Wednesday, November 12, 2008
Paulson is clueless
Paulson should be fired immediately. Back in September he let Lehman fail, for no apparent reason and that touched off the systemic nature of the current crisis. Look at a chart of any market—stocks, bonds, commodities, the dollar—and you’ll see that all hell broke loose when Paulson decided to let Lehman go under.
Today he admits his bailout plan stinks. So, instead of going with his first idea, which was buying troubled assets, he wants to support the very institutions that created those troubled assets in the first place.
On the suggestion of using some of the money to help GM and the other U.S. automakers, he states confidently, “That would be the wrong way to go.” If recent history is any guide, we ought to get very worried when Paulson confidently states what we ought to be doing. This guy should be given the boot immediately.