed up with Bush, but if all they do is say no to the bailout and present no solution themselves, they will look bad. Normally the Rs would go to the president to put together an alternative plan because he has the experts. But in this case bush is the one they are fighting against. So they put together a plan very quickly themselves to use as cover. Who knows if creating an insurance program for MBSs would work. But they have been pushing it and now the insurance proposal has been put in the draft of the agreement. I fear the Rs leadership will now cave and support the agreement. They may have a revolt on their hands from the fiscal conservative Rs who will still vote against it. The final agreement is not out yet but I;m certain it will have no impact on the basics of the proposal because Paulson opposed the insurance program. ----------------- Lawmakers, Bush reach tentative bailout deal Voting in Congress may start today By CHARLES BABINGTON and ALAN FRAM Associated Press Sept. 28, 2008, 1:09AM WASHINGTON â?? Congressional leaders and the Bush administration reached a tentative deal early today on a landmark bailout of imperiled financial markets whose collapse could plunge the nation into a deep recession. House Speaker Nancy Pelosi announced the $700 billion accord just after midnight Saturday but said it still has to be put on paper. "We've still got more to do to finalize it, but I think we're there," said Treasury Secretary Henry Paulson, who also participated in the negotiations in the Capitol. "We worked out everything," said Sen. Judd Gregg, R-N.H., the chief Senate Republican in the talks. He said the House should be able to vote on it today, and the Senate could take it up Monday. The plan calls for the Treasury Department to buy deeply distressed mortgage-backed securities and other bad debts held by banks and other investors. The money should help troubled lenders make new loans and keep credit lines open. The government would later try to sell the discounted loan packages at the best possible price. At the insistence of House Republicans, some money would be devoted to a program that would encourage holders of distressed mortgage-backed securities to keep them and buy government insurance to cover defaults. The legislation would place limits on severance packages for executives of companies that benefit from the rescue plan, but details were sketchy. Also, the government would receive stock warrants in return for the bailout relief, giving taxpayers a chance to share in financial companies' future profits. To help struggling homeowners, the plan requires the government to try renegotiating the bad mortgages it acquires with the aim of lowering borrowers' monthly payments so they can keep their homes. Link to comment Share on other sites More sharing options...
kamui Posted September 28, 2008 Report Share Posted September 28, 2008 Actually, it is 100% the banks fault. The banks paid the mortgage brokers higher commissions on these toxic loans instead of the 30y fixed rates. Some mortgage brokers were faking the income levels of loan applicants. The banks never checked the info on the loans. The banks were getting rich selling the loans and collecting fees for managing the loans. Those that should sink are the flippers, not 3-5 years but 3 to 6 months, and those home buyers that got money at closing, ie >100% mortgage. That's why there is no loan crisis in Germany. In Germany for to finance a house you always need to bring a substantial amount of money. With this system we have two results: - People who never could afford a house never will own one. - Real estate price increases are in the 5% bracket or less. This prevents short term speculation and a mortgage bubble like in the UK or Ireland. Sometimes it has it's advantages to live in a society which is a little boring because it is fond of regulations. Link to comment Share on other sites More sharing options...
mongon Posted September 28, 2008 Report Share Posted September 28, 2008 Thats a good system. In the U.S., we have the dems pushing for mortgage loans to low income people who could not otherwise qualify. Because the dems care about people and want the gov to help. But the Barney Franks and the Bill Clintons don't care much about the obvious consequences of having the gov lower lending standards. So americans pay $700b to wall st. to buy the shitload of junk loans that flooded the market. To add injury, the bill clintons and barney franks blame it all on deregulation. Yeah right. Link to comment Share on other sites More sharing options...
chuckwoww Posted September 28, 2008 Report Share Posted September 28, 2008 I've seen conflicts of interests but Paulson might be setting a world record with his. Don't expect CNN to break the story anytime soon. I bet Paulson and Co see nothing wrong with what they did. They probably think they deserve to make big money. They won't blame themselves because the mortgages collapsed. And now they're doing their best to sort the mess out. Link to comment Share on other sites More sharing options...
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