Whose Sky is Falling In?

OR, Should the Panic of Henry Paulson be the Panic of the Nation?

Something strange is going on when, a few short days after nationalizing Fannie and Freddie, and bailing out AIG, Henry Paulson found it necessary to tell the nations' political leaders that our entire financial and economic system is about to collapse.

But a quick look at what happened that very day to Goldman Sacks stock prices clears up the mystery. As hedge funds discovered that the much vaunted Goldman was also hiding nearly worthless derivatives and packaged mortgages, they drove the price of GS down from 145 to 103. The same day the administration banned selling short financial shares like GS, and Henry took his case to the assembled US leaders that the sky is falling in, and only giving him a trillion dollars to save his old firm and others like it can prevent a national collapse.

At least one Wall Street Journal writer has pointed out that this is a huge SCAM. Henry Paulson was running Goldman when they dug themselves in the same hole as Lehman Brothers. The near or actual collapse of Goldman would be a catastrophic embarrassment to Paulson and the President, and a colossal erosion of confidence in the ability of this administration to deal effectively with our real economic challenges. It is not a huge threat to this nation's economy.

The crisis is really one for Paulson, GS and the other reckless investment banks. There is no dire crisis in our other markets or the economy, other than for mortgage holders who can't meet their payments (and for whom no help whatsoever is being offered by Paulson). Walmart, Home Depot and my supermarket are crowded; our 6.1% unemployment rate is hardly catastrophic; and the stock market fell more in all three crises since 1930, than it has this year.

Folks, we are being asked to pony up a trillion dollars in more national debt, for Paulson to bail his own firm and those of his cronies. Not to save the nation, but to save them from further harm and ridicule. If we do this, Goldman's young employees will still get their $500,000 to $2,000,000 bonuses this Christmas; but GM and Ford will never be given a nickel to save an auto workers job that is threatened right now.

And we, the taxpayers, will be saddling ourselves and our grandchildren with a national debt that will reduce this country to a second rate power and lead to a fiscal disaster in record time. If we are so reckless with our nation's money and credit, why would the nations of the world even continue to use the dollar for most international transactions?

Fortunately, many leading Republicans and financial analysts see the "Paulson Gambit" for what it is. One only hopes that a spineless Democratic leadership will not be stampeded into agreement by Paulson's rant. If he is so brilliant as to predict a looming disaster, where has he been all year through this growing crisis?

Please correct me if I am missing something here; or use this to help others consider what is really going on in America this week.

Whose Sky is Falling In?

OR, Should the Panic of Henry Paulson be the Panic of the Nation?

Something strange is going on when, a few short days after nationalizing Fannie and Freddie, and bailing out AIG, Henry Paulson found it necessary to tell the nations' political leaders that our entire financial and economic system is about to collapse.

But a quick look at what happened that very day to Goldman Sacks stock prices clears up the mystery. As hedge funds discovered that the much vaunted Goldman was also hiding nearly worthless derivatives and packaged mortgages, they drove the price of GS down from 145 to 103. The same day the administration banned selling short financial shares like GS, and Henry took his case to the assembled US leaders that the sky is falling in, and only giving him a trillion dollars to save his old firm and others like it can prevent a national collapse.

At least one Wall Street Journal writer has pointed out that this is a huge SCAM. Henry Paulson was running Goldman when they dug themselves in the same hole as Lehman Brothers. The near or actual collapse of Goldman would be a catastrophic embarrassment to Paulson and the President, and a colossal erosion of confidence in the ability of this administration to deal effectively with our real economic challenges. It is not a huge threat to this nation's economy.

The crisis is really one for Paulson, GS and the other reckless investment banks. There is no dire crisis in our other markets or the economy, other than for mortgage holders who can't meet their payments (and for whom no help whatsoever is being offered by Paulson). Walmart, Home Depot and my supermarket are crowded; our 6.1% unemployment rate is hardly catastrophic; and the stock market fell more in all three crises since 1930, than it has this year.

Folks, we are being asked to pony up a trillion dollars in more national debt, for Paulson to bail his own firm and those of his cronies. Not to save the nation, but to save them from further harm and ridicule. If we do this, Goldman's young employees will still get their $500,000 to $2,000,000 bonuses this Christmas; but GM and Ford will never be given a nickel to save an auto workers job that is threatened right now.

And we, the taxpayers, will be saddling ourselves and our grandchildren with a national debt that will reduce this country to a second rate power and lead to a fiscal disaster in record time. If we are so reckless with our nation's money and credit, why would the nations of the world even continue to use the dollar for most international transactions?

Fortunately, many leading Republicans and financial analysts see the "Paulson Gambit" for what it is. One only hopes that a spineless Democratic leadership will not be stampeded into agreement by Paulson's rant. If he is so brilliant as to predict a looming disaster, where has he been all year through this growing crisis?

Please correct me if I am missing something here; or use this to help others consider what is really going on in America this week.