Every day or so, Henry Paulson realizes he has made a big mistake and then attempts to fix it by making an even bigger mistake. Every episode of this ongoing farce costs the American taxpayers hundreds of billions of dollars. Why doesn’t President Bush fire him? A vacancy would be much cheaper than Henry Paulson for the next two months.
For example, he first gave AIG an $85 billion loan that was “protected” by warrants that gave the government in the event of a default, the right to purchase a controlling interest in the insurance giant. Why he did not take all of their legitimate assets as collateral instead demands a federal investigation. After taking their notoriously extravagant $400,000 vacation, the bigwigs at AIG returned and told uncle Henry that they wanted another $40 billion. Because he had structured such an incredibly stupid initial deal, he was forced to give them another $40 billion. He dug the hole deeper.
Surprise! Edward Liddy of AIG found that the extra $40 billion was so nice that he informed uncle Henry that AIG wants another $27 billion of U.S. taxpayer funds. Of course now that Paulson had already dug us into a $123 billion hole, he dug even deeper to $150 billion! If AIG comes back next week and wants another $50 billion, we all know what uncle Henry will do. Some of these companies need to be allowed to fail. Remember Penn Central Railroad, Eastern Airlines and Pan Am? The world got along without Nash Rambler and Studebaker.
Until the Clinton/Rubin phony loan factor is purged from the financial system, it will remain clogged. In October 2007, over $50 billion of bundled loans were sold as securities and the $50 billion was then able to be loaned again. One year later AFTER THE $700 BILLION BAILOUT AUTHORIZATION, less than 1$ billion was pumped back through the financial network. That is because all of the institutions are still carrying the Clinton/Rubin baloney loans as assets on their balance sheets, and no one else will lend against those “assets.”
Unfortunately, uncle Henry has become quite popular. Now the auto industry wants tens of billions, and other industries also are elbowing their way into the federal hand out line. When was capitalism voted out of existence? Paulson needs to be fired immediately – and investigated!
For example, he first gave AIG an $85 billion loan that was “protected” by warrants that gave the government in the event of a default, the right to purchase a controlling interest in the insurance giant. Why he did not take all of their legitimate assets as collateral instead demands a federal investigation. After taking their notoriously extravagant $400,000 vacation, the bigwigs at AIG returned and told uncle Henry that they wanted another $40 billion. Because he had structured such an incredibly stupid initial deal, he was forced to give them another $40 billion. He dug the hole deeper.
Surprise! Edward Liddy of AIG found that the extra $40 billion was so nice that he informed uncle Henry that AIG wants another $27 billion of U.S. taxpayer funds. Of course now that Paulson had already dug us into a $123 billion hole, he dug even deeper to $150 billion! If AIG comes back next week and wants another $50 billion, we all know what uncle Henry will do. Some of these companies need to be allowed to fail. Remember Penn Central Railroad, Eastern Airlines and Pan Am? The world got along without Nash Rambler and Studebaker.
Until the Clinton/Rubin phony loan factor is purged from the financial system, it will remain clogged. In October 2007, over $50 billion of bundled loans were sold as securities and the $50 billion was then able to be loaned again. One year later AFTER THE $700 BILLION BAILOUT AUTHORIZATION, less than 1$ billion was pumped back through the financial network. That is because all of the institutions are still carrying the Clinton/Rubin baloney loans as assets on their balance sheets, and no one else will lend against those “assets.”
Unfortunately, uncle Henry has become quite popular. Now the auto industry wants tens of billions, and other industries also are elbowing their way into the federal hand out line. When was capitalism voted out of existence? Paulson needs to be fired immediately – and investigated!
