We're Doomed with Paulson Running Things.
To recap: Paulson has gotten
the taxpayers to give him $700 billion
to give to banks, so that the banks can
then charge the same
taxpayers interest on their money.
It takes a government that
thinks like this to destroy the US $8
The original Paulson Plan had the following wording:
"Decisions by the Secretary pursuant to the authority of this Act are
non-reviewable and committed to agency discretion, and may not be
reviewed by any court of law or any administrative agency."
(I have found arrogance often is used
to disguise incompetence.)
After giving free reign to predatory bankers
for years and wasting many trillion in
a war started on false
pretexts, the Bush Administration has now shackled Americans
with the worst
economy since Herbert Hoover. They never take any responsibility
for their mistakes.
They think only in terms of giving more taxpayer money to their
special clients, the
biggest banks. Like Hoover, Bush and Cheney insist that most
Americans must blindly
trust in the efficiency of the "free market".
Bush and Paulson talk only of "stabalization"and bank liquidity and resist all
"stimulus", "recovery" and government jobs to make
the disappearance of
private sector jobs. Making matters worse, the Bushies
deny the obvious;
namely, that we need to create market confidence now is
more regulation of
exhorbitant CEO pay, of Wall Street (credit default swaps
and short sales) and
bankers (what they can do with the billions given them),
and hedge-fund managers
(who are chiefly rewarded for using excessive leverage).
They seem unaware ob
the obvious, namely that the collapse of the financial markets
and its unnerving
volatility, is a DIRECT RESULT of the Bush administration's failure
to curb dangerous
over-leveraging, over-speculation and short sales. Until they admit
their central role in
the debacle, we are in deep trouble as long as they are in power.
And there are two more
months of Bush and Paulson we have to endure.
There is a Much Simpler Solution? Give everyone in
the US $2600 in crisp $100 bills.
Let them spend it
anyway they want. 2650 X 300,000,000 = about $700 billion.
The banks would soon be
flooded with liquidity. Problem
------- SCAMMING AMERICA-------
Henry Paulson - by day
Henry Paulson - at night.
Paulson Admits He Has NO CLUE
How To Rescue The Economy.
But He Is 100% Sure He Wants The Banks
To Get The Taxpayers' 700 Billion.
At least Paulson did not
say "Mission Accomplished."
A month after Paulson told Congress that the solution was for the government to
buy the banks' toxic assets. Now he just wants to give them the money outright.
Of course, he doesn't say this. He calls it a "capital injection".
Why doesn't he
just give the money back, if this approach will not work? The answer is, of course,
helping the economy was just a pretext for a huge heist, a bank robbery of
The Robber Baron Gang That Could Not Shoot Straight.
On 11/15/2008 Bush told the summit of foreign leaders why he has taken the
bailout steps he has. This comes from Yahoo
"Underscoring how bad things have gotten this time,
President George W. Bush, the summit host, said he
had agreed to the recent $700 billion rescue plan for
U.S. financial institutions only after being told the nation
was at risk of falling into "a depression greater than the Great Depression." "
Bush may have just scared the stock market down another 1000 points! What a bungling
He is dangerously deranged
The truth is that Paulson has no idea what he is doing, except helping his cronies
run banks, rob the US Treasury and taxpayers blind. On September 19th
he said "these illiquid assets are choking off the
flow of credit that is so vital to
the US economy... The federal government must implement a program to remove
the illiquid assets that are weighing down our financial institutions and threatening our
economy." Now he says we
should forget the original plan. We should trust his judgement
once again. (Until March 2008, Paulson maintained there was no financial crisis.)
In September, Paulson, Bush and Cheney scared timid, backboneless Congressional
Democrats into giving them this colossal sum (10% of the value of the nation's goods
and services for a year!) with hardly any strings, very little transparency and
only token Congressional review. TigerSoft warned readers what the consequences
of this would be: complete failure of stated objective, huge new indebtedness and
a bailout for one of the least deserving Úlites in America. Again, we played the
(See our Blog of July 27, 2008.)
Scare Tactics and The Crash.
Paulson and his band of thieves said if the money was not forthcoming, there would
be a "global meltdown:". Not surprisingly, reckless talk like this
dropped the stock
market 30% in three weeks. The DJI fell from 11388 on September 19th to a low of
on October 10th. And, in fact, the market has not recovered. The $700
proved to be one vast theft! It ranks right up there with the $3 trillion Iraq war
and, the entirely avoidable destruction of New Orleans, because levees were denied
Federal funds that would have fortified them before Hurricaine Katerina. So, too,
Paulson Plan has proved to be another abject failure for the Bush Administration, the
country and the global economy. At the same time it has been a huge boondoggle for
banks, bankers and those that are receive dividends from them. (Where previously it
it was Dubai-based Halliburton that has benefitted, now it is huge banks like Bank of
America, CitiGroup, Goldman Sachs, JP Morgan and Wells Fargo.)
What are the banks doing with our money? They are certainly not lending it out.
Long-term interest rates have risen! Banks are buying other banks, paying deferred
bonuses to top bankers and paying dividends to bank investors. Only very, very low
risk borrowers can get loans. Needless to say, not a single banker has been brought
up on charges of corruption and fraud.
Confidence is disappearing quickly. With no requirement that they loan the money
that was given, they are doing everything else but loan money. Unemployment is
very sharply. New claimed wer emore than one half million last week. Nearly 3.9
million are now being forced to live off unemployment chacks. The labor market
is deteriorating quickly. (Source.)
Another 84,868 homes were foreclosed on in October,
a million since July 2007, when we got our famour SELL The Bush Administraton's
response has been Hoover-like. Or to put it charitably as the NY Tines did,
"Paulson from intervening forcefully using
taxpayer dollars on behalf of
an ever-expanding cast of bailout recipients. The tight fist is reserved for homeowners.
That is a huge policy error. The whole point of the bailouts is to stabilize the financial
system. But the system will not stabilize until house prices stabilize, and house prices
will not stabilize until the government finds a way to stanch foreclosures on a large
It would have been infinitely better if each person in the country had been mailed
a check for $2300, the amount of the bailout. Many would have spend it immediately
on necessities. That would have boosted the economy. With a multiplier of 3:1,
that would have boosted the economy by $2 trillion! Think of the jobs that would
Obama, Pelosi and Reed each voted for this bailout. Obama does not walk on water.
Investors will soon see his desire to make friends with the powers-that-be and reach
across the aisle will not serve him well in fixing the economy. He will be
with the very people on Wall Street and in Banks who have created this horrible
mess. This, I fear, will be wholly inadequate for solving the immense financial and
We will be watching Obama's new Administration closely. Comparisons with FDR's
financial reforms will make for fascinating reading.
Socialism for Rich Bankers, More Indebedness for Everyone Else.
THE US ECONOMY IS