Monday, September 8, 2008

Henry Paulson Doesn't Have All the Answers




Here's Treasury Secretary Henry Paulson on MSNBC - Being asked, but not having the answers to, the "hard questions," such as "What will this cost the taxpayers?" Not even a vague guesstimate.

And as for timing? Claims that the takeover coming after the Republican National Convention is coincidental, and that the takeover coming as far away as possible from the election is just...coincidence.

3 comments:

Anonymous said...

Is it just me, or does this guy reek insincerity? I don't believe a word he says.

Anonymous said...

do you expect him to have all the answers?

what other viable alternative(s) did the Feds have? F&F were/are insolvent. Let them go bankrupt? 70% of the mortgage market would cease to exist.

Real C'ville - The Bubble Blog said...

Anonymous,

We expect Henry Paulson to have a reasonable estimate of how much this is going to cost taxpayers.

Make no mistake that he *does* have an estimate, based on financial entities that are actually "telling the truth" about their balance sheets and book of business--those who are accurately reporting their losses.

But the rub is that *many* banks aren't accurately reporting.

Still, Paulson should be offering a figure. But he won't, because it would be too shocking.

Fan and Fred claim 5.3 TRILLION in "assets"--the mortgages they're backing.

Those ain't all "assets," sadly.

And if you've been reading this blog, you know that two weeks before Labor Day we were having a daily "Countdown to Bailout of Giant Mortgage Losers Fan & Fred."

It was fully expected. You're right that there's no alternative. Not only would failures have fully collapsed the American Economy, failures would have taken out some other countries, too.

Sadly, again, we're not even engaging in hyperbole.