Saturday, December 15, 2007

More Paulson

The plot thickens. Goldman Sachs reportedly originated a large number of the investment vehicles it wasn’t holding when things went pop. Right around pop time, Paulson becomes Treasury Secretary. Now why would a billionaire want a low six-figure civil service job? Maybe it’s the free health care.

The investment vehicles reportedly have a ‘buy back at face value in the case of fraud’ clause. Them are the big boys who were buying the investment vehicles and the big boys do not like to lose money. They could take it to court and target A#1 would be the Treasury Secretary of the United States of America. There could be prison involved for a whole slew of these smart guys. And smart guys facing prison would sing like canaries.

Which may explain why my government is about to pledge my tax dollars to insure a bunch of bad mortgages. The game ends when the credit rating goes away. Hard to predict what happens after that.

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