Tuesday, September 23, 2008

Is Treasury Sec'y Paulson an incompetent buffoon or a bald-faced liar?


Greg Bacon's blog

Is Treasury Secretary Paulson an incompetent buffoon or a bald-faced liar?

Let's look at some of the things King Henry has said this past year regarding the taxpayers being soaked to the bone for Wall Street excesses. Back on March 16, when Bear Stearns was being bailed out, to the tune of billions, Paulson was upbeat about Wall Street , saying that ‘’Well, our financial institutions, our banks and investments banks are very strong."

During the rest of the Spring and early Summer, anytime Paulson got within 200' of a microphone, he was bragging about the solidness of the American economy, until the implosion of Fannie Mae and Freddie Mac, both of which needed a massive injection of taxpayer money to prevent a complete collapse.

Yet, Pauslon, on July 11, was bragging to one and all that Fannie and Freddie were adequately capitalized

And that they WON'T need a government bailout

Yet a mere three days later, we were informed that the government WAS going to bail out Fannie and Freddie.

While that turd kept swirling around the toilet bowl, news started leaking out about a whole slew of Wall Street financial institutions in trouble, like AIG.

Yet, here's what Hank was saying, on September 15:

Treasury Secretary Henry Paulson has said the U.S. financial system is sound and resilient despite the recent economic downturn.

On September 16, the government stepped in and infused a Whopping 85 BILLION of YOUR money into AIG.

Now, King Henry is telling us to hand over the keys to the US Treasury Department to the same man who's been running interference for his Wall Street buddies since the feces began hitting the rotary oscillator.

Hank's old firm, Goldman Sachs, will benefit from our largesse, by being able to slop up some of that gravy Paulson has been shoveling out to those Wall Street hucksters

Goldman Sachs Group Inc. and Morgan Stanley may be among the biggest beneficiaries of the $700 billion U.S. plan to buy assets from financial companies while many banks see limited aid, according to Bank of America Corporation.

These aren't the actions of a buffoon, but a series of shrewd, calculated moves to shear the American public of untold TRILLIONS.

Guess that makes Hank a world-class CON MAN.

And what do con men do to gain your confidence?

I'll leave you with this bit of trivia:

Wall Street Plans $38 Billion of Bonuses as Shareholders Lose

Nov. 19, 2007 (Bloomberg) -- Shareholders in the securities industry are having their worst year since 2002, losing $74 billion of their equity.

That won't prevent Wall Street from paying record bonuses, totaling almost $38 billion.

That money, split among about 186,000 workers at Goldman Sachs Group Inc., Morgan Stanley, Merrill Lynch & Co., Lehman Brothers Holdings Inc. and Bear Stearns Cos., equates to an average of $201,500 per person, according to data compiled by Bloomberg. The five biggest U.S. securities firms paid $36 billion to employees last year.


It's a Wall Street bonus bonanza 24 BILLION in 2006 bonuses

Updated 12/20/2006
NEW YORK — Executives at Wall Street's top financial firms will probably remember this holiday season with particular fondness, as soaring profits cascade down to traders and bankers in the form of multimillion-dollar bonuses.

This year, four of the top five brokerage houses have posted record earnings, paced by Goldman Sachs, where income jumped 68% over 2005.

Even Morgan Stanley, where an ugly internal putsch resulted in the ouster of an autocratic CEO last year, bounced back smartly in 2006, announcing a 51% rise in earnings Tuesday.

Bear Stearns and Lehman Bros. also set records for revenue and earnings.

As a reward for Goldman's blockbuster performance, CEO Lloyd Blankfein received a staggering bonus of $53.4 million this week, the largest ever granted to a Wall Street CEO.

Joining Blankfein in the bonus stratosphere is Morgan Stanley CEO John Mack, who got $40.2 million last week.

Lehman CEO Richard Fuld got a seemingly modest $10.9 million bonus earlier this month. But don't shed any tears for him: Fuld also received a 10-year stock payout worth $186 million.

All told, this year's bonus pool for Wall Street executives hit $23.9 billion, the New York State Comptroller's office estimates. That's a 17% jump from last year's bonus pool of $20.5 billion, and it works out to an average bonus of $137,580 for every person employed in the financial services industry.

And yet, some observers doubt that the big firms can keep breaking one earnings record after another.

"There's a disconnect between the economy and the financial system," says Richard Bove, who tracks the financial services industry for Punk Ziegel. "Income has to be generated somewhere. The financial sector has taken on a life of its own not connected to what's going on in the economy and, ultimately, that has to be addressed."


Greg Bacon | Tue, 2008-09-23 21:29
Source: http://www.wakeupfromyourslumber.com/node/8253

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