Henry Paulson, Secretary of the Treasury, has proposed a very scary legislative action that he says has to be passed NOW or our financial markets will crash. It says that he gets $700 Billion to do whatever he feels is needed to fix the huge financial corporations that are hurting so badly because of loans they made in complicated financial instruments that no one knows how to value, but which are now worth a great deal less than they claimed they were.
The bailout proposal also says that paulson will have no oversight and can't be taken to court for anything he does. Does that pass the smell test? Paulson threw this thing out on the table and told Congress to sign it or else. Now look what Bloomberg Financial news says about the bailout as proposed:
By Jody Shenn
Sept. 22 (Bloomberg) -- 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 Corp.
Goldman Sachs is in trouble because of a financial instrument called a "Credit default instrument" that it issued from 2005 through 2007. Other financial institutions followed suit and next thing you know the big boys, think "too big to fail", were slinging debt around like hash. Now the hard assets behind those bundled instruments, think "your house", have lost value and the little folks who were sold home mortgage swampland may lose their homes and the financial guys who came up with and tafficed in this financial crack cocaine, may lose a bunch of their own money , not to mention get in serious trouble with Russia, China, Saudi Arabia, etc. because those countries have been backing just about everything in this country.
So Henry Paulson tries to ram a fishy bailoout proposal imbedded with his own pardon down the throats of America's taxpayers and the Congress that represents them.
"Don't read it...Just sign it!" he says.
So this version of the capital crisis started with Goldman Sachs in 2005. Guess who was CEO of Goldman Sachs in 2005 through part of 2006, while this was going on?
And guess who received compensation for 2005 in the order of $27 Million dollars?
His friends call him, "Hank".