Moon Kil Woong

Paulson: The Exit Interview

Paulson was a genius. Machavelli could not have been more proud of him. Having the EU behind the curve only helped the US consolidate it's temporary export gains for a few months before Europe realized the guys with the strong currencies loose. Why help everyone keep up with you.

he used the same strategy with derivatives. While Goldman sold bad packaged mortages and helped AIG write derivitives on them he quietly had Goldman buy up tons of them so he would profit off of the collapse of the mortgage crisis and the ensuing mahem. Little did he know his patsy AIG would mess up so bad it threatened to unravel all the bond deals due to the denuding of the derivatives that backed them.

So he used the taxpayers to bail out the dupe AIG. And he bailed out Bear Stearns to keep the derivitive market as hidden to the public as he could (derivitives are unregulated, unreported, and off balance sheet in most cases thanks to Base I accounting).

Unfortunate for Lehman the derivitives fiasco was already coming to light and they weren't on the short end of the stick with Goldman so they got ruined. What a great tit for tat against old enemies you have when you get to run a government agency.

So in summation, Paulson, who was given the greatest leeway in spending the greatest amount of money with no strings attached in US history dumped all $350 billion of it to AIG and his banking friends after lying about using it to buy bad home loans. And then he says, I was powerless. And you expect me to believe that. Really? Please, play the innocent humpty dumpty saga to someone else. I don't buy it. Paulson is about as innocent as Madoff. It's just that he didn't get a Tarp to hide his companies misdeeds under.

Am I demonizing him too much? Nawww... If you want to see the root cause of the financial storm have the SEC investigate Goldman Sacs. Will they do it? After we know how they handle the Bernie Madoffs of the world. Not a chance.