Update on Financial crisis testimony by Treasury Secretary Paulson
As I listen to the testimony of Hank Paulson, Treasury Secretary for the Bush Administration, I am amazed that there is little definition as to the oversight structure that they want to put in place to monitor how the $700 Billion dollars requested from Congress. This money is to be used to deal with the financial crisis caused by the sub Prime Mortgage problems, Based upon everything I have heard so far, there is no real definition as to mechanisms, controls or oversight planned to monitor the distribution of funds. Paulson is basically saying "Trust me" and lawmakers are wary, as they should be.
We got into this mess because there was not oversight, regulations or transparency. I don't hear anything which outlines answers for those concerns. Is there another action which could be taken and what other actions have we considered? We won't know as they are scared that if they take too long, things could get worse very quickly.
One thing I would add is that I am so glad we have Hank Paulson as Treasury Secretary versus previous Treasury Secretary's in the Bush Administration. His experience at Goldman Sachs is invaluable in this crisis. He knows more than any Senator questioning him.
One thing I learned that was new was that the Credit Default Swap market now totals about $62 Trillion dollars. That size of investments in anything is scary indeed!
We got into this mess because there was not oversight, regulations or transparency. I don't hear anything which outlines answers for those concerns. Is there another action which could be taken and what other actions have we considered? We won't know as they are scared that if they take too long, things could get worse very quickly.
One thing I would add is that I am so glad we have Hank Paulson as Treasury Secretary versus previous Treasury Secretary's in the Bush Administration. His experience at Goldman Sachs is invaluable in this crisis. He knows more than any Senator questioning him.
One thing I learned that was new was that the Credit Default Swap market now totals about $62 Trillion dollars. That size of investments in anything is scary indeed!
Labels: $700 Billion, financial crisis, Hank Paulson, lawmakers, Treasury Secretary, trust me
posted by Charles Amico at 9:25 AM
1 Comments:
I am a retired teacher - and a progressive. I have always lived frugally, within my budget.
I do not understand finance at the level in crisis.
I do know that my father came home to Youngstown, Ohio, in the mid '50s and said it would all be gone - and it was because of man factors, but especially because the corporations and government didn't plan on keeping the steel industry alive.
I do know that my daughter-in-law, who worked for home developers/builders, said that too many buyers were being sold homes with no proof of income required and no down-payment. She told of the problem four years ago.
We common folk have more common sense than the heads of these industries or, at least, less greed and more humanity.
Sorry, but as a Democrat, I can only think, "Shock Doctrine", "October Surprise", and Republican McCain versus Bush? Really!
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