Paulson lies about the root cause of the financial crisis

[Solarfactor]

The Fed also pulled the M3 statistics in 2006.

WHY?

[Solarfactor]

Obama has aligned himself with the same Wall Street crooks like Paulson.

Never before has a cabinet been compromised of so many Wall Street goons.

Guess who Obama's top contributer is, too...

[VICSWEB1]

How he got away with this I will never know. Fascism is USA.

[Dragonfly6160]

I'm afraid both major political partys in the US are owned by Wall Street.

[RobinSpence100]

@Dragonfly6160 OMG superficially true. Hey crooks don't foot the bill for all they cause, and laugh at those they steal from and those framed and threatened to shut up but for thier LIES.

[Dragonfly6160]

EchelonMonitor- I agree with all of your comments.

[Dragonfly6160]

This crisis was the result of unregulated speculation in the real estate and securities markets. The real estate price drop just exposed the the incredible recklessness of banks and other financial institutions. Get ready for more of the same because congress will not regulate Wall Street.

[EchelonMonitor]

Another factor was credit card debt--people refinanced their homes to pay off their credit cards, then found themselves stuck with house payments AND credit card bills they couldn't pay.

But don't forget the war. The Romans had to tax their citizens to raise funds to go to war.

If Bush had had to raise taxes to pay for the war, the public would have been against the war, so he just borrowed from the international bankers to make people think it was a "free" war.

The collapse is the cost.

[mit26chell]

@Dragonfly6160 The core of the problem was our central bank who have authority to artificially set interest rates. Interest rates were too low, for too long. On top of this, the Fed has authority to purchase housing-related GSEs debt, which transfers the risk of a mass default, increasing the chances of a crash. These GSEs through their line of credit, distorted the housing market by allowing them to attract capital they couldn't have attracted if we were operating in a truly free market.

[pretorious700]

Pelosi and Paulson should both be in jail. We are seeing the most self serving corrupt idealogues in power now(continuing with Tim Geithner) that this country has ever produced. And that's saying something.

[hikupoopoo]

LOL wtf his finger lol thats fucking wierd

[TadRapidly]

He's distinguished alright: as the biggest criminal in american history. What a pathetic tool.

[chewbaca1989]

WTF is wrong with his finger.

Hey, these fuckers lead us down this path of destruction.

Fuck em' all, people? Fire them.

[mreisma]

why are these fucks still alive

[clintonlies]

In 2004, at the request of the major Wall Street investment houses, including Goldman Sachs, then headed by Paulson, the Commission agreed unanimously to release the major investment houses from the net capital rule, the requirement that their brokerages hold reserve capital that limited their leverage and risk exposure. Thanks Hank

[bonzelite]

they're coming together for an expeditious solution to FUCK the United States.

[clintonlies]

what is wrong with Paulsons left little finger ?

is he a Clone or an alien ?

he sure as hell is not human....

POS

[EchelonMonitor]

Oh man, I didn''t see that before--that is weird.

I guess his left little finger goes weird when he's lying.

[clintonlies]

maybe somethin like a secret Mason Sign

or Kabbala sign. Maybe he is casting a spell ?

LOL

It will take Magic to fix this mess.

[loqutor]

Plus, he's blinking a lot.

[pretorious700]

Then it stayed weird all of last year.

[lee0nline]

@EchelonMonitor you should play poker with the cunt, now you know his "tell". Lol

[centerM87]

With Paulson now seeking virtually unfettered authority to administer the largest bailout of the financial industry in U.S. history, many are wondering whether Paulson also doesn't come with enormous potential conflicts of interest.

[EchelonMonitor]

And CNBC propogandists lie and say Paulson is well respected by the public and congress and everyone is glad Bush chose him for Treasury Secretary--unbelievable--and they call themselves a "news" media.

Conflict of interest couldn't be more blatant--he was CEO of one of the companies to be bailed out--Goldman Sachs.

He received a $118 Million tax-free payout to become Treasury Secretary.

[1gunner1000]

for god sakes take back the fedral reserve from these crimanals.

[rmccay88]

@1gunner1000

No kidding man. Judging by some of these comments, it looks like more people need to read about Austrian economics...

[VisionQuest2012]

I hope the FBI uncovers the corruption and those accountants so willing to cook the books. There should be some serious penalties for accountants on the take. They are the ones who know what is going down. 50 years minimum in a federal prison with murderers,rapists, and the rest of the scum.

[housechores]

If the market continues to decline after the FED crooks win their prize, then the plan is to shut down the dollar and switch to the Amero which can then win support on a global scale. If the market recovers soon, then assume the FED is not done stealing money from taxpayers yet...and will create another economic melt-down in another 5 years or so.

[DsmB2007]

They strung up the CEO's of Enron, Tyco and others for doing crap 1000 times less serious than these EVIL and completely UNETHICAL Gargoyles have done!!!

[tophatzzq]

I am lost for words as to what is going on.nobody has any idea what companies, houses, goods are worth anymore. What I would like to see is local activism taking off and not elect any of the usual political crowd back into business, but I think I am going to be disappointed.

[EchelonMonitor]

Only hunger will get fat-assed Americans up off the couch and into the streets.

It may happen.

[rattlehead9127]

It's a shame that I can't watch the flames from the other side of the ocean. Instead I'm here paying taxes that go into bullshit like this.

[Redtide]

my country experienced real estate correction and declined in prices but we do not have this sub-prime issue. Real estate correction is a cyclical thing but this is a crook defending his criminal friends and then get the American people to pay for the problem that they help created. But most americans are too dumb and too into Paris Hilton and lohan to realise this.

[texan176]

The average person is too stupid or lazy to worry about this. Nothing will change until the power goes out and food on store shevles is not there anymore.

FACT

[BehindBlueEyesAgain7]

Paulson worked for Goldman Sachs and knew how these intruments worked and now he says Oh my God !! How did this happen?

He helps create this monster now he comes to the rescue....

Oh thank you Hankie your doing a swell job...

just like Brownie did at Katrina...

[slipcurve]

Liar, liar, pants on fire.

[RSnelli]

Is Pelosi a fascist too?

Guess so

[EchelonMonitor]

I'm using the term corporatist--means the same thing, but doesn't have the distorted impression that people have of the word fascist.

I just saw Chris Dodd, democrat and head of the senate banking committee, repeat the lie that the root of the problem is housing loans--they really don't want the public to know what the truth is.

[Wivanunu]

Bail out WallStreet (illegally) and give the bill to Mainsteet U.S.A....so we can pay for all the greed and careless spending that they did. Paulson is a liar along with all the men and women surrounding him....

[EchelonMonitor]

Don't you just love paying for other people's greed so they can continue in the lifestyle of the rich and famous?

[billy2bob]

Paulson is a Nazi.

[7Hook]

and the media in the US is a disgusting bunch of fools or liars or idiots.

I don't know what drives them, but it isn't vigilance and it isn't journalism and it isn't making any bit of effort to point the finger of blame where it belongs.

Does nobody in a position of power in the US give a damn that their country is being destroyed by its own people? Are they all working for the dream of that trumped up threat Bin Laden?

[EchelonMonitor]

I advise you to listen to the Alex Jones show today--it covers the real root cause of all this with guest Jim Marrs, author of Rise of the 4th Reich.

It will repeat until noon eastern time Monday.

You can find it in Shoutcast radio in Winamp or at shoutcast . com

[cb90006]

Look at his eyes.  He blinks repeatedly. This is a sign of a lack of honesty.

[TerenYoung]

He's not blaming Wall Street which created derivatives, he's not blaming the lenders that recklessly handed out mortgages and loans to people who couldn't afford them- instead he's blaming the homeowners who couldn't afford to make their payments

[7Hook]

the root cause was the wall street securitization fraud - CDOs and CDSs.

Yes they were based on mortgages in a housing bubble, but the Fed and Wall street blew that bubble. OTC Derivatives created the systemic risk. OTC Derivatives are a wall street invention.. OTCDs were known since 2001 to be weapons of financial mass destruction. Now they are exploding, and wall street and the banking system are extorting money from dollar holders and tax payers for their FRAUDS.

[7Hook]

And now, wall street financials and the banking system are being protected from the healthy capitalist process of creative destruction. In part, because they have exchanged among themselves ever larger debt instruments (derivatives), where if one fails they could all fail.

This is a sick banking system, and wall street is a sick destructive entity. it aint capitalist.

bailing it out REWARDS criminals & punishes the innocent

Hyperinflation is coming.

Blame the banking system & wall street.

[TerenYoung]

Agreed- the poster has no idea what he's talking about. Paulson isn't lying (possibly only telling half the story but he's going to protect his own- The Street) although Wall Street created derivatives off of the real estate debacle (reckless lending, people not being able to make their mortgage payments, etc.)- these assets decreased in value and the highly leveraged firms that owned them and borrowed using them as collateral are getting margin calls which creates liquidity issues.

[EchelonMonitor]

Paulson repeats the lie that the root cause of the current financial crisis was caused by the correction in the housing market, when the actual root cause is the privately-owned Federal Reserve creating huge amounts of dollars and making them available cheap to lending institutions, a process which they are continuing.

I guess he's following nazi Joseph Goebbel's principle that if you repeat a lie often enough, people will begin to believe it.

[EchelonMonitor]

Expansion of the money supply causes inflation, which even Bernanke was forced to admit in testimony before congress is a tax on the American people.

This is also how they're paying for the Iraq war, since the only other way to pay for it is to raise taxes.

So they don't raise taxes, but the American people pay for it with inflation, loss of home equity value, and loss of value in investment and retirement funds.

[EchelonMonitor]

Did the American people really think the country could spend $10 Billion per month in Iraq and it wasn't going to cost them anything?