Hank Paulson's Goldman Sachs - The Consumate Cronies?
Hank Paulson is part of a generation that has come to believe the crown jewels of American capitalism are Wall Street. As I have commented repeatedly, this is completely erroneous. Paulson is simply trying to save what he knows. Yet, he's looking in the rear view mirror. He needs to embrace the new environment unfolding. But, it is very apparent that is something he is unable to do. Were Paulson able to embrace change, his economic principals would be drastically different. And, we would most assuredly be better equipped to deal with the economic shocks forthcoming. Paulson is simply cementing more problems by his misguided policies. But, then so are all global leaders supporting a continuation of an environment that cannot be saved. A few appropriate perspectives come to mind as it pertains to today. I've been in the change business most of my life by helping executives and companies transform their businesses. And, I can tell you almost everyone hates change and many will resist it to the point of subverting it. And, secondly, youth almost always lead a revolution of ideas or ideals be it business or otherwise. Youth doesn't need to take the shape of a thirty year old person. It could also be youth of the mind. It is truly so that you are only as old as you feel. I am not aware of any major social transformation that has taken place without the inclusion and willingness of youth. That includes very destructive social transformations.
Key areas where Paulson has failed the people are failed trade negotiations and intellectual property rights discussions with China, instead of addressing confidence with transparency and regulatory enforcement eighteen months ago he has continually tried to use lip service to restore confidence, he tried to create this super SIV to bail out Wall Street when that crisis was front and center and now he wants to use $700 billion to bail out Wall Street. All, while main street gets what? Paulson may, through misguided beliefs, think he is helping the average American but what he is actually doing with each and every action is taking another brick our of the wall of confidence. At least it finally appears the pressure from main stream experts and from the public has become so severe that he has abandoned an overt bailout in lieu of a plan similar to what we originally discussed where the sovereign would benefit from any upside on government investment, but only after his efforts at convincing us otherwise failed miserably.
Now, we have an interesting article highlighting Hank's career and the extent of political interconnectedness at Goldman Sachs. Free markets? Competing based on merit? We don't need no stinking competition. Have political connections kept Goldman above the fray of competition? How interesting the article is on a socialist web site. Hank Paulson is assuredly the most socialist leaning Treasury Secretary in our history. But, instead of socialism for the people, still misguided, it is socialism for the banking industry at the expense of the people. What do they call corporate socialism at the expense of the people?
Key areas where Paulson has failed the people are failed trade negotiations and intellectual property rights discussions with China, instead of addressing confidence with transparency and regulatory enforcement eighteen months ago he has continually tried to use lip service to restore confidence, he tried to create this super SIV to bail out Wall Street when that crisis was front and center and now he wants to use $700 billion to bail out Wall Street. All, while main street gets what? Paulson may, through misguided beliefs, think he is helping the average American but what he is actually doing with each and every action is taking another brick our of the wall of confidence. At least it finally appears the pressure from main stream experts and from the public has become so severe that he has abandoned an overt bailout in lieu of a plan similar to what we originally discussed where the sovereign would benefit from any upside on government investment, but only after his efforts at convincing us otherwise failed miserably.
Now, we have an interesting article highlighting Hank's career and the extent of political interconnectedness at Goldman Sachs. Free markets? Competing based on merit? We don't need no stinking competition. Have political connections kept Goldman above the fray of competition? How interesting the article is on a socialist web site. Hank Paulson is assuredly the most socialist leaning Treasury Secretary in our history. But, instead of socialism for the people, still misguided, it is socialism for the banking industry at the expense of the people. What do they call corporate socialism at the expense of the people?
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