Paulson and The Beard are facing the panel. What glee!
11:30: Lots of hammering away on the issue of mortgage foreclosure assistance. If the issue was bad lending, the argument goes, why aren’t we doing more for foreclosure assistance?
What other plans did the Treasury consider before adopting the plan that is before the congressmen and congresswomen now? (This should be good).
Paulson: Oh, the market, baby, the market is the answer. Except when it isn’t. When you “have to buy mortgages or securities way above fair value” (emphasis mine).
Bernanke: “As you know I am a student of financial crisis and financial history.” Indeed!
The situation we have now is unique and new. It’s not about failing institutions. Our amazing financial innovation is so amazingly complex, we can’t handle it like those simpletons, the Japanese.
Q. What banks would be eligible to participate?
All of them. (Ahem).
Q. How do you rationalize bailing out foreign banks to the taxpayer. I need your help here.
Paulson: The American Public doesn’t care who owns the bank. (So long as they get the cheapest mortgage, I think the subtext is).
Senator Shelby: How do you justify banks that were the root cause of this problem, and permit them to profit?
Paulson is VERY angry at the idiots on Wall Street (ahem).
Senator Shelby: What’s the worst case if it doesn’t work? None of your other plans worked.
Paulson: FRE, AIG worked the way they were supposed to. We need to inject capital, establish price liquidity.
Senator Shelby: What about the homeowner?
Paulson: Let’s face it, some of them are just shit out of luck.
Senator Johnson: His wife wrote his speech for him I think. What “punitive action” is being taken?
Paulson: *Bob* *Weave* (Ahem) Equity wipeout… *Duck* *Cover* Paulson is shocked, SHOCKED he tells you, to learn that regulatory systems are old in here. Damn state level regulators had no clue what they were doing. We need to federalize mortgage origination regulation.
The problem is the regulatory system which Congress, past administrations, future administrations(??) who let it happen. (Don’t ask me, I don’t think I heard that wrong).
Senator Johnson: Should the Federal Government regulate all insurance given AIG’s failure?
Maybe.
Senator Johnson: Hey, Cox, how’d you figure out how to put on the Short Seller Ban list?
Cox: Well, we just set criteria. The exchanges determined which firms qualified.
Senator Johnson: Should the Federal Government regulate all insurance given AIG’s failure?
Maybe. Maybe not.
Paulson: What’s a firesale price? Probably what the firm’s have them marked down to already. Now he’s forced to explain a reverse auction to the panel. The point here is price discovery.
Senator Robert Bennett: How do you have price discovery without other bidders?
http://gawker.com/5053635/yup-it-really-is-the-greatest-depression-lol
I love the degree to which “punitive” is a part of the dialogue here. How punitive can you be to a going concern? Is a 20% haircut enough? Doesn’t sound like the Congress thinks so. Color me surprised.
I also love how time pressure is a continual theme of Congressional hearings. Used to cut off the opposing party, the witness, anyone we like. But, we are still run off at the mouth worse than even EP whenever it suits us so there.
Woops. I think Cox forgot his mic was live there for a second. Anyone catch that?\
Note for future Treasury witnesses: The fewer details you give the better. Don’t say “reverse auction” unless you have given all these clowns a glossary with a video tutorial hosted by Sesame Street characters first.
Further note for future Treasury witnesses: Extra-strength antiperspirant is a good idea.
In your face CNBC, we had that Barclays logo on the Lehman building hours ago.
Q:Why aren’t we doing this in tranches? Why can’t you call us and ask for an allowance every $50 billion or so? Could you live with less than $700 billion?
Paulson: Oh no, we couldn’t do that. What would the market think?
Oh no, not the reverse auction again. C’mon Hagel. I know that’s supposed to be a softball, but still.
Did it sound to anyone else like Paulson just admitted that his staff and Hagel’s were busy having touchy-feely meetings late after-hours in the Dirksen Federal Building?
12:31 pm
Notice how Cox isn’t getting any love at all?
Oh, wait, he’s getting some love on the “census.” That’s about what he should be administering I suppose.
Let’s not forget that the RTC v. 1.0 returned money to the taxpayers. Yay!
UH OH! Nothing more dangerous than a congressperson talking on Credit Default Swaps. Is that Hillary? Wow, she got fat. The campaign was hard on her. Oh, wait, never mind.
Wait. Did The Beard just say “Sexual Counterparties” ?
On Senator Johnson:
In Washington, D.C., on December 13, 2006, during the broadcast of a live radio interview with WNAX radio in Yankton, South Dakota, Johnson suffered bleeding in the brain caused by cerebral arteriovenous malformation, a congenital problem that causes enlarged and tangled blood vessels. He underwent successful surgery at George Washington University Hospital to drain the blood and stop further bleeding. As of January 19, 2007, Johnson was undergoing physical, occupational, and speech therapy every day for three hours. This included strengthening exercises to gain mobility and work with parallel bars. His recovery was expected to take “several months.” In his 2007 State of the Union Address, President George W. Bush wished Johnson well.
Wow, don’t we feel nasty and awkward for harassing the guy because he has a hard time speaking.
1:03 pm
Yeah, the Congress really wants blood.
Back to foreclosure assistance. I suppose the taxpayers are watching.
“How long were you the CEO of Goldman Sachs?”
(Spattering of applause from the audience). Hah!
Aw, c’mon. We all know there were no regulations on anything Goldman did. Don’t ask Hank about that stuff. Sheesh!
Harvard Undergrad Who Inspired The Big Short Hoping To Change Wall Street From The Inside
Do A Lot Of Hedge Funds Bounce Back From 86 Percent Losses?
Let's Have A Serious Discussion (About Tiger's Texts)
Shia LaBeouf Has Learned A Few Things From His Time On Wall Street
What Sort Of Investment Advice Is The Pope Giving Out These Days?
I love how Christopher Cox got burned seconds after he spoke for giving a transcript of his testimony only 20 minutes before the hearings (instead of giving it yesterday as the Fed and the Treasury did).
CD: Tell us about this plan you’ve come up with.
BB: We told you we were going to buy these hard-to-value assets cheaply, but turns out we’re going to buy them at the banks’ model marks instead. After all, they know better than the people who’re trying to buy this paper.
Also, I’m an academic economist. I shouldn’t be held responsible for the people I’m trying to bail out. HP told me to do these things. This is not my plan, nor do I understand it, but I stand by it. Completely.
CD: How does this benefit the homeowner?
HP: Well, we’re focusing about providing liquidity and bailing out my buddies, who’re facing higher yacht operating costs. Homeowners were not a primary concern. I guess we’ll buy HELOCs which are basically worthless, and will forgive those loans. So essentially, we’re helping the homeowners.
“bailout”? this ain’t no “bailout”! this is a “rescue PLAN”…
http://www.youtube.com/watch?v=eGDBR2L5kzI
Paulson: “I share your frusturation, but it is much better than the alternative”
BULLSHIT. Give me the alternative.
Any idea how any of this “increased liquidy/capital flow” is going to trickle down to the consumer?
Because IMO this plan is going to be about as successful, in actually helping taxpayers, as Regan’s trickle down economics was.
Berenake belongs in the halls of higher learning – not anywhere close to the actual real world.
ok this Tim Johnson guy (D-SD) can barely read. I think he might have downs.
Hank needs to get his head out of his ass on mark to market regs.He’s got this habit of not thinking more than 2 steps ahead and digging in his heels due to “principle” as he watches wealth vaporize while he temporizes.
HP: The consequences are dire. The consequences are dire. The consequences are dire. The consequences are dire.
HP: You’ll be busy long after I’m gone, dealing with the consequences.
HP: Some homeowners will lose their houses regardless. However, we have to make sure that none of my buddies lose their banks.
HP: Lending will help homeowners pay their mortgages. (S: By lending them more money for the interest payments?)
HP: Sovereign ratings are going to shit anyway. Might as well make my cut before I leave you idiots. Forty days baby.
This is the most amusing rape of the US taxpayer.
Equity Private, could you please not write as though you were speaking? A really great line of dialogue tells the actor/ reader how to say it. Your writing just isn’t such quality. Either get better at what you’re trying to do with your wriitng style or give up on such verbosity and write like keystrokes matter.
@merkin – I was thinking the same thing, or he may have had heart attack which often results in slurred speach. that was painful to watch…
You will have zilch, nihil, zero, nothing.
But securitised autoloan and credit card debt might get bailed. I don’t know hoe much you’d need. But I suppose the autoloan bailout will be used mainly to bail out the big three – Ford, GM, Chrysler. Credit card bail out is tricky, will be interesting to see how it works out, that is, if it happens.
I agree with your opinion that this plan will have to trickle down to the ordinary consumers in order to have the maximum impact. But the fear is the “American comsumers” will go back to their old ways of spend spend spend…………….
Also, the Paulson thinks he can maximise the bang for buck if he keeps total control over the use of the funds.
InvestorCluzo,
He had a stroke just after being elected if I remember right… It was interesting that his staff gave him some of the best questions to ask…
What a giant group of babbling idiots… the whole lot…
Why not allow Chrysler, Ford and GM to take over the debt? They’ve been losing money for years and are still in business. I bet they yawned when they heard how much capital went down the shitter as a direct result of all the intellectual capital in the financial community.
HP: This is not about the companies. This is about the American public. I plan to ravage you before I leave, because the slow bleed of increasing bank failures wasn’t nearly as amusing.
@4, come on! you can think of the alternative.
Shut down all interbank lending and proceed from there.
I think the main difference with this “crash” compared to previous crashes is that even the debt guys got it wrong.
The old adage of “the debt guys are always right” or “the debt guys are always right, before the equity guys anyway” didn’t apply this time around.
#15 Shut down interbank lending………..Great idea
Let me ask you a question:
How many banks in the US are cash-positive daily? That is, a bank generates enough cash for its own use and enough to lend to others in the interbank market.
Q,Q,Q: How are you going to value these assets?
HP: We don’t know, and you’re too stupid to understand these complex instruments. So we’re going to hire the same people who created them.
The beard should just answer “aren’t you guys the ones who’ve been running the Iraqi and new Orleans bailouts? K, then why don’t we try my idea before you bumble-fuck-it-all-up-again. Thank you for your time.”
ouch… Beard was just bitch slapped…
“…Thats where I am going to cut you off at the knees right now…”
Go, Janet!
http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aSpHggzxsEJk
#18
Why overanalyse the problem.
Just bring 20 eager sellers of these toxic waste and 20 potential buyers of the same. Lock them in a conference room for 6 hours and I’m sure they would get down to a price range.
@16…debt guys always get it wrong.Almost all systemeic risks come from debt, not equity.
FUNdamental @ 19 wins for quote of the day thus far
*golf clap*
Full transcript:
Shit.
I know shit’s bad right now, wid’all that starvin’ bullshit. And the duststorms. And we runnin’ out of french fries and burrito coverin’s.
But I got a solution.
Now I understand everyone’s shit’s emotional right now, but listen up.
I got a three point plan to fix everything.
Number one: we got this guy Not Sure.
Number two: he’s got a higher IQ than any man alive!
And number three: he’s gonna fix everything.
I give you my word as president.
He’s gonna fix all the problems with the dead crops; he’s gonna make them **grow again**.
And that ain’t all.
(Singing.) I give you my word: he’s gonna fix the dust storms too!
(Singing.) I give you my word: he’s gonna fiiiiiiiix, the ecomony!
(Singing.) And he’s so smart, he’s gonna do it all in one week!
http://www.youtube.com/watch?v=cxJnf5tkfoo
Hankie/Benji — you’re doin a heckuva job. I’m sure this whole mess will be shored up in no time, just like Nawlins.
I read Bernanke’s statement. He doesn’t praise the specifics of the “plan.” I think he lives in his own erudite world where the consequences of unchecked power don’t intrude too much. I passionately believe the Fed should be independent, but I also believe that it is imprudent for the Fed Chairman to become so closely allied with the Treasury Secretary, who is a member of the cabinet and a political appointee. I believe Bernanke is going forward in all good faith — but I think there is an interplay of legal ideas he’s either missing or following and rubberstamping. Not very becoming for a man who is supposed to be apolitical.
Paulson is another story altogether. He regrets having to trample on the separation of powers and the rule of law, but he recommends unchecked authority for himself. This is not a political naive. This is a man who started his career as an aide to John Erlichman, a notorious and high-ranking Nixon operative. This is a man who forced out Jon Corzine to become CEO of Goldman Sachs.
Consider the levels of power and intrigue Paulson has already successfully navigated. Consider who his friends are, and how in touch he is with the world of the average American. Then consider the number of times he has been right in the last year. Finally, consider if you want to give unchecked power to this man.
@ 5 “Berenake belongs in the halls of higher learning – not anywhere close to the actual real world.”
That’s why he is there so WS can jerk him around. Same reason neocons picked W.
@16 – disagree with you on that one. Graph CDS or credit spreads (for those with a liquid curve) against the share price of any major financial institution and I’ll bet you’ll find that the debt guys were on to this well ahead of equity. Not neceessarily smarter than the equity guys but when you don’t have any of the equity upside with all of the downside risk, it makes you paranoid.
pretty scary that the Chairman of the Senate banking committee has received not 1 but 2 sweetheart loans from Mozillo. No wonder this congress cannot get anything done
#22, so true, so true. Problem is, they really don’t want to know the real value until AFTER the bill is passed. Please, please get with the program.,,lol
#13, yes they probably are laughing their asses off.
You know Hank is here, fighting for his crown and you guys aren’t given him the proper respect.
Has anyone noticed that a lot of the questions have been posed right here and on other internet venues discussing the issue.
People get to posting, their will be an entire afternoon of questions we can have them ask.
i’m # 31, tried to correct under preview before posting and it didn’t work. Apologies.
anal – thx for the claptastic endorsement. I’ve been thinking, maybe moving to London or something is a good idea?
EP – FDIC returned every dollar they took in. RTC lost about $100b (peak balance of $130b, total ~$600b channeled — rough numbers).
RTC also helped Wall Street launch the previously unpopular ABS/MBS products. It was easier to liquidate the vanilla mortgages once you packages the crap with the decent ones.
Watch out for CDO^4 as they try to liquidate $700b of slime.
http://www.fdic.gov/bank/historical/managing/index.html
Uncle Ben keeps talking about “bringing in the experts”. Why haven’t they “brought in the experts” already? What are they waiting for?
Hey! Did Cox just say “on the other hand giving regulators authority doesn’t mean it’ll be used in ways that’ll disrupt the market.”??? Rewind Tivo. Yep. Yep. That’s what he said less than a week after his panicked ban on short selling of an ever growing list of companies.
#29 – I have to say I agree with you. I still remember Enron’s debt plunged to 11 cents on the dollar before the equity analysts start lowering their ratings.
#31 – I think most of us now know why Paulson wants these above the law powers.
27, are you daft? paulson wants a carte blanche to protect him/treasury from the more thank likely CDS ‘operatives’ lawsuits. you can’t please everyone in this mess. problem is nobody will trust him, though he’s well intended.
Hammering has turned into Stammering Hank. Stuttering Hank should embrace 20% warrant dilution of any bank that accesses the $700 Billion, and tell Congress to shut and lets go make some money together…
Instead we have the Sec of T telling Congress to give him a mega line of credit to play, but one he personally wont be using much of it he says…
In my opinion, the buying of assets at mark to myth levels has to be balanced with dilution. The free walk to the Bank of Citizens is not going to pass the turd test in Congress… Those critters understand the smell of fertilizer…
Instead, these guys are cracking under the questions of Congress Critters… That is almost scary in and of itself.
~SEG
Anyone notice the pink “Bail Out of Iraq” sign someone’s waving around behind Beard’s head?
Oh my, did Uncle Ben almost say “stupid”? Good thing he self corrected before it came out of his mouth. It would not be a good idea to call the American public stupid.
“Does Wall Street owe Americans an apology?”
You know, I’d rather spend 700 billion taxpayer dollars on this gambit than pay the senator that asked that question one red taxpayer cent.
@17, I don’t know the answer to that question.
My point was that if interbank lending shuts down due to liquidity or adverse selection, we will come to know the meaning of dire consequences.
EP, don’t live blog anymore. This is awful.
I would assume most of these politicians can’t even balance their checkbooks — having to hear them struggle to understand anything abstract is giving me a headache.
Just passing this along:
SUBJECT: REQUEST FOR URGENT BUSINESS RELATIONSHIP
DEAR AMERICAN:
I NEED TO ASK YOU TO SUPPORT AN URGENT SECRET BUSINESS RELATIONSHIP WITH A TRANSFER OF FUNDS OF GREAT MAGNITUDE.
I AM MINISTRY OF THE TREASURY OF THE REPUBLIC OF AMERICA. MY COUNTRY HAS HAD CRISIS THAT HAS CAUSED THE NEED FOR LARGE TRANSFER OF FUNDS OF 800 BILLION DOLLARS US. IF YOU WOULD ASSIST ME IN THIS TRANSFER, IT WOULD BE MOST PROFITABLE TO YOU.
I AM WORKING WITH MR. PHIL GRAM, LOBBYIST FOR UBS, WHO WILL BE MY REPLACEMENT AS MINISTRY OF THE TREASURY IN JANUARY. AS A SENATOR, YOU MAY KNOW HIM AS THE LEADER OF THE AMERICAN BANKING DEREGULATION MOVEMENT IN THE 1990S. THIS TRANSACTIN IS 100% SAFE.
THIS IS A MATTER OF GREAT URGENCY. WE NEED A BLANK CHECK. WE NEED THE FUNDS AS QUICKLY AS POSSIBLE. WE CANNOT DIRECTLY TRANSFER THESE FUNDS IN THE NAMES OF OUR CLOSE FRIENDS BECAUSE WE ARE CONSTANTLY UNDER SURVEILLANCE. MY FAMILY LAWYER ADVISED ME THAT I SHOULD LOOK FOR A RELIABLE AND TRUSTWORTHY PERSON WHO WILL ACT AS A NEXT OF KIN SO THE FUNDS CAN BE TRANSFERRED.
PLEASE REPLY WITH ALL OF YOUR BANK ACCOUNT, IRA AND COLLEGE FUND ACCOUNT NUMBERS AND THOSE OF YOUR CHILDREN AND GRANDCHILDREN TO WALLSTREETBAILOUT@TREASURY.GOV SO THAT WE MAY TRANSFER YOUR COMMISSION FOR THIS TRANSACTION. AFTER I RECEIVE THAT INFORMATION, I WILL RESPOND WITH DETAILED INFORMATION ABOUT SAFEGUARDS THAT WILL BE USED TO PROTECT THE FUNDS.
YOURS FAITHFULLY MINISTER OF TREASURY PAULSON
The more these guys talk the lower SPX falls.
Since it appears to me that Uncle Sam isn’t going to take any significant punitive action against the “Wall Street Executives”, you know, against those greedy, incompetent bastards who are despised by everyone, and who stuff their own pockets with tens of and hundreds of $millions after fucking up astronomically, and who now expect a massive influx of govt funds to help them continue on, may I suggest the following measure:
Punishment by the people directly. Take a few of them out, which implies kill them for those of you who don’t know what “take them out” means.
Take out a few of “Lehman’s 30 greatest assets”, Och or Zif, a few from the GS executive ranks, a few ballers from MS, maybe Schwartzman, maybe Steve Cohen, perhaps the pansy-ass Griffin from Citadel, some from JPM or UBS. They’re all guilty.
It wouldn’t take many. Three or four at most would add a whole new meaning to the “fear” part of “greed and fear”.
I don’t know what else to suggest. Enough people have been injured by the bastards; maybe it’s time to dispense some real justice. WTF do their miserable lives mean anyway? I doubt if anyone would give a shit.
Those worms are easy targets too. It’s not like they have Secret Service agents around them.
The Guy from Delaware
#47, that is hilarious. I think they are trying to make clear to “Hanky Panky” that we aren’t too keen on this “crowning him king” thing.
“1:03 pm
Yeah, the Congress really wants blood.”
Equity Private, I hope you get fired. We have been asking you for several days now to get better at what you do, but you’ve been flatly ignoring us and throwing your freshman college level compositions in our faces.
Please take a journalism class. It’s only $25/ unit at the local junior college. At the very least take the bus to the library and glance over a few book on grammer. I hate you for making me hate this site.
“grammer”
Perhaps the gentleman meant spelling?
@51-
Go away.
signed,
guest.
apology? you want an apology? well, let me talk around that silly statement senator. you see, I made my millions and I don’t need your $hit! do you want my help or not, because I’m not up for reelection and don’t give a rat’s a$$ how this shakes out. I’ll live on interest alone…how’s that for an apology?
seriously, could these guys stop grandstanding and get to the matter at hand. they’re playing with my social security checks!
@ 51
I cannot top the greatest comment ever to appear on dealbreaker. So i will use it in the context to which i think it best applies.
Seriously, take your right hand…bring your fingers in to your palm, now fold your thumb over. Tada a fist.
Now take that fist, and power bomb your own anus.
Investorcluzo@#54…
Apologies aren’t going to cut it for anyone. Apologies aren’t going to help with those social security checks either.
Please re-read my entry @#49. The smart-mouthed individual you quote in you post is the kind of jerk I refer to also.
The Guy from Delaware
Too much “if” and “hope” in the statements from everyone. Hello, gentlemen, we are dealing with big bucks here and we want guarantees.
I would expect nothing less that the suggestion of vigilante justice by TGFD.
Excellent American idea – lets kill some guys because that is really going to help this situation!
Hecka of a job TGFD!
TGFD – you’re a know nothing. Most of those guys you listed have bodyguards (esp. now if they didn’t before), and you can probably imagine the caliber.
Q: Surely you’re not thinking of buying second liens?
BB: Well, the second liens are being marked at cents to the dollar, surely they’re worth more. Besides, the first lien negotiations are related to the second liens, and we might have to um, address that other issue…
At least we’ll have a public record admitting that they’ll buy worthless paper so that the other worthless paper they’re buying looks less worthless. For a while.
Wow, it is getting tough in that room Shelby, a republican, just had the audacity to ask for a clear plan.
Hummm time… Ben says they want to buy the old sloppy second mortgages that are worthless… so they can renegotiate the firsts to lower levels…
These guys are going to end up buying worthless credit card debts before this is over…
~SEG
OMG, Gasparino is reporting that the executives at AIG who had money in the executive savings plan may end up being creditors of AIG?
Cluz: Why you worrying about soc sec. By the time you collect it will be means tested and if we’re lucky none of us will pass the test. BTW, scoped out stk. Looks perfect for the next date with my teenaged nieces, who love anything sex in the city like, which means mpd. We’re there. GAnalYst
#62, I’m starting to get really angry. I took on very little debt and have paid all my bills. So now, for doing everything the right way, I’m being punished. While all my friends who have taken on an enormous amount of debt, refinanced their homes several time to “take out cash”, gone on luxurious trips, bought anything they wanted even if they had to go into debt, will be rewarded?
What is wrong with that picture?
Why all the hate for EP? Live blog this event yerself or listen in on CSPAN, but don’t bitch about the quality of a freebie.
65 I assume that the punishment you refer to is future taxation. Your friends will pay it just like you. Plus they’re not getting any free ride from the take out cash are they? They need to pay it back. So how are you being punished more then them?
Whoever wins should appoint jim cramer as the new sec. tres.
@67
Precisely. 65 is a joke. Whether or not the govt buy the credit card debt has no effect on his friends. Just because the govt buy over the debt doesn’t mean his friends’ debts are forgiven.
@#58,@#59…
What’s wrong with vigilante justice when justice comes by no other means?
Check out the link below. I saw it on Drudge Report a few minutes ago. Somebody agrees with me.
http://www.timesonline.co.uk/tol/news/world/asia/article4810644.ece
Bodyguards? Do you know for sure about them, or are you just imagining what you say? Many employees know where the big shots live. The security guards are expendible; they take the risk when they take the job.
I just picked out a few names. There must be hundreds of others you know about too.
BTW, you clowns are pretty smart. You must know who the security companies are in NYC. Has their business picked up? Now there’s an investment idea…Go long on security services.
The Guy from Delaware
So I guess cutting the greedy bastards heads off and sticking them on a pike is out of the question for a concession from congress to pass this 700,000,000,000 plus line of credit.
Hell lets just make it an even 1,000,000,000,000 dollars, its just a printing press.
Paulson is a snake, I know the guy is a slow talker due to all the greedy thoughts he is trying to hold back from saying. If we could just get an honest answer from this guy and then it would be clear that the motivation for this loan is his own self interest.
Bernake is so full of himself. His justification for this bailout is history. “I studied what happened in 1929, so our plan will work this time”
The longer they try and prop this house of cards up, the harder the eventual fall.
What gets me about all these derivative products that were sold, no one seems to have an answer on the downside of these products.
When I took those higher math courses it was funny that the CPA and accountant types only brushed a little of the calculus that taught derivative math. Now here we are and no one can give an answer. The answer is that the high yeild derivative will give you an extremely high pos number and an extremely high neg number.
Hank just said he won’t write things down.
Nice Hank. Did you know we can get transcripts of everything you say. Even the things you say on the Sunday Programs that you now deny.
They went through all of this and the markets, even thinking there will be a bailout, are still behaving like they did last week.
What is going on?
Delaware’s own Joe Biden…
“When the stock market crashed, Franklin Roosevelt got on the television and didn’t just talk about the princes of greed,” Biden told Couric. “He said, ‘Look, here’s what happened.’”
“On the television”? In 1932? Good grief. He wants to be VP?
The Guy from Delaware
Wasn’t Hoover the president in 1929?
Biden garbles Depression history
Joe Biden’s denunciation of his own campaign’s ad to Katie Couric got so much attention last night that another odd note in the interview slipped by. He was speaking about the role of the White House in a financial crisis.”When the stock market crashed, Franklin Roosevelt got on the television and didn’t just talk about the princes of greed,” Biden told Couric. “He said, ‘Look, here’s what happened.’”As Reason’s Jesse Walker footnotes it: “And if you owned an experimental TV set in 1929, you would have seen him. And you would have said to yourself, ‘Who is that guy? What happened to President Hoover?’”
Senator, we live in a world that has Wall St., and Wall St. has to be guarded by men with $700 billion. Whose gonna do it? You? You, Senator? I have a greater responsibility than you could possibly fathom…. You have the luxury of not knowing what I know. That Lehman’s death, while tragic, probably saved lives. And that my existence, while grotesque and incomprehensible to you, saves lives. You don’t want the truth because deep down in places you don’t talk about at parties, you want me on Wall St., you need me on Wall St.
I have neither the time nor the inclination to explain myself to a man who rises and sleeps under the blanket of the very prosperity that I provide, then questions the manner in which I provide it. I would rather you just said thank you, and went on your way, Otherwise, I suggest you pick up a wad of cash, and stand a post. Either way, I don’t give a damn what you think you are entitled to.
@71
Extremely low number?
And I think that Paulson has enough money to sit around and watch birds.
Maybe he’s there trying to do his best to help the economy, I can’t imagine that he has a basement full of toxic assets he needs to unload…..and I don’t think that he can hold too much stock seeing that he’s the secretary of the the treasury.
This fund should pare losses back to something that is survivable for the financial system, and let everyone else eat it.
Sure, it would be a bloodbath, but we would learn not to do this stupid @^&* again.
Paying anywhere near face for this slime is retarded.
@71:
Derivative means there is an underlying. In the case of RMBS the underlying is loan, the collateral of which is somebody’s house.
You’re suggesting a bimodal payoff distribution (high yield = +value; low yield = -value). And how does this apply to home values? It doesn’t. Home prices aren’t going to 0, nor are recovery rates.
If the govt is going to fuck with markets, they might as well stack the deck: buy these assets and then put a floor on home prices. You do that and the value of those derivatives will be much higher.
@80 I thought we, from time to time, combat inflation? You want to make inflation a policy?
@GAnalYst – glad to see I can keep up with your teen-age nieces! btw, I’m not really worried about ss, but jane and joe 6-pack watching at home are. I just wrote it for the effect.
@TGFD – too long, didn’t read. but it looks like others have opined.
@ 71 -
I don’t believe he should be crown king. His plan needs oversight and transparency. However, the lack of those requirments does not make him a snake.
He is in an impossible position.
Paulson is worth over $500 million. If i were him i would tender my resignation tomorrow.
No matter what he does, most of the American public is going to see him as a self dealing player. Like short sellers he is going to scapegoated.
Enjoy Phil Gramm as the next Treasury Secretary
@83
Paulson accepted Tresury position from the president.
I think Paulson realized what was going to happen, thats why he is Tresury Sec.
Reminds me of Kennedy when he cashed out before 1929.
I think Paulson has friends he wants to take care so they do not wack him.
Bernake sees what Paulson is doing, one last rape before the crash, maybe if they print enough money everyone can wallpaper their houses that they do not own anymore with that grant from King Tresury Sec.
At least the walls will look nice.
I don’t think Paulson is doing any of this for his personal financial gain. I do think he knows Wall Street, and mistakes its welfare for the welfare of the country.
There is something in Paulson that is deeply megalomaniacal. Like many a rich man, he aspires to be remembered for something other than his money. He’s already being compared to Hamilton. I don’t think he is going to walk away from the seduction of immortality.
Having said that, I am completely opposed to giving him extralegal powers. I’m willing to live through whatever may come before I’d abandon the Constitution.
I do not believe Paulson is doing any of this for personal financial gain. I believe Paulson knows Wall Street and sincerely believes that what is best for Wall Street is best for the country.
I think there is a deep streak of megalomania in Paulson. Like many a rich man, he has reached the point where he wants to be remembered for something other than his money. He’s already being compared to Hamilton. That’s heady stuff to walk away from, and I don’t think he will. I think he wants to achieve immortality.
I am 100% opposed to giving him or anyone else extralegal authority. His plan, which has no guarantee of working, violates the Constitution in a number of ways. My God, people, remember your heritage!
What about section 8 of the proposed bailout? No judicial review what so ever?
#85, your comment “Having said that, I am completely opposed to giving him extralegal powers. I’m willing to live through whatever may come before I’d abandon the Constitution.”
is exactly what the American people are saying loud and clear. Problem is that no one is hearing them.
#84, your comment “Bernake sees what Paulson is doing, one last rape before the crash, maybe if they print enough money everyone can wallpaper their houses that they do not own anymore with that grant from King Tresury Sec.
At least the walls will look nice.”
is wholly frightening. Are you saying that this is what has been going on for over a year?
Perhaps if this is even slightly true, we need to replace Paulson and Bernanke immediately.
Bernanke: “As you know I am a student of financial crisis and financial history.”
…and now, he is the master
I forgot to say: TGFD, stfu. Nobody is going to kill anyone over this. I know you’re excited by all your TV watching, but it’s quiet time now.
My summary of the hearings today:
The incoherence of the senators was only matched by the incoherence of Paulson and Bernanke.
Assume the position… the lobbyists have this one in the bag. Now lets go back to work and unfreeze those frozen markets.
Adult?@#90…
My last post on this thread was more than 3 hours ago, and it wasn’t even about “killing anybody”.
As for your assertion, it (killing somebody) happened in India today.
I wouldn’t be so naive as to think it won’t happen here. These are strange and tumultuous times. Everyone is pointing the finger at the irresponsible Wall Street executives. It could get very personal indeed.
I wouldn’t care if they did get whacked anyway. It would do the system some good.
The Guy from Delaware