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                   TigerSoft Blog - 11/29/2011 - Freedom News Service.
                 See also

                   Henry Paulson Took
            Washington Corruption and
Wall Street Cronyism To Dizzying New Highs!

                                                               PART II

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                The Axis of Crony Capitalism  - Goldman Sachs and The US Treasury

                  Part 1 -  
            See also

           Our TigerSoft's main themes are Insiders Always Know First on Wall Street and
        If you want to make money there, you must Learn How to Spot Their Buying
        and Selling.  

       Paulson's Secret Morning Meeting at Eton Park.
                  with Hedge Fund Managers and
                 5 Goldman Sachs Professional Traders

                                                                                     - July 21

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                                                          Paulson's Tip To Sell Short

In the early Summer of 2008, now home prices were crashing and foreclosures were
                at record levels.  The economy was on the brink. Most vulnerable were the two government
                backed home loan enterprises, Freddie Mac and Fannie Mae,  which held more than $5 trillion
                in mortgage backed securities.  They had guaranteed 90% of American home loans. How could
                they survive?  In mid-July 2008,
"Paulson had been pushing a plan in Congress to open lines of
                credit to the two struggling firms and to grant authority for the Treasury Department to buy equity
                in them... (He) had told reporters   on July 13 that the firms must remain shareholder owned
                and had testified at a Senate hearing two days later that giving the government new power to
                intervene made actual intervention improbable...

This is not what he told the insiders. At Eton Park,  till weeks before the Public was told how
                grave the financial situations was at Fannie Mae and Freddie Mac,  George Bush's Teasury
                Secretary Henry Paulson secretly advised a dozen, or so, Wall Street insiders that Freddie
                and Fannie would go bankrupt if Congress did not infuse them with huge sums.  At the meeting
                were some of the biggest short-selling hedge fund managers and trader friends of his from
                Goldman Sachs where he had been CEO from 1999 to 2006.  At teh time,  Freddie Mae was
                over $11 and Feddie Max was over $7. 

                Paulson provided these Wall Street insiders a perfect opportunity to bet against America
                at the expense of everyone else who did not have this information....  When news of his
               massive bank bailout plans were made public, the Dow Jones average fell 3500 points lower. 

                That Fannie and Freddie Mae were in dire financial straits had not been said publicly
                is very clear.  To the contrary, the next day the NY Times reported that Paulson's
                examination of Fanie and Freddie's books was expected to reassure the stock market.

                           "After a perfunctory discussion of the market turmoil ... the discussion turned
                           to Fannie Mae and Freddie Mac. Paulson said he had erred by not punishing Bear Stearns
                           shareholders more severely...  (Paulson)  went on to describe a possible scenario for
                           placing Fannie and Freddie into “conservatorship” — a government seizure designed  
                           to allow the firms to continue operations despite heavy losses in the mortgage markets.

                           "Paulson explained that under this scenario, the common stock of the two government-sponsored
                          enterprises ... would be effectively wiped out.   So too would the various classes of preferred stock,
                          he said.   The fund manager (who disclosed this) says he was shocked that Paulson would furnish
                          such specific information — to his mind, leaving little doubt that the Treasury Department would
                          carry out the plan. The managers attending the meeting were thus given a choice opportunity to
                          trade (on the short side) on that information."

 Besides those from Goldman Sachs, attending were:
                             1) Short seller James Chanos of Kynikos Associates Ltda $6 billion hedge fund. 
                             2) GSO Capital Partners LP co-founder Bennett GoodmanSenior Managing Director Blackstone Group
                             3)   Roger Altman, chairman and founder of investment bank Evercore Partners Inc.; and
                             4)   Steven Rattner, a co-founder of private-equity firm Quadrangle Group
                             5)   Michele Davis, then-assistant secretary for public affairs at the Treasury Department, who now
                              represents Paulson as a managing partner at public relations firm Brunswick Group Inc.
                             6) Eric Mindrich - founder of the Elton Park Hedge funds.
                             7) Stephen Mandel Pine Pine Capital
                             8) Dinakar Singh, Axon Capital Management
                             9) Daniel Och of Och-Ziff Capital Management

                          Below is the Tiger chart of Freddie Mac. ( I cannot locate the data now for Freddie Mac.)
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William Black, associate professor of economics and law at the University of Missouri-Kansas City, can’t understand why Paulson felt impelled to share the Treasury Department’s plan with the fund managers.

“You just never ever do that as a government regulator — transmit nonpublic market information to market participants,” says Black, who’s a former general counsel at the Federal Home Loan Bank of San Francisco. “There were no legitimate reasons for those disclosures.”

Janet Tavakoli, founder of Chicago-based financial consulting firm Tavakoli Structured Finance Inc., says the meeting fits a pattern.
“What is this but crony capitalism?” she asks. “Most people have had their fill of it.”

   TREASURY SECRETARY's INSIDERS' TIPS - Obama will never call for an investigation of Paulson!  If he did, Geithner's banking conversations
would have to be aired.

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                              Small wonder Goldman Sachs does so well trading for its  own account.
                More reading about Paulson             
          Congressman Stearns Questions Hank Paulson How Do You HaVE ANY CREDIBILITY  

                                        Hank Paulson
confronted on foreknowledge of 9/11 and Bailout
                              Hank Paulson, Tim Geitner, Ben Bernanke should be tried for TREASON


                          DJIA 2008 Chart with Peerless automatic Buys and Sells.
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   wpe4.jpg (4423 bytes)      1) Short seller James Chanos of Kynikos Associates Ltda $6 billion hedge fund. 
                “New York is so finance-centric that people here underappreciate the reaction of the rest of the country,” Chanos, who was born in Milwaukee, said yesterday in an interview in New York. “People are angry, they feel the game is rigged, that they didn’t get their fair shake.”

Kynikos President Tells CNBC First Solar Could Fall to ‘Mid-Double Digits’

James Chanos, president of Kynikos Associates LP, told CNBC that shares of First Solar Inc. may decline “mid-double digits.”  May 3.  He was correct.  It stood then at $134.

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“The fact that people are even talking about the government stepping in to shore up the banks, when two months ago people thought there was nothing wrong with the Chinese banks, should tell you just how seriously this situation is deteriorating.” “virtually all of the large banks in China,” said today that the country’s property market is in the “first parts of a very serious pullback.”

         wpe6.jpg (17967 bytes)        Bennett Goodman.   Senior Managing Director Blackstone Group
        What's he Buying or Selling Short?
       More coming...Subscribe to our Hotline and use our Software to see how fresh the insider reports are.    

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