The Paulson Put(sch)
Questions for the new CEO of US Government Inc.
[Last Wednesday, Hank Paulson was installed as CEO of US Government Incorporated, replacing the now defunct United States of America].
Charles Krauthammer wrapped up an astounding week in American history with a hosanna to Ben Bernanke and Hank Paulson. The best possible team to have on your side in a financial crisis bigger than any since the 1930s, says he. Bernanke, because he is an economic historian specializing in the Great Depression. And Paulson because he knows everyone in the banking industry and is the perfect person for arm-twisting and deal-making. Financiers aren’t all bad, sniffs Krauthammer. There were all those greedy realtors and home-owners too.
Yes, Charles, we do see that greed is a many-splendored thing, visiting the poor and rich alike. But on a mundane level, the yearning of the cleaning lady who gets herself in over her head with a home loan she can’t pay is not the same sort of public hazard as the cosmic larceny of financiers who’ve skipped out with hundreds of millions from companies they’ve skinned like pole cats…
Read the rest of my latest piece on Paulson’s power grab at Lew Rockwell. You can find other articles of mine on the old archive of Dissident Voice. I will (eventually) get my pieces onto this site in a more approachable way, but being bloggitudinally challenged, that may take a while.
And the real reason the country is in trouble:
Today’s Top Searches
1. Ivanka Trump
2. Brangelina
3. Lindsay Lohan
4. Dancing With the Stars
5. Clay Aiken
6. Ben and Jerry’s…
7. Knight Rider
8. Lego Batman Video…
9. Dick Lynch
10. John McCain
It’s all circuses…
Apparently, we don’t even care about bread anymore.
putsching the envelope?
From: Joe Brennan
Sent: Thu 9/25/08 4:22 PM
To: lrajiva@hotmail.com (lrajiva@hotmail.com)
Dear Ms. Rajiva . . .
Let me say up front that probably on social issues we would be at loggerheads, but this is the best analysis of this crime that I’ve read from any side of the political spectrum, just absolutely chocked full of the kind of luminous detail that turns ignorant people into informed people in just the time it takes to read it. I’m sending it to everyone I know.
brava!
joe brennan
Lila,
This was such a pleasure to read. I enjoyed this article for its honesty and direct approach to truth. I would add a quip-
“Truth-truth is what you get others to believe…” Tommy Smothers
And reiterate this from a comment above-
“Political language…is designed to make lies sound truthful and murder respectable, and to give an appearance of solidity to pure wind.” — George Orwell
For those in Vermont, Charlotte Dennett just may give is the “prosecution of George Bush for murder” as described in Vincent Bugliosi’s book. You can read more on my blog at:
http://bdgroupllc.blogspot.com/2008/09/vermont-is-beautiful-this-time-of-year.html
Perhaps the fear of crime should not be pointed at Main Street any longer, as this costs our society a lot less that the crimes of Wall Street. It is time to prosecute white collar as harshly as the laws prosecute any black man in America! Then we will have equality in Amerika!
Doug Boggs
Bay Area, CA
Comment from a reader :
Date: Thu, 25 Sep 2008 02:16:17 -0430
Subject: The Paulson Putsch
Dear Lila,
I liked your article very much. I wonder if you would approve that
have made up the following title for Mr Paulson:
Hanky Panky the first, King of America, Crown Prince of financial
planet Earth, Lord Protector of Goldman Sachs, Great abettor of
Banksters in distress.
Keep up the good work. We need you.
Best regards,
Luis Baez-Duarte
Sent: Thu 9/25/08 2:10 PM
To:
Masterful! This is the best summation of the causes of the debacle that I’ve seen, touching on many points I’ve suspected for years and many that are brand new to me. It’s especially funny that you mentioned lynch mobs; the frenchman in me has been thinking of Mme. Guillotine for awhile now, but you are right, too many of the guilty were merely gullible. Still, I would like to have Rubin and Paulson listen to the whisper of the axe, but we know how that turned out last time…
Good job! Thank you.
Bruce Grand Pre
This morning’s Open Letter to Hank the Skank at LRC?
From: Thomas Luongo
Sent: Thu 9/25/08 1:04 PM
Ms. Rajiva,
That was one of the best-written and compelling accounts of the depth of depravity that exists in our banking system that I’ve read, and I’ve been reading LRC since it went live. Thank you for putting all of that into one easily digestible article.
The other day I was okay with the idea that they’d lost complete control of this and it would end with an orgiastic bang. But, today, I’m almost convinced that Paulson et. al. will actually pull this nationalization off, consolidate complete control over the banking system and destroy even more capital through time.
Be well and protect yourself.
Ta,
Tom Luongo
“Political language…is designed to make lies sound truthful and murder respectable, and to give an appearance of solidity to pure wind.” — George Orwell
From: Michael Rivezzo
Sent: Thu 9/25/08 1:02 PM
To:
Thank you
For your brilliance and what seems to be endless effort to gather and research to get to the bottom of things. I have read a few of your articles on Lew and you are among some of the authors who has helped to open my eyes.
Michael Rivezzo
Paulsen Putsch?
Caryl Johnston
Sent: Thu 9/25/08 12:02 PM
To:
Dear Lila – Bravo and bravo to your piece on Lew Rockwell.com – acerbic, witty
and right to the point. Brilliant!
Best regards,
Caryl Johnston
Goldman/Paulson Article?
From: stuart bevin
Sent: Thu 9/25/08 11:43 AM
To:
Your recent article, in Lew Rockwell, on Paulson and his piracy was excellent!
This type of investigative journalism is so sorely needed these days. Keep it up! Truth, in the end, will win.
Sincerely
Stuart Bevin
The Paulson Put(sch)?
From: Peterson, Maynard (Maynard_Peterson@intuit.com)
Sent: Thu 9/25/08 3:47 PM
To: lrajiva@hotmail.com
Very nice article, Lila, but do you still actually believe, seven years later, that Al Qaeda (which is a creation of the CIA, by the way), bin Laden, or anybody else, had anything to do with 9/11? If you want to tell me that Arabs boarded those planes, then why is there no video of them doing so? 9/11 was a hoax, just like the moon landings, and just like this financial takeover.
If the world is actually coming to an end, why is there no talk at all out of anybody in Congress, including the phony Ron Paul, about charging the people who ran these companies into the ground with crimes of the highest magnitude? Why is a guy like Paulson, who ran the company that helped Enron set up its phony accounting scheme, even mentioned (much less actually involved) as a guy who should be allowed into anything resembling an investigation or solution, when he is the product of an industry that greatly rewards greed and deceit? Why is this guy allowed to palm off legislation on Congress that basically says that he can do anything he likes, with no Congressional oversight at all, when this shitheel hasn’t been ELECTED to ANYTHING, including dog catcher?
This whole thing stinks so bad a skunk would hold its nose. This is fraud on an unbelievable level. Period. It’s the same tactic they used to get the poltroons in Congress to pass the PATRIOT Act. “We don’t have time to talk. We don’t have time to debate. We don’t even have time for you to read it. Just sign it into law, or we’re all going to die.”
Right.
Encore ! Fantastic article!?
FSent: Thu 9/25/08 4:33 PM
This masterpiece was full of passionate effort, and it shows! Kudos to you! Great Job!
Devra Ryker
Bakersfield, CA
The Paulson put(sch)?
From: Grammas, August
Sent: Thu 9/25/08 4:52 PM
To:
Just blooming excellent!
Q24: “…. People who were happy to flip houses,
lie on their loan applications … will rush
to the front of the outrage line.”
I could not have put it any better myself,
thanks.
August Grammas
If you pick up a starving dog and make him prosperous,
he will not bite you; that is the principle difference bet-
ween a dog and a man.
Sam Clemens
The Paulson Put…?
From: Joyce
Sent: Thu 9/25/08 4:46 PM
Reply-to:
To: lrajiva@hotmail.com
BRAVO!!!!! From your words to the FBI’s ears – who hopefully will really investigate and not just pretend.
Joyce
25 questions for Paulson?
Dagny
Sent: Thu 9/25/08 7:41 PM
To:
Lila, you’re brilliant.
I hope I get to cross paths with you some day.
Stay safe.
There are too many people who can’t stand the truth and truthtellers.
Dagny (formerly of Dagny’s Freedom Festivals, California)
From: Rob C (
Sent: Thu 9/25/08 8:26 PM
To:
Very good. You blew them out of the water.
So what`s going to happen over there? Riots in the streets? Lynch mobs, rope and lamp posts!
They are evil, evil mutants.
Be safe,
Rob
Amen?
From: Donna & Ray Allen
Sent: Fri 9/26/08 4:38 AM
To:
This is one of the best articles that I have read. Sorry to say that I don’t know one individual that would take the time to read this much less understand most of it.
The American people have become a flock of followers. The individual needs to take responsibility for their negative spending habits and greed knowing they were spending beyond their means. The economy went up unrealistically on free money during the last years of the Clinton administration and deregulation started as well only to be expanded on during the Bush years.
Yes, greed has put us in the position that we are in and perhaps the chickens have come home to roost.
I don’t think that we should entrust any recovery to the individuals that were instrumental in putting us in the situation that we are in. Jail time in my opinion is more justifiable.
Side note- as an exclusive buyer’s broker for 14 years now I have watched the real estate market. About four years ago I started telling my investor clients not to buy. Even in this small town in western North Carolina the properties were over priced with sellers thinking they had found gold in the mountains here. The market has finally sort it’s proper level for historic appreciation rates. If things look too good to be true they usually are and that was the case for real estate. Additionally many many people that were granted loans knew they never could afford them in the past so why would they think all of a sudden their circumstances had changed. The old percentages of debt and expense worked for years. Blame some Realtors but some of us have always protected our buyers and I am proud to say that I am one.
Thank you for your very well written informative piece.
Donna Lee Allen
mario leli
Sent: Thu 9/25/08 11:12 PM
To: l
The paulson putsch: A beautiful article
Yuri Dia Konov (eastarchangel@gmail.com)
Sent: Fri 9/26/08 6:30 AM
To:
BRILLIANT AND IRREFUTABLE! THE THROES OF ECONOMIC DEATH AND THOSE
RESPONSIBLE, DELINEATED WITH A PEN GUIDED BY A VERY SHARP MIND.
THANK YOU
lewrockwell article?
From: will
Sent: Fri 9/26/08 2:30 AM
To:
Wow, Ms. Rajiva,
The Paulson Putsch
Questions for the new CEO of US Government Inc.
Awesome, awesome work! Thank you!
Blessing to you,
wpc
Brilliant Article?
From: LHalvor
Sent: Fri 9/26/08 12:50 AM
To:
You have incredible insight. Spot on. Larry Halvorson
Tom Dauphin
Sent: Fri 9/26/08 12:51 AM
To:
Ms. Rajiva:
I just finished reading your article on Lewrockwell – “The Paulson Putsch”…
It was one of the most striking and stirring articles I’ve read so far over this debacle called the bailout… As you say – Natural law will most assuredly take its course and make the necessary corrections to the artificialities and absurdities the country is now bearing witness to. Unfortunately, the majority of the rank and file American public is totally oblivious to what is happening, as they’re probably too busy watching Dancing with the Stars or American Idol…
I intend to forward your article to as many peoples as I can….
Thanks again and have a great day…
Sincerely,
Tom Dauphin
Glendale, AZ
alan jacquemotte
Sent: Fri 9/26/08 1:21 AM
To:
If anything, they were brought down by the financial transparency required by new mark-to-market accounting rules. That brought to the attention of investors the weakness of the firms balance sheets, weakness that in previous times would remain hidden until the depressed value of the assets had time to perhaps recover. Holding speculative assets like that is what investment banks are set up to do and any investors in them should have realized that. they just didn`t want to have to be reminded of it and when they were (by the new accounting rules) they found reasons to sell. The short-sellers were just trying to profit by speculating that the stock price of those firms would be going lower. And they were right. So shouldn`t they make a little profit for being right? Without the new accounting rules, Bear and Lehman (for better or worse) would still be around today. alan
From: Peter Tuffley
Sent: Fri 9/26/08 2:20 AM
To: lrajiva@hotmail.com
Dear Ms Rajiva
Congratulations on one of the greatest pieces of commentary I have so
far read re the current
débâcle. A brilliant stylish piece of writing too.
FWIW you have won a new fan in…
Good to see you making some fine hay out this significant moment of schadenfreude. Hope your hands don’t get chapped from all that rubbing with glee.
This is merely stage one in the remaking of capitalism. Regulation is a necessary and civilized thing, as most other capitalist countries can attest. The absence of regulation here is what has toppled the American economy.
So the pendulum is now swinging back towards the collective. It’s 1929 all over again. We will find our new FDR eventually and a New Deal 2.0.
None of this is too surprising. I find the free market solutions to “let them fail” recommended by hard core GOPers and professional traders like Jim Rogers are not living in the real world. Thank God they will not prevail. The average person has a lot to lose if it all goes up in flames. Of course, the bailout will not stop the inevitable shrinkage of wealth, it may just delay it or make the process a little more orderly. Even that may be worth 700B.
All dollar holders want a deal (with our selfish interests) to avoid panic flight out of currencies.]
There is no win here either way for most people. For me it would be financially better if a deal went through.
But on principle, I am against it. The free market is not the problem, ( it exists only in theory anyway most of the time); the problem is crony capitalism, which is turning into outright fascism or syndicalism, if you prefer.
If you read the details of regulation, the story here is Paulson and GS making a power grab.
I don’t believe anyone is happy here AT ALL about the choices either way.
And I can assure you American (non DC, non media, non Wall Street opinion) is running 10-1 AGAINST (correction 100:1 or 300:1 according to reports)
I have been watching Neil Cavuto and he is voicing what everyone feels here.
This is, pure and simple, the ordinary people and small businesses versus the bankers.
The people are going to be hurt either way..
I am writing what I think is principled and also practically the right thing to do.
If I were gleeful, I would not be wasting my time researching and writing but would be shorting.
It’s time for all good people to come to the aid of the Titanic…
Sorry, if I sound sharp….
PS
I said the issue on regulation is not black and white.
But I am not sure you understand what’s happening.
Centralization under a securities-cum-regulatory-insurance czar is NOTHING but quasi if not full fledged fascism – that is a backward move.
Scaring people into it is not necessary.
By the way, this is a global – not an American problem.
Europe is no better and they are regulated!
Fortis is going down in Belgium – which just shows you.
I’ll take Jim Rogers over any of the people in DC right now.
He’s been on the money
By the way – correction:
Public opinion is running 100:1
according to this post by Karl Denninger:
http://market-ticker.denninger.net/authors/2-Karl-Denninger
Dont usually post comments but thought I might on this occasion. Nice site.