Ron Rosenbaum, Writer

September 29, 2008

Fire (Or Impeach) Paulson and His Stooges!

Filed under: Uncategorized — ronrosenbaumwriter @ 2:02 pm

Now that the first vote on the bailout has shot it down (thanks to the urging of Mike and me–see post below–actually thanks to the rare working of representative government by those on both sides of the aisle who rejected it), it’s time for some accounting. First of all, Treasure Secretary Paulson should have been fired when he sent Congress a flagrantly unconstitutional bill that would make him tin-pot dictator with no judicial review for his actions. As if the constitution were toilet paper.

Then he should have been fired yesterday when it was revealed (on the front page of The Times) that he brought a fellow stooge from his old firm, Goldman, Sachs–the chief executive!–into an emergency meeting about the fate of A.I.G.–a fate in which Goldman had huge undisclosed (to the public) stake–and one from which all other corporate finance stooges were excluded.

This is breathtaking contempt for the rule of law (the no judicial review provision) and then an astonishing, shameless naked display of crony capitalism corruption. Where were the law school profs to protest no judicial review? An astonishing dereliction of civic duty.

Paulson should be kicked out of his office forthwith and all his papers and e-files locked down so the Feds can see the full extent of his corruption. And anyone else who signed off on that original blatantly unconstitutional bill should be identified and fired as well. It was the well-earned bad faith created by these acts that were the final nails in the coffin of this attempted “shock doctrine” coup. (The reference by the way is to Naomi Klein’s book of that title (The Shock Doctrine) which I once thought was a disturbing account of the kind of things plutocrats got away with only in banana reublics. Paulson tried to turn us into one.

Yes I know both parties and both campaigns are riddled with corporate stooges who are complicit in this crisis. So purge them! Now! Whichever campaign is the first to insitute a fire-all-investment-banker policy can win the election. Yes it’s too late but it will have symbolic value.

But I’m sick of hearing it blamed on would-be homeowners. No, it’s the fault of those who spun derivatives out of derivatives out of derivatives from the bad paper and turned the economy into a casino. It’s the culture of greed.

Once again: put Ralph Nader in charge of the clean up. If you’ve stilll got 700 billion kicking around (as aparently we did) then distribute it (proportionately) to the poor.



  1. “If you’ve stilll got 700 billion kicking around (as aparently we did) then distribute it (proportionately) to the poor.”

    This is typical socialist speak. What caused the sub-prime mess? Lending to people who couldn’t afford the loans. What caused lenders to throw money to anyone that asked? Far left radical community organizations like ACORN and a bunch of Dem sympathizers who aggressively sought to expand loans to low income groups using the CRA as a whip.

    From the New York Post:

    In the 1980s, groups such as the activists at ACORN began pushing charges of “redlining”-claims that banks discriminated against minorities in mortgage lending. In 1989, sympathetic members of Congress got the Home Mortgage Disclosure Act amended to force banks to collect racial data on mortgage applicants; this allowed various studies to be ginned up that seemed to validate the original accusation.

    Most significant of all, ACORN was the driving force behind a 1995 regulatory revision pushed through by the Clinton Administration that greatly expanded the CRA and laid the groundwork for the Fannie Mae, Freddie Mac borne financial crisis we now confront. BARACK OBAMA was the attorney representing ACORN in this effort. With this new authority, ACORN used its subsidiary, ACORN Housing, to promote subprime loans more aggressively. Even now, unbelievably — on the brink of national disaster — Democrats attempted to have ACORN benefit from bailout negotiations by having 20% of monies returning from the bail-out go to ACORN. That’s $140 Billion of tax payer’s money to a radical far left group.

    Obama has spent a large portion of his professional life working for ACORN or its subsidiaries, representing ACORN as a lawyer on some of its most critical issues, and training ACORN leaders. He is chin deep in this collapse and yet you Obamamaniacs are looking at his economics as the solution to our financial problems. Yes, the fat cats have been making out like bandits. Yes, members of both parties can share the blame, but if someone doesn’t stand up and stop Obama’s Marxist freight train, then it all won’t matter a damn. We’ll all be in the bread line.

    Comment by Syd B. — September 30, 2008 @ 7:10 am | Reply

  2. […] the entire story here […]

    Pingback by Pajamas Media » Fire (Or Impeach) Paulson and His Stooges! — September 30, 2008 @ 11:21 am | Reply

  3. Yes, I realized Paulson either knew beforehand and did nothing to prevent this meltdown; he was complicit or he was incompetent.

    Either way – not confidence inspiring.

    He needs to go – NOW.

    Comment by HRPKathy — September 30, 2008 @ 11:27 am | Reply

  4. I laughed aloud when I heard the original proposal. Paulson was asking for $700B with total control. 20 minutes after getting the money, he could have wired it all to a Swiss bank account, called the wife and said, “Pack your bags, honey, we’re moving to Switzerland!”

    It would have been the greatest heist in history! He’d’ve been Immortal! It would’ve been perfectly legal, too! He’d only have to leave the country to keep from being ripped apart by the angry mob carrying the torches!

    Congress almost bought this, too! It’s amateur hour in D.C.! Hilarious! Christ but these people are dumb!

    Comment by Marc Malone — September 30, 2008 @ 11:28 am | Reply

  5. Syd B — You need to do some reading. The ACORN-inspired bad lending practices contributed to the problem, but the derivatives that Ron references, and the SECs inability to define proper accounting standards that reflected the huge liabilities they created, are what brought down the banks and brokerage houses.

    Other than that, I agree with you, I’m not for giving away $700B to anyone. Ron had a pretty good post going, he is dead-on about firing Paulson, but then for some reason had to ruin it with the last two paragraphs.

    Comment by Steve — September 30, 2008 @ 11:37 am | Reply

  6. Dodd and Frank need to go also. Immediately.

    Comment by RE — September 30, 2008 @ 11:47 am | Reply

  7. This is the headline I’ve been wanting to read.

    Enough of this insanity.

    Something is really rotten with Paulson. And we need to know what it is. Best I can gather is he supported Dems up until 2004. That could be a starting point…

    Comment by Believer — September 30, 2008 @ 11:56 am | Reply

  8. […] Ron Rosenbaum apparently thinks so. Now that the first vote on the bailout has shot it down (thanks to the urging of Mike and me–see post below–actually thanks to the rare working of representative government by those on both sides of the aisle who rejected it), it’s time for some accounting. First of all, Treasure Secretary Paulson should have been fired when he sent Congress a flagrantly unconstitutional bill that would make him tin-pot dictator with no judicial review for his actions. As if the constitution were toilet paper. […]

    Pingback by Simply Conservative | Should Henry Paulson Get The Axe? — September 30, 2008 @ 11:59 am | Reply

  9. We don’t have any way to make Dodd and Frank go – but if we had an actual free press performing its function as the protector of the public, they’d already be toast.

    Comment by HRPKathy — September 30, 2008 @ 12:10 pm | Reply

  10. It shuold be reiterated that Paulson, and most employees of Goldman-Sachs, is a Liberal Democrat.

    Comment by Eric — September 30, 2008 @ 12:22 pm | Reply

  11. HRPKathy wrote…

    “””We don’t have any way to make Dodd and Frank go – but if we had an actual free press performing its function as the protector of the public, they’d already be toast.”””

    Not so fast, at least regarding the northeast United States. They knowingly put a druken killer (Kennedy) in office over and over. What is a 100 billion dollars of graft and corruption compared to voting for someone who should have done ten years for manslaughter? I think their are SOME constituancies that would vote for Satan himself. It’s a blue state thang’.

    Good article. I think the last line …

    “””Once again: put Ralph Nader in charge of the clean up. If you’ve stilll got 700 billion kicking around (as aparently we did) then distribute it (proportionately) to the poor.”””

    was meant in a ‘better than giving it to the rich suits’ kind of way. That’s how I took it. I heard on the radio (might not be accurate) that 700 billion works out to 75,000 per mortageg in the US. We don’t have it lying around anyways, and the author knows this. So, in the ‘well if we’re wishing I want a pony’ way, I agree.

    Comment by Kirk — September 30, 2008 @ 12:26 pm | Reply

  12. Actually, Ron…Paulson WILL be going and SOON!!

    Too bad we can’t say the same thing about Dodd, Frank, Reid, and Pelosi.

    Comment by Dave ll — September 30, 2008 @ 12:50 pm | Reply

  13. SYD B is exactly RIGHT. Frank and Dodd should be dragged out in hand-cuffs…MAYBE the FBI investigation of this scam will get rid of them but it will be looong after the election.
    (If the “SHADOW WARRIORS” in our FBI and CIA and State Department don’t puposely fudge up the investigation)

    Comment by Mobus Con — September 30, 2008 @ 12:50 pm | Reply

  14. “Yes, members of both parties can share the blame, but if someone doesn’t stand up and stop Obama’s Marxist freight train, then it all won’t matter a damn.”


    Contrary to what trash you hear on the news the blame can be squarely laid on the democrats. I am not going to explain why because you can do your own research but I’ll throw you a bone.
    Go look into who originally backed the idea of a bailout…every single one of them was a democrat.

    Although I take Rush Limbaugh in moderation he made a nice point this morning on his show about this whole mess. He said in so many words that this was all a big tactic used by the democrats to make it look like the republicans were at fault. I’m not going to quote his words either…again go look it up.

    Comment by Patterson — September 30, 2008 @ 1:11 pm | Reply

  15. “…if we had an actual free press performing its function as the protector of the public…”

    Therein lies THE core problem in America today. If only we could fix it…

    Comment by JeffM — September 30, 2008 @ 1:18 pm | Reply

  16. Define Poor please? Don’t ya just hate gettin’ punished for the idiot behavior of someone else in the classroom?

    Comment by Guy de La Fald — September 30, 2008 @ 1:19 pm | Reply

  17. “If you’ve stilll got 700 billion kicking around (as aparently we did) then distribute it (proportionately) to the poor.”

    Great. More socialism. Where the hell do you people come from? Did someone leave a gate open?

    Comment by JeffM — September 30, 2008 @ 1:20 pm | Reply

  18. Yes , it is all Paulsons fault (sarcasm here) but notice the writers solution. Put RALPH NADER in charge.
    This is the same delusional lunacy Mr. Rosenbaum has been selling as rsepectable opinion for quite some time .
    No one responsible for actually causing this mess should be accountable ,just the people trying to correct it.
    If all we need are scapegoats, there are plenty of provable candidates to go around. I’ll make a suggestion for the first name on the list, Rep. Barney Frank D – New York.

    Comment by WR Jonas — September 30, 2008 @ 1:22 pm | Reply

  19. I think Frank’s from Massachusetts.

    Comment by Brad — September 30, 2008 @ 1:25 pm | Reply

  20. OUT-INcumbents for BAILOUT



    2. then see how they voted,2933,430321,00.html

    3. and inform them if you wish to vote them out via phone, email etc.

    1,2,3…could not be any easier.

    Comment by Rachael — September 30, 2008 @ 1:30 pm | Reply

  21. Brad , thanks for the correction I have my folded humble hat in hand. WRJ

    Comment by WR Jonas — September 30, 2008 @ 1:35 pm | Reply

  22. We’ve all seen what the ‘law’ can do at some point in our collective lives. imperious statements like yours make me laugh; do you live in the real world? lawyers, judges (once lawyers) and politicians are all snake oil salesmen.

    Poulson, although apparently somewhat naive re: politics, IMHO was just trying to fix something before it got too broke…something he knows a little bit about. I doubt he knows that much about writing bills

    Businesses play by (or get by) the rules they’re given. Pretty much like everyone else. Lawyers,politicians and JUDGES like to change the rules when they can (usually to suit their own ends or their over-inflated Ego). That’s what got us into this mess.

    Comment by bear — September 30, 2008 @ 1:41 pm | Reply

  23. Paulson may need to go, and indeed some players on wall street were complicit in this debacle. But look who those players are –Countrywide, Goldman Sachs, etc. All the big boys are run by Democrats who are helping out Obama on one hand and complaining about bush while stoking the flames at Fannie and Freddie for the last 4 years.
    It’s clear some people need to be investigated. Barney Frank, Christopher Dodd, Angelo Mozillo, Jim Johnson, Franklin Raines, Jamie Goreick, Jesse Jackson junior –these people all profited from the mess at Fannie and Freddie, they should be forced to pay back everything they got in Campaign contributions and stolen bonuses.

    Comment by tom cuddihy — September 30, 2008 @ 2:17 pm | Reply

  24. In the white-bread world getting fired is a big deal, but lots and lots of people don’t grab for that glam job in the accounting department and expect to hang on for thirty years. Radio dj’s are hired and fired on a whim; construction trades jobs end with completion of a project, as do contract programmers’ assignments in Silicon Valley; actors and support personnel start collecting unemployment when filming is over; and there are many other examples. So I think firing Paulson isn’t really much of a response. Where are our foaming-at-the-mouth federal prosecuters who sent Martha Stewart to jail for spitting on the sidewalk, and imprisoned Conrad Black for what wouldn’t even amount to a rounding error in the present debacle? The FBI now says they’ve begun investigations (and I’m sure it’s not easy to divert manpower from the eternally burgeoning threat to the Republic from a clutch of septuagenarian Italians in the Bronx), so maybe one day we’ll see Paulson and especially Alan Greenspan being barneyfranked in glissando continuo by some felonious nose tackle there in the cellblock. But I wouldn’t hold my breath. Their kind are really wired-in.

    Comment by JWest — September 30, 2008 @ 3:07 pm | Reply

  25. Ralph Nader? RALPH bleeding NADER??? Ron, you really need to stick to store-bought mushrooms.

    Comment by Pee Wee Herman, Community Organizer — September 30, 2008 @ 3:17 pm | Reply

  26. I thought the Republicans were all about taking care of the rich. If that is so, why is the Democratic leadership of the Congress trying to bail out the rich fat cats of Wall Street. They could care less about Main Street. Why was the earmark tagged on for ACORN? They are Acorns themselves, Nuts!

    Comment by Anon — September 30, 2008 @ 3:38 pm | Reply

  27. “…still got 700 billion kicking around (as apparently we did) then distribute it (proportionately) to the poor.”

    Ya gotta be kidding. Obviously not paying attention, because if you really were, you would know that this 700 billion is not just “kicking around.” We are currently running a DEFICIT. That means that there is not a centime kicking anywhere. This is all NEW DEBT – meaning a larger DEFICIT – meaning more TAXES to cover this bet.

    You had me in basic agreement. I have no idea what Paulson was thinking. But, you lost it completely at the end.

    Comment by HT — September 30, 2008 @ 3:47 pm | Reply

  28. What I find weird is that Keynesian consumerism economic policies got us into this. Yet, almost everyone is trying to use or justify the use of the same policies to fix the problem the policies caused in the first place.

    Kinda like using a flamethrower to put out a fire that the flamethrower caused inna first place.

    Comment by Warren Bonesteel — September 30, 2008 @ 5:02 pm | Reply

  29. There is no $700 billion. The proposal is for the government to finance (that’s borrow to you) 700 billion to bail out the banks who were forced to lend this money to deadbeats by the government.

    My share would be $2,333 based on being one of 300 million citizens. Since I’m one of the ones who actually pays taxes to the government, it’s a lot bigger. I have no desire to pay for a house that I don’t live in.

    I don’t know about you, but I’m not in favor of giving our criminal class (credit Will Rogers) a cent more than is absolutely necessary to keep the economy functioning.

    In a just world, there’d be politicians decorating the lamp posts on Pennsylvania Avenue. They made this mess. They are not the ones who will fix it. I doubt they are human anymore. May my party win, and the people be damned.

    It is actually depressing to ponder the stupidity of the electorate. In November, most of them will be reelected, despite being part of a Congress with an approval rating near ten percent.

    Comment by MarkD — September 30, 2008 @ 5:56 pm | Reply

  30. I think Paulson is a stooge too, for some very powerful people, so much so that when he said jump, Bush jumped, no questions asked. He should be put on a plane and waterboarded until we find out who he is really working for, who else is involved, and what is their plan. Then charge them with treason and have them executed.

    Comment by May B Wright — September 30, 2008 @ 6:31 pm | Reply

  31. Ok, the thing I want to know is how do we stop this bill when it comes up again? This thing will come up again and we need to mobilize people to stop it. Inundate talk radio (who agrees with us that the bill is horrible) with calls that state you will either fire your representative and or pull services out of banks that want to benefit from this bailout.

    People should just threaten to walk away from Goldman and Sachs and others involve if they let this bill get signed. Like we care if we can’t get more credit. If we can’t we can force the market to reduce prices to meet current needs instead of propping prices up. Oh jeez we wont get to have cars? You kidding me? We stop buying I guarantee the sellers will adjust until we do start?

    Comment by KC-Hollywood — September 30, 2008 @ 6:45 pm | Reply

  32. Absolutely, Paulson’s suggestion was absolutely nutty, but Reid, Frank, Pelosi and Dodd have been just as flagrant in not doing their jobs and handing off favors to their cronies. They all need to go and I personally would do what ever I could to help some effort to make it happen. These people give new meaning to the word despicable.

    Comment by — September 30, 2008 @ 7:11 pm | Reply

  33. Have to agree with HT above. I completely tracked with you until the end. Ralph Nader? Tell me you’re kidding. Please.

    Back to the part before you lost me: Paulson’s got Potomac fever bad and trying to be all things to all people. He does need to go. On top of everything else, he was chairman of the Nature Conservancy board and after leaving for Treasury, he installed one of his Goldman cronies as president of TNC. Those guys smell huge money in the form of trading global carbon credits and want to be in on the action.

    Paulson should go and never be seen or heard from again.

    Comment by Webutante — September 30, 2008 @ 7:13 pm | Reply

  34. HT: If we incurred 700 billion debt for Paulson’s bailout package to purge the system of toxic loans. We can also incur 700 billion debt to directly take care of the toxic loans. Do we really believe taxpayers will make money on his deal?

    Buy all foreclosed homes and distribute them to the “owners”. Like Chinese communists did in the 1950’s. Taxpayers should have saved a huge bundle. Banks recoup their write-offs, and clear their toxic loans.

    I have a feeling Paulson was overreacting to his own shrinking portfolio. After all, Leahman Brothers’ CEO was reduced from a billionaire to a 50-millionaire. Paulson was Goldman’s CEO, he may be facing “destitution” if he didn’t do something to save his golden parachute. He should have huddled with Congressional leaders of both parties before he threatened taxpayers with Armageddon if they did not give him a check, no questions asked. The amount on the check was plugged from thin air, the effectiveness of the scheme was iffy. There might be other alternatives that he never explored or explained.

    He wanted immediate action two weeks ago. Well, the sky had not fallen since then.

    We were skeptical of Gore’s global warm-mongering until the temperature cools back to that of the 1930’s. Why should we not be skeptical of Paulson’s finanical doom-mongering?

    Once he declared doomsday, we dared not follow his advice all the way off the cliffs.

    Comment by ic — September 30, 2008 @ 7:37 pm | Reply

  35. Dear President Bush,

    This is an open email being sent to you, and everyone else in the U.S.government.

    I guess our good Senators, and the rest of our ELECTED government officials JUST DON’T GET THE MESSAGE – the one that was sent by the House vote.

    Not in any form.
    Not under any circumstances.
    Not by any name Whatsoever.
    Not NOW, and not EVER!

    Not just “NO”, but “HELL NO!”

    And certainly not until after Paulson, ex Wall-Street CEO, who has a 700 million dollar conflict of interest, and brings in AIG cronies to work on bailing out AIG, steps down or is FIRED. HE IS TAINTED, right along
    with YOU and all the criminals that are running the U.S. House of Representatives.

    If you want any bill to pass, IF THIS IS TRULY SUCH A CRISIS, the first step is to FIRE PAULSON, or have him STEP DOWN. The next step would be to put McCain and Palin on the stage, together, explaining why. You, Paulson, Pelosi, Dodd, Frank, Reid and every other House Democrat HAS LOST ALL CREDIBILITY OUT HERE ON MAIN STREET by attempting to shred our Constitution.

    WE THE PEOPLE do NOT support this bailout.

    If John McCain votes to support either the Dodd amendment to HR 1424, or HR 1424 itself I will not vote for him, and I will NEVER VOTE Republican again.

    Everyone needs to get this through their heads – 80% of the people in the United States ACTIVELY OPPOSE this bill in ANY FORM. And, yes, we are quite aware of the consequences, and prepared to pay the price to avoid having our Constitution shredded. If ANYONE IN WASHINGTON actually works for “We the People”, they will oppose this shredding of our Constitution.

    Will you people in Washington get this through your heads:

    NO BAILOUT – UNDER ANY CIRCUMSTANCES, or by ANY NAME. We completely understand the consequences, and are willing to accept them to save this country and our Constitution. And if you are really so interested in
    destroying the Republican Party – keep making those 9:00 a.m. TV appearances and trying to scare the market. You are making us ABSOLUTELY FURIOUS. You are MANUFACTURING this crisis.

    NO ONE OUT HERE TRUSTS EITHER YOU, PELOSI, DODD, FRANK, REID, or PAULSON. You have ZERO credibility. If you want this bailout to pass, you’d better get McCain and Palin together on TV, explaining why, after FIRING Mr. Paulson – the Wall Street CEO with so much at stake, so many irons in the fire, so desperate to “fix” this “crisis”. WE DO NOT BELIEVE YOU.

    WE do not buy the “credit and liquidity” nonsense. WE can see that is blatantly and patently FALSE.

    We don’t care that people “won’t be able to buy new cars unless they have good credit”.

    We don’t care that people “won’t be able to buy washers and dryers without good credit”.

    We don’t care that “people won’t be able to get student loans without having good credit”.

    We DON’T BELIEVE that businesses will close down, only BAD ONES.


    SOUND banks and credit Unions don’t seem to have a problem lending money to GOOD credit risks. The American Dollar is strong and is literally crushing the Euro. The price of oil is dropping. And you appear to want to FIX SOMETHING THAT IS NOT BROKEN, EXTINGUISH THE “FLAMES” BY PUTTING ARSONISTS IN CHARGE OF PUTTING OUT THE FIRE.

    Honestly, we don’t care about ANY OTHER of the absurd and utterly ridiculous explanations and cautions that have been put forth. You’re making this all sound like “Can I get me a huntin license, yuck, yuck.”

    LET ME REITERATE – YOU’RE MAKING US ALL COMPLETELY FURIOUS BY TALKING DOWN TO US IN THIS FASHION. You need to let Freddie and Fannie go bankrupt, and prosecute EVERY crooked politician that took EVER TOOK money from them – which covers just about every Democrat there is, doesn’t it?

    End of story. Period.

    I am an American, Taxpaying, Republican voter
    and I approve this message.

    Comment by JinnyB — September 30, 2008 @ 8:20 pm | Reply

  36. Immediate arrest of the top perpetrators would be a good start

    Comment by kabud — September 30, 2008 @ 8:34 pm | Reply

  37. I think Paulson has a conflict of interest and he should not be part of this plan. He should be fired! Others who were also asleep at the switch should also be removed. We should not be bailing out these banks! What about the people who losts their homes or had to walk away because they could not afford them anymore. What are they doing for them? Jail would be too good for this greedy bunch.

    Comment by Rose, New York — September 30, 2008 @ 8:36 pm | Reply

  38. Seems to me Ron’s “spread it around” was hyperbole, a kind of Through The Looking Glass fantasy intended to make us think. I suspect he knows there is no $700 billion buried in the back yard just in case of a crisis like this. But once you make the stupid assumption that we can painlessly and fairly summon up that much cash, then you might as well follow through with another goofy notion that is even more detached from reality. That would suggest that the original idea is out to lunch. Eh?

    Comment by Benson — September 30, 2008 @ 8:47 pm | Reply

  39. With only 3 months left in office, I content that this was a ploy by George Bush, Henry Paulson, Dick Cheney, to put $700 trillion in their own pockets. Wall Street would never see a penny of it. And if the scheme had gone as proposed, 3 pages, no oversite and get it done with in 3 days, they would have pulled off the biggest heist in US history.

    Comment by Bettie — September 30, 2008 @ 9:46 pm | Reply

  40. JinnyB-
    You express my feelings exactly!
    This whole thing STINKS!

    Comment by Richard — September 30, 2008 @ 11:48 pm | Reply

  41. […] of iffy about the idea of the bailout, and even think that the bill should not have been passed.  They think it may not have even been constitutional. First of all, Treasure Secretary Paulson should have been fired when he sent Congress a flagrantly […]

    Pingback by Panic! « In Other Words — October 1, 2008 @ 5:59 am | Reply

  42. When you look at the link below to the proposed “Federal Housing Enterprise Regulatory Reform Act” notice the date at the top, and then look at the co-sponsors. It’s a short list.

    Then, when you read the responses below, it should become pretty damn clear why the Dems are trying so hard to blame this on the Republicans. I say, handcuff the bastards, including Nancy Pelosi. Surely its illegal somewhere to be as stupid as she is.

    Maxine Waters: Through nearly a dozen hearings, we were frankly trying to fix something that wasn’t broke. Mr. Chairman, we do not have a crisis at Freddie Mac, and particularly at Fannie Mae, under the outstanding leadership of Franklin Raines. [Raines would barely avoid prosecution for fraud.]

    Gregory Meeks: … I’m just pissed off at OFHEO [the regulators trying to warn Congress of insolvency at the GSEs], because if it wasn’t for you, I don’t think we’d be here in the first place. … There’s been nothing that indicated that’s wrong with Fannie Mae, Freddie Mac has come up on its own … The question that then comes up is the competence that your agency has with reference to deciding and regulating these GSEs.

    Lacy Clay: This hearing is about the political lynching of Franklin Raines.

    Barney Frank: I don’t see anything in this report that raises safety and soundness problems.
    Take a good look through this video in 2004, and ask yourself who on this panel wanted more regulatory oversight of Fannie Mae and Freddie Mac, and which members spent their time attacking the regulators. When Barack Obama talks at debates about how the past eight years of regulatory laissez-faire created the problem, he may want to review the transcripts of these hearings and note that Democrats repeatedly undermined regulators and called them everything from incompetent to bigoted in their rush to keep the status quo at Fannie and Freddie.

    Comment by Syd B. — October 1, 2008 @ 8:15 am | Reply

  43. Sorry, I can’t get the video link to work.

    Comment by Syd B. — October 1, 2008 @ 8:18 am | Reply

  44. I am opposed to the bail-out myself, but I would like to correct the error, “This is breathtaking contempt for the rule of law (the no judicial review provision)” Article Three contains this exception for judicial review: “In all the other Cases before mentioned, the supreme Court shall have appellate Jurisdiction, both as to Law and Fact, with such Exceptions, and under such Regulations as the Congress shall make.”

    Comment by Marco — October 1, 2008 @ 8:35 am | Reply

  45. I was listening to the radio from Charlotte, NC about that town’s fragile state of mind (Wachovia, whose shares went from 57 to 1 dollar per, in a year, is headquartered there). The radio host (named Tara) read a list of the top ten employers in Charlotte: Wachovia, state, city and local government, two hospitals, Citibank, U.S. Airways, virtually all service jobs, all held up by a weightless cloud of debt. The anxiety in the voiced of Tara’s listeners was the only thing with true gravitas. Nothing is gonna save us but ourselves. but to prepare, read John Steinbeck, books about people surviving without cash, for years and years

    Comment by charlie finch — October 1, 2008 @ 10:32 am | Reply

  46. Give the whole mess to Al Davis. He may not make any more of it than he did the Raiders, but at least he can fire those responsible!

    Comment by NotherThot — October 1, 2008 @ 10:55 am | Reply

  47. In 2009 the Bank of International Settlements
    will Audit the Federal Reserve, who is the
    same as the too big to fail banks plus a
    couple of other big banks,(Chase, BOA, ect)
    and when they cut there credit rating or
    declare them insolvent. We all go down with
    the fraud of the Federal Bank that was chartered in 1913 to keep the dollar at a
    dollar not the 1.5 cents it is worth today.

    John McCain does not know finances and keeps
    Phil Graham in his ear. His financial advisers are Obama people no one could give
    him that bad advice and be for him. Also the
    advisers giving advice to Governor Palin must
    be Bush advisers that got him his 25% approval rating.

    Doesn’t McCain know that the Governors appeal
    is that she is not in bed with the Washington crowd. They should say that International events change so fast that
    no one knows what they would do and good advisers will give her the facts at that time. Obama should clue her into the extra
    7 states and their votes so they are on a
    level playing field. She only has to deal
    with 50 right now, and if elected she can
    get the info for the others from him that
    must be the Senator for them and Ill.

    Let’s see 95% of blacks say they are voting
    for Obama!!! So PBS’s Gwen Ifil is for Obama
    what is the McCain camp thinking?

    Cheers, rfm

    Comment by Ron Murphy — October 1, 2008 @ 1:23 pm | Reply

  48. All they have to do to fix this is STOP the bailout nonsense. Everyone is waiting to see if they can get 75 cents on the dollar from the bailout, or if they’re going to have to sell at 25 cents on the dollar. The politicians are being absolute idiots on this one – they’re causing the problem. Once they either kill that obscene bailout DEAD, or pass it, liquidity will suddenly appear.

    It’s the greed over the bailout money that has things jammed up. If they pass that piece-o-crap bill tonight, the market will head straight down to around 10,000 as the “little guys” pull everything out of stocks. If that passes – better sell tomorrow, if you can find an up-tick.

    There used to be people around that knew something about the market – these days there are only talking heads repeating whatever the current meme is – i.e. Doom and more Doom if something doesn’t pass. They are IDIOTS…

    Comment by JinnyB — October 1, 2008 @ 2:23 pm | Reply

  49. >the market will head straight down to around 10,000 as the “little guys” pull everything out of stocks
    i think so

    lets see what tomorow rings

    so far turkey-looking fat balloons in the senate DID pass the piece-o-crap bill

    Comment by kabud — October 1, 2008 @ 6:51 pm | Reply

  50. Democrats usually call for investigations. They haven’t this time.

    It’s because the money and blame all lead back to them.

    Read Simpson’s piece over at “” on 9/28. “Barack Obama and the Strategy of Manufactured Crisis.”

    Don’t cast a vote ’til you’ve read it.

    Comment by Believer — October 1, 2008 @ 7:50 pm | Reply

  51. What people don’t understand is why some of us are so against the current Republican ticket, but we have an obligation to fight against history of ever being repeated again. Many of us out here are not fighting for the Democratic campaign but are fighting against an ideology.

    1) An ideology that completely mirrors the ideology of this past 8 years.
    2) An ideology that recognizes the few while completely disregarding the masses.
    3) An ideology that believes in taking military action against Iraq, an incident that is completely unrelated to 9/11, without solidifying our claims beforehand. In the present, we have found no evidence of weapons of mass destructions or a tie to Osama Bin Laden. The devastation of this war has cost us over 4,000 of our brave troops and counting, over 1/2 trillion dollars of taxpayer’s money and counting, and over 1 million Iraqi lives unrelated to the terrorists or insurgency.

    Cost of the Iraq War —

    4) An ideology that still believes that the Iraq War is the right war on terrorism when the Afghanistan War should had been the right war on terrorism, where Osama Bin Laden actually was until he slipped into the mountains and into Pakistan’s territory now. The Iraq War also diverted our attention away from the Afghanistan War. We now have extended our resources in two separate places and have heightened our risk to our troops, our expenses, and creating another dilemma that will take quite some time to finalize. The Iraq War will not go away overnight and it is now our obligation to see it all the way through for God knows how many more years. This has also been the most unpopular war in the eyes of the world’s communities.
    5) An ideology that believes that we are at our safest state since 9/11, when a recent terrorist plot was still trying to enter Great Britain’s airports with liquid explosives heading directly to us, but thankfully the plot was foiled. While in Afghanistan, the terrorists are regrouping and strengthening and we have recently suffered another high casualty to our troops yet again within this past month. We currently have the least amount of alliances in the world’s communities due to this unpopular Iraq War. True national securities are the ties that bind us to our world’s communities and the ties that bind them to us.
    6) An ideology that vetted one of the most inexperience VP ticket in history, from foreign policies to national defense. If God forbids that anything happens to this President if elected and is stricken with illness, this VP will be running the country. For a more compelling look at Sarah Palin’s VP readiness, please look at these links below —

    7) An ideology that believes in “the fundamentals of our economy are strong” while we are facing the highest mortgage foreclosure crisis, high unemployment rate, and the largest collapse of our financial infrastructures since The Great Depression of 1929.

    This is an ideology that many of us in America are against. Whether this ideology is in the Republican or Democratic ticket is not the main issue but the fact is that America does not want to fall into another 4 more years of devastation. We cannot afford this anymore.

    Comment by Jeff — October 3, 2008 @ 4:16 pm | Reply

  52. Besides the corrupt banks, mortgage lenders and irresponsible homebuyers, the Democrats and Mr. Barney Frank are to be blamed for this mess. Even Bill Clinton blamed the Democrats on this (look at what he says on the last sentence of this article):,3566,432501,00.html

    Or, this one from the Boston Globe outing Barney Frank:

    Comment by 888 — October 3, 2008 @ 11:16 pm | Reply

  53. @Ron Rosenbaum

    First of all, Treasury Secretary Paulson should have been fired when he sent Congress a flagrantly unconstitutional bill that would make him tin-pot dictator with no judicial review for his actions. As if the constitution were toilet paper

    I didn’t like the judicial review provisions any better than you did, Ron, but flagrantly unconstitutional? Probably not, per Article III, Section 2 of said U.S. Constitution:

    “In all the other cases before mentioned, the Supreme Court shall have appellate jurisdiction, both as to law and fact, with such exceptions, and under such regulations as the Congress shall make.”

    Comment by ProgMeister — October 5, 2008 @ 8:36 pm | Reply

  54. Why hasn’t there been a more broad based demand to have Paulson fired? This guy is completely corrupt and incompetent. He has done nothing to stabilize our financial system and the most obvious remedies have not been implemented.

    1) Reinstate the uptick rule on short sales;

    2) The Treasury should buy into all the major banks with the same terms that Warren Buffet got from Goldman Sachs or the Treasury got from AIG;

    3) Abolish the rule that bankruptcy courts cannot renegotiate mortgages. It is obvious that house prices need to fall further so that the market can find its bottom;

    4) Replace Mueller at the FBI and replace him with someone who will prosecute the mortgage company executives that executed the predatory practices that created the housing bubble;

    5) Pass a law in Congress that all financial derivatives valued greater than $100,000 must be registered within 30 days under penalty of law with the US Treasury and have Oracle build a web-based application to accept all this data. Once the US Treasury knows who has what, the US Treasury can quickly and efficiently unwind all these derivatives and recommend legislation as to what derivatives will continue to be legal and which will be banned under the rule of law.

    Comment by J Snow — October 9, 2008 @ 9:48 am | Reply

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