Why Paulson is anything else but qualified to deal with this disaster

Some facts about Mr Paulson from Wikipedia:

Excerpt

Paulson was Staff Assistant to the Assistant Secretary of Defense at The Pentagon from 1970 to 1972.[7] He then worked for the administration of U.S. President Richard Nixon, serving as assistant to John Ehrlichman from 1972 to 1973.

He joined Goldman Sachs in 1974, working in the firm’s Chicago office. He became a partner in 1982. From 1983 until 1988, Paulson led the Investment Banking group for the Midwest Region, and became managing partner of the Chicago office in 1988. From 1990 to November 1994, he was co-head of Investment Banking, then, Chief Operating Officer from December 1994 to June 1998;[8] eventually succeeding Jon Corzine (now Governor of New Jersey) as its chief executive. His compensation package, according to reports, was US$37 million in 2005, and US$16.4 million projected for 2006.[9] His net worth has been estimated at over US$700 million.

He was an assistant to John Ehrlichman, who was involved directely into Watergate and Mr. Paulson joined Goldman months before the scandal errupted (that I have from the German Wikpedia but is not mentioned in the English version) for those who understand German an excerpt:

Hier wirkte er von 1972 bis 1973 als Assistent von John Ehrlichman, der später an der Watergate-Affäre beteiligt war. Paulson wechselte im Jahre 1974 (noch vor Watergate) in eine Anstellung bei Goldman Sachs in Chicago

That’s an obsure coincidence, since the events of Watergate happened between 1969 and 74. I do not say that he was involved – do not get me wrong – but he was close.

For a moment, we jump to a different person Mr. Fisher, an East German double spy who was brought out of Eastern Germany by the CIA in the late 70’s ended up as a Star-salesman at Goldman.

Back to Mr. Paulson, he was CEO until 2006 for Goldman and was a crucial part of the build-up of this mortgage disaster. The same person who was a crucial player to build up this disaster has obviously a huge conflict of interest to go against them.

The next point is that Goldman research was the first to produce research warning that a severe problem in the mortgage market was due and, therefore, took hedge positions accordingly on their exposure, consequently having fewer losses than their peers. Hence, Mr. Paulson had a warning and axcess to the intelligence of the things to come but did not act accordingly in foresight. They always have done the last second step so far, which basically worsens the overall situation.

By all means, he has an obvious conflict of interest and a proven track record of not acting in smart forsight.

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~ by behindthematrix on September 25, 2008.

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