With the biggest bailout in US history defeated, the biggest loser may be the architect and the man who would have accrued the most power under the plan--Treasury Secretary Henry Paulson. So who is he in fact?
Paulson worked in the White House and the Pentagon during the Nixon administration. He's insisted that no one really “understood” the subprime mortgage mess, which is why it was allowed to encompass so many people and cause so much damage. He understood it ok, though. Like other top Wall Street operators, Paulson made a personal fortune, estimated at three-quarters of a billion dollars, at the top of investment bank Goldman Sachs--a fortune that included money made from subprime mortgages.
Just by way of a reality check, the average US citizen owns very little or no stock. A recent government report found that just 36 percent of workers had any savings at all in a retirement account. So much for an “up” market helping the masses. Blacks and Latinos are getting hurt bad. They were targets of subprime mortgage sellers. Blacks will lose between 71 and 92 billion dollars; Latino borrowers will lose between 75 and 98 billion, according to a report by United for a Fair Economy.
Under Paulson's plan, Goldman Sachs would have undoubtedly played a role in the sale of defaulted properties to be transfered to the government. Transferring wealth from poor kids, blacks and Latinos to superrich Wall Streeters--would be Bush's parting shot. Funny thing is, Congress has been hearing from their voters. And today Congress didn't go for it.
Unfortunately, you seem to have left out the bipartisan “fix” on the bailout. To whit: Goldman-Sachs one of biggest contributors to both Obama and McCain. Goldman-Sachs, (prior?) home to Paulson, current Treas. Sec. and Rubin, Treas Sec. under Clinton, major proponent of financial deregulation, including repeal of Glass-Steagall, now involved with Citigroup and economic advisor to Obama. Both Goldman and Citi are major beneficiaries of bailout at a time when some of their rivals have been allowed to bite the dust. Buffett buys in to GS a day after it is allowed to reorganize as a “bank holding company” but GS stocks go up 2 hours before announcement. Who’s the “insider” here?
C’mon guys, this whole things smell from either nostril. Wait and see if Rubin doesn’t wind up as Treas. Sec. if Obama wins. If you want another perspective, why don’t you talk to Kucinich, a Dem. who voted NO on this bailout.
Sorry, I know you guys love Obama, but “he’s no FDR”. I think you are really missing the big picture, here. Your “hope” is as misplaced as would be the $700 billion if this deal had passed.
Don’t get me wrong, McCain is a wolf. But I think you do your viewers a disservice by not pointing out that Obama is a wolf in sheep’s clothing. Or, if you prefer another canid, whether blue or red, both foxes are raiding the hen house and are eating both your nest eggs and the chickens who laid them.
(Sorry for double post, but THIS is where I think it belongs)
By Aquifer on September 29th, 2008 at 9:28 pm