I am not seeking a Treasury Secretary that is loyal to the president, any president.
I am seeking someone who speaks the truth, doesn’t spin the facts, and informs the citizens of exactly what is being proposed and how it is going to be overseen.
One thing that has started to evolve in my understanding is that this crisis is more about declining home values than mortgage defaults. Mortgage defaults are somewhere in the 5% and $250B range. There are many times more the losses in values of mortgage backed securities that are not yet in default. So, we know what has unraveled so far. What goes next as the bubble deflates?
With those questions in mind, Paulson made a few billion during the creation of this bubble as CEO of Goldman Sachs. Where is that money now? What conflicts of interest might he be serving? Any coincidence that Buffet ponied up $5B in Goldman Sachs? What might he know about what Paulson plans to do with the $700B? With only four months left to serve, will Paulson blow the whole wad in that time?
This stinks like last weeks fish to me.