Something has been nagging me since Friday. Why did GWB appoint a lifetime Democrat like Henry Paulson to be Treasury Secretary when he knew that a mortgage financial crisis was likely? It doesn’t take a genius to figure out that Paulson would take the opportunity to jump right in bed with Frank, Dodd, Reid and Peloser with the US taxpayer getting screwed as a result.
George Bush has one great personal flaw that has cost him dearly over time: he believes himself to be a good judge of character, when in fact, he is a very poor one. Vladimir Putin. Harriet Miers. Alberto Gonzales. Henry Paulson.
See a pattern here?
Reaction to his nomination from The Wall Street Journal:
Mr. Paulson brings strong credentials on that score, as Goldman Sachs has grown far beyond its Wall Street base to become a truly global player in capital markets. He either knows, or knows people who know, the brave new world of hedge funds, private equity and credit derivatives. He also understands the rising importance of China to the U.S. economy, and thus the dangers of Congressional protectionism. And he realizes that investors now scour the world for the best returns, so the U.S. must have tax and regulatory policies that invite global capital.