Friday, January 8, 2010, 12:58AM ET - U.S. Markets open in 8 hours and 32 minutes.
As bad a year as the stock market is having, Treasury Secretary Paulson is having an even worse one, according to William Black, Associate Professor of Economics and Law at the University of Missouri.
The professor, who was counsel to the Federal Home Loan Bank Board during the S&L Crisis and blew the whistle on the "Keating Five" in 1989, says Paulson deserves an "F-minus" for his role in the financial crisis.
"All of his policies made [the crisis] worse," says Black, citing Paulson's:
"And he gets the worst grade because as head of Treasury he's also in charge of banking and thrift regulation," Black continues, noting he "destroyed" rather than beefed up supervision. "I hope you like the consequences."
Black, author of "The Best Way to Rob a Bank Is to Own One," says there's ample reasons why the financial markets have lost confidence in the Secretary.
He also notes Paulson steered Goldman Sachs into subprime and alt-A mortgage securities before becoming Treasury Secretary in 2006. Goldman began shorting those instruments shortly after Paulson's departure, he notes.
The current crisis is "not a hundred-year flood, that suggests it's an act of God caused by random forces," Black says. "This was one cause by bad policies, the same policies that have caused prior crises."
Paulson might have gotten an F- grade but he did get $700 billion for his friends.
I do not like politics and political figue topic.....It is nice topic but I had enough.....It all yours..........good people............
Not exciting topic anymore....All yours.........
how about not bailing out Lehman Brothers? just an act towards increasing the market of goldman sachs had created this big mess...he put special interests before the nation's, he should be put in jail...
Paulson the pedigree of GS is the king of leverage. With leverage of others money (depositors) Wall Street maintained a mirage of earnings leave alone earnings growth. What should we expect from him, a last hurrah in doling out taxpayers money to his buddies.
Let's see: Paulson sucks and Bush is a war criminal. And there are no words to describe Cheney. What they do all have in common is the name REPUBLICAN!
Good Lord, wait till the inevitable inflation starts from all the additional "deficit" spending on "bailouts" that have no guarantee of solving the crises. Think it's bad now?
It's really sad, we, the american public get screwed again, by our elected officials. Millions of tax payer dollars passed around like candy to officials and CEO's of companies who couldn't figure their way out of paper bag !!! Give the money BACK to the states and local governments, as well as the people, who can invest in the local infrastructure to generate jobs and give people spending capital. It can't be that hard to figure out giving millions to a car manufacturer CEO is like giving the fox access to the hen house !!! Paulson and Bernake are idiots!
Why are we blaming Paulson for all of this? What about George Herbert Hoover Bush?
11-21-2008 In FINANCIAL TIMES Nov. 21, 2006, exactly two years ago today, Paulson is quoted to seek more flexible US market rules. He said US needs more flexible approach to regulation of capital markets, and he said the US based rules system is not flexible enough. Also he points out that US had four seperate banking regulators, with a similarr dynamic in securities and exchange. He is quoted to say "enforcement and guidance was more likely to be more effective and more efficient that to rely on enforcement alone." Suppose he is happy now, two years down the road. He introduced sub prime with his former employer, then came to US government. HIs hire by Bush to US money oversight is nothing less than another example of lack of judgement by George Bush and most of his administration. We will pay for his many errors for decades & more. 11-21-2008
Deregulation, and the unwillingness of so many people to live within their means, is the cause of all of this. There should always be rules to keep people from doing stupid things because they think they are getting a deal, or they are desperate, especially when so much is at stake. Of course, these stupid things are the most profitable for the banks and others. Zero percent interest...nothing is free...you are paying the interest up front. Pay day loans...the interest on these things is criminal. Interest only adjustable rate mortgages...criminal...but highly profitable for the banks. So much more. Hold the govt responsible. At every oppertunity vote out the incumbent. To the people who live above their means...thanks a lot.
Deregulation, and the unwillingness of so many people to live within their means, is the cause of all of this. There should always be rules to keep people from doing stupid things because they think they are getting a deal, or they are desperate, especially when so much is at stake. Of course, these stupid things are the most profitable for the banks and others. Zero percent interest...nothing is free...you are paying the interest up front. Pay day loans...the interest on these things is criminal. Interest only adjustable rate mortgages...criminal...but highly profitable for the banks. So much more. Hold the govt responsible. At every oppertunity vote out the incumbent. To the people who live above their means...thanks a lot.
11-21-2008 In FINANCIAL TIMES Nov. 21, 2006, exactly two years ago today, Paulson is quoted to seek more flexible US market rules. He said US needs more flexible approach to regulation of capital markets, and he said the US based rules system is not flexible enough. Also he points out that US had four seperate banking regulators, with a similarr dynamic in securities and exchange. He is quoted to say "enforcement and guidance was more likely to be more effective and more efficient that to rely on enforcement alone." Suppose he is happy now, two years down the road. He introduced sub prime with his former employer, then came to US government. HIs hire by Bush to US money oversight is nothing less than another example of lack of judgement by George Bush and most of his administration. We will pay for his many errors for decades & more. 11-21-2008
PAULSON NEEDS TO SEE BuBu in prison for a few years!!
This what the text book perspektive view. even buffet says Paulson is the best man to solve this problem. Don't listen this guy, the bank is sound and will round after 1-2 years.
You have a point Finance User. We already have Bushvilles re. Hoovervilles of the 30's. The difference the nuevo-poor are considered criminals and prosecuted (for child neglect or many other laws designed to persecute them), they will not get much attention in our ever expanding prison system.
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madmilker - Friday November 21, 2008 02:57PM EST
tats 4 letters higher than i would give the dipstick!