Paulson Drops The Ball Again

Since Hank Paulson came out and said he no longer planned to buy assets off the balance sheets of troubled financials, the S&P 500 Financial sector is down 22%.  Is there any wonder?  Why would Mr. Paulson ever in his right mind come out and say that he wasn't buying any assets when he still has the ammo to do so?  It makes no sense at all to make a statement like that when the option is still on the table unless you want investors to panic again.  What are the odds that Mr. Paulson has to come out and say that buying troubled assets is actually not off the table?  President-elect Obama needs to name a new Treasury Secretary, and fast.

Comments

[BenE]

Nasdaq down more than 50% since last year's high. 50%!

[Bob]

Yes, it was a stupid move. Prop them and the market up, and then pull the rug out.

[joe investor]

What are you guys talking about?!

There're a bunch of investors bought the garbages at a discount in the hope of flipping them to the Treasury for quick profit. Remember Treasury's money ultimately come from taxpayers like you and me. So Mr. Paulson did the right thing here.

The real outrage going on right now is that the incoming president want to pay off his union backers, but is hell bent on making the outgoing president sign the check - while the Rome is burning!!

[Mike M]

I have made comments here and elsewhere that Hank Paulson is corrupt. He simply can not be this inept.

[Tom Chechatka]

My sense of the matter is the Treasury Secretary, with the decision not to use the TARP for purchasing worthless mortgage-backed securities, is -- absent any move to suspend mark to market accounting -- fomenting chaos in the financial industry, and as a consequence creating conditions conducive to further consolidation of financial power than has been achieved over the past three decades.

Let's face facts. The only viable alternative to the crisis we face is a massive bankruptcy reorganization of the financial system. The only way this will get done is with relentless pressure placed on the U.S. Congress. Given 100-1 opposition voiced against the bailout bill, the potential for such pressure is not some abstract pipe dream. It is only a matter of time...

[terra210]

I agree. Paulson has ethical issues. I think the Big 3 should go through bankruptcy, but, there needs to be something else in place for the 800K+ workers, and those now living on Big 3 Pensions. It seems reasonable that someone like Buffet or Gates, or any of our other 1000 Billionaires, (in the US alone), could purchase the Big 3, and re-tool them to build better transportation, from cars to trains and new rail systems. Paulson saying he will now do nothing, is no surprise, but it shows where his real ethics are founded; in lining his own pockets and those of his friends with taxpayer money. He should be held accountable in a court of law, for his actions, or lack thereof.

[Joe C]

>>>name a new Treasury Secretary, and fast.

If we want to start fixing our economics for the long haul, then Ron Paul should be Secretary of Treasury.The fact is, many/most of us don't want the lifestyle changes that will be required to fix the economic mess.