NationStates Jolt Archive

Should this moron be fired? How much damage has he caused since this problem started? Everytime I see him the guy is crying chicken little and that causes fear which hurts the market. The dems were right is demanding this dumbfuck be canned.

His name is Henry Paulson?

What happened to Robert?

Hey, it could be worse. You could not have Henry Paulson, then you'd be like Europe and heading straight for doom.

Seriously, I'm not sure the design of the bail-out plan was the best possible. From what I can tell, the design of the British one seems more reasonable (rather than take bad loans to shift the balance of debt vs equity, ie reduce the debt, the Brits put money into shares, which increases equity).

Some blame that on his links with Goldman Sachs. I think a reasonable explanation is probably just that someone brought up the RTC from the Savings & Loan Crisis and the department worked itself into a bit of a rut where they stopped considering any alternatives.

I think what I'm saying is that someone needs to be the central figure with the knowledge and ability to take decisions. That involves calling things as they are, and exposing yourself to criticism. No doubt many will come out of this hating the guts of Henry Paulson - many already do. But better him than no one.

And besides, if he was removed now...do you really think Congress would select a good replacement? Or that it would do so before 2025?

Why is there no "HTF is this Paulson character" option?

Hey, it could be worse. You could not have Henry Paulson, then you'd be like Europe and heading straight for doom.

Seriously, I'm not sure the design of the bail-out plan was the best possible. From what I can tell, the design of the British one seems more reasonable (rather than take bad loans to shift the balance of debt vs equity, ie reduce the debt, the Brits put money into shares, which increases equity).

Some blame that on his links with Goldman Sachs. I think a reasonable explanation is probably just that someone brought up the RTC from the Savings & Loan Crisis and the department worked itself into a bit of a rut where they stopped considering any alternatives.

I think what I'm saying is that someone needs to be the central figure with the knowledge and ability to take decisions. That involves calling things as they are, and exposing yourself to criticism. No doubt many will come out of this hating the guts of Henry Paulson - many already do. But better him than no one.

And besides, if he was removed now...do you really think Congress would select a good replacement? Or that it would do so before 2025?



Warren Buffet.

But the market reacts to what he says, right now he is doing nothing but crying chicken little and the market reacts negative to that, what has he done to instill some confidence in the market?

Warren Buffet.
And what would Warren Buffet do?

But the market reacts to what he says, right now he is doing nothing but crying chicken little and the market reacts negative to that, what has he done to instill some confidence in the market?
Hmmm, it escapes me, but I could have sworn there was some...what was it...oh, yes (http://en.wikipedia.org/wiki/Emergency_Economic_Stabilization_Act_of_2008). :tongue:

Anyone check out his press conference today? Apparently now the bill has passed, there is no real rush after all. And of course, in the interim, a few more banks will inevitably fail. (Not foldman sachs, of course). So, about that desperate need to restore confidence hank...? More banks to fail you say? Well that makes me very confident.

I call shenanigans. He's another one that is headed for the orange jump suit and the little bedroom with the stainless steel toilet in the corner.

British plan much better. Lacks transparency measure. Too light on the punishments. Will cause anger in the future. Next year prob.

You have to remember, the guy is not some business wiz though. He's more on the office politics side. (Ask Corzine).

Hey, it could be worse. You could not have Henry Paulson, then you'd be like Europe and heading straight for doom.

Seriously, I'm not sure the design of the bail-out plan was the best possible. From what I can tell, the design of the British one seems more reasonable (rather than take bad loans to shift the balance of debt vs equity, ie reduce the debt, the Brits put money into shares, which increases equity).


Some columnist, probably Paul Krugman, suggested this, buying preferred stocks from the banks instead of their bad debts. It does seem to make more sense. In fact, is there any advantage to doing it Paulson's way, at all?

Some columnist, probably Paul Krugman, suggested this, buying preferred stocks from the banks instead of their bad debts. It does seem to make more sense. In fact, is there any advantage to doing it Paulson's way, at all?

Yes. As paulson outlined. Some banks go tits up. Foldman buy distressed assets for pennies on the dollar. TARP opens. Goldman resells to TARP in reverse aution for 70-80c. Goldman profits.

Though the reality is that part of this deal is to buy distressed assets from overseas orgs. A preferred stock dealio wouldn't allow that. I'd guess a couple of hundred billion is going abroad.

in financial crisis, we have names. his name is henry paulson.

Hmmm, it escapes me, but I could have sworn there was some...what was it...oh, yes (http://en.wikipedia.org/wiki/Emergency_Economic_Stabilization_Act_of_2008). :tongue:



And how has that worked out so far? He also seems in no real rush to put it into action. Atleast Buffet has actually used his own money to stabilize some companies. One of the few things Obama and McCain agree on, Buffet as a top choice to take Paulson's job in January.

Some columnist, probably Paul Krugman, suggested this, buying preferred stocks from the banks instead of their bad debts.
It's been what pretty much the entire community of economists have agreed upon. But Paulson isn't an economist, and neither are the people in Congress. Let's face it, it's not like anyone there presented an alternative plan with any substance - they just wanted to make sure they can do something that would get their angry constituents to shut up.

One of the few things Obama and McCain agree on, Buffet as a top choice to take Paulson's job in January.
And if he wants to do it, I don't see why not. He understands the business, and he's not a Wall Street insider. His preference has always been to do deals for the long haul.

But realistically, firing Paulson now wouldn't do any good. A solution project was chosen, is being worked on and that's what we've got to play with for now.

in financial crisis, we have names. his name is henry paulson.There I was, pressed between Henry's sweaty bitch-tits.

Warren Buffet most definitely is a wall street insider. Look beyond the folksy crap liek sees candy and chewing gum. This is why he never splits BRK.A.

Anyway, he's not going to take the job. To do so he'd have to divest his BRK. And he loves that more than life itself. U should have heard his panic when the house rejected the bailout the first time.

Note for people who R paying attentions to all this: Warren Buffets PERSONAL moneys is all in treasuries. Now you know that, act accordingly.

Warren Buffet most definitely is a wall street insider. Look beyond the folksy crap liek sees candy and chewing gum. This is why he never splits BRK.A.
What I mean is, he's not as involved in the politics of the place as Paulson is. But I guess I could be wrong.

Anyways, here's some news: http://www.businessspectator.com.au/bs.nsf/Article/US-Treasury-considering-taking-stakes-in-banks-K94XF?OpenDocument
US Treasury considers ownership stakes in banks
Reuters

WASHINGTON -- US Treasury Secretary Henry Paulson said a recently approved financial bailout bill gives him wide authority to inject capital into the banking system and would not rule out having Treasury take an ownership position in banks if necessary.

"We will use all of the tools we've been given to maximum effectiveness, including strengthening the capitalization of financial institutions of every size," he told a news conference ahead of a Friday meeting of Group of Seven finance ministers.

The British government on Wednesday pledged hundreds of billions of pounds to rescue its banking system and Paulson ducked a direct answer when asked whether the next step for the United States might be some similar form of recapitalization.

"I'm not going to speculate on all the things we may have to do," he said. "I would simply say we have a broad range of authorities and tools...to work with going forward here."

[...]

His name is Henry Paulson?

What happened to Robert?

You ducked into an alternate universe while you were asleep. Sorry.

Seriously, what the hell else could he do? I'm pretty sure Robert Rubin would be getting the same treatment for the financial crises in Mexico and the 98' crisis were we not so fortunate as to be in a period of strong economic and equities growth during that same period.

Seriously, what the hell else could he do? I'm pretty sure Robert Rubin would be getting the same treatment for the financial crises in Mexico and the 98' crisis were we not so fortunate as to be in a period of strong economic and equities growth during that same period.

I think, and there is some justification in this, it's not so much that action is being taken, but rather the way it is being taken.

It looks an awful lot like a GS plot. At the very least he could have found someone from MER to act as Hank Jr. For appearance sake if nothing else.

Anyways, here's some news: http://www.businessspectator.com.au/bs.nsf/Article/US-Treasury-considering-taking-stakes-in-banks-K94XF?OpenDocument

I am thinking that it is this..

Federal Reserve
Target Rate 1.50
Prime Rate 4.50
1-Month Libor 4.29
3-Month Libor 4.52
^
^
^

How do you make money when UR cost of borrowing is higher than the prime rate? I am saying that all these banks are zero until this changes. And nobody is getting money from them. (Well not quite, because there are side deals, but still).

So I think Henry is finding his first plan is not working. And now he is onto plan B. Soon he will have to add the Lacadaemon modifications.