One of Barack Obama’s first great acts of leadership should be TO NOT HOLD OVER HENRY PAULSON as Treasury Secretary. In fact, I believe that George W. should “ask” Henry Paulson to immediately “step aside,” and then George W. should directly appoint whomever Barack Obama chooses as Paulson’s replacement.
In any case, Paulson today FINALLY smelled the coffer and realized that all of the TOXIC DEBT he was planning to buy from the “troubled” financial institutions was PURE SEWAGE and not worth a damn. Instead, he is proceeding with his SECOND WORST IDEA, which is to pump money into the balance sheets of those same “troubled” institutions that hold the junk debt. At the very least, I hope that Paulson will continue to trade our tax-money for equity in those institutions, and I hope that the Obama administration will have the fortitude to LIQUIDATE those “troubled” financial institutions if they don’t soon prove they can again become productive and responsible.
It is beyond logic why Paulson and Bernanke did not choose to take the bailout money and loan it to institutions that WERE NOT “troubled,” contingent on them taking total control of ALL of the assets of the “troubled” institutions. That way the U.S. Government would be rewarding GOOD BEHAVIOR, and they would be letting the “troubled” institutions “fail with grace” by being acquired by institutions with responsible management.
Quoting Henry Paulson “And to adequately reform our system, we must make sure we fully understand the nature of the problem which will not be possible until we are confident it is behind us." The translation is that our Treasury Secretary does not have a clue.