Paulson's 300 Point Panic Trigger

Every time the Dow drops 300 points Treasury Secretary Paulson has to jump. He and his buddy Bernanke at the Fed are two of the most incompetent people to ever be appointed to their respective positions. In one year these guys have dramatically lowered interest rates, pumped hundreds of billions of dollars of "liquidity" into the banking system, opened the Fed to non bank Wall Street investment firms so they could prop up the unregulated hedge fund market and themselves, and now the idiot Paulson takes control of Fannie and Freddie. Paulson still works for Wall Street only he sits in a taxpayer supplied office and has access to the largest checkbook in the world.

I know it has been fashionable for Dick Chaney and Presisent Bush to use the Treasury to write huge checks to their buddies over the past 8 years under the umbrella of the Iraq War, but to put a guy like Paulson in the administration so he could give his Wall Street buddies a gift every time the market goes through a badly needed correction, has been unlike anything Washington has ever experienced.

Back on 20 August when CEO Daniel Mudd himself was on the Diane Rehm Show in Washington, 88.5 FM I sent the following message:

Several years ago wall street ran an intense PR campaign to do away with Fannie Mae and Freddie Mac. They were making billions and wanted to make more in the mortgage business. Their business model making money from retail level to securities to derivatives was so profitable they couldn't wait to destroy Fannie and Freddie and take that business. Today it is no different. Wall Street and its PR
campaign is doing everything they can to destroy these organizations and put them in private hands not unlike the same efforts they made to destroy social security and put it in private hands. I would like a comment from your guests.

I did not get the kind of response I expected but for the following week after Mudd's "appearance" on the show Fannie's stock rose from $4.5 to $7.5 per share. It was clear from Mudd's comments that Fannie was sound at least till the end of the year and that Paulson needed not meddle in their affairs.

But watch out when the market falls 300 points in a day!!! The idiot Paulson will spring into action.

Paulson has said he is leaving his post on 20 January 2009. What he has just done is his big gift to his pals on Wall Street. Once the Government takes over Fannie and Freddie, any idiot can see that the companies will NEVER be floated back on the market as they once existed. They will be broken down piece meal and sold to Wall Street and be no more, just like those guys want it. They hated having the competition, even though they proved their total incompetence in the mortgage business, and they can not wait to get their hands on the cash cow business that Fannie and Freddie ran until some really bad management allowed them to play around with the garbage Wall Street was selling as "securities" during the height of the "mortgage rip off scam" that Wall Street Firms were running and put their government sanctioned, taxpayer backed capital at risk.

I am pissed and I cannot wait until Paulson and Bernanke are gone and someone with the concern of the American Citizen is in their respective posts (not to mention the White House) who also have some inkling of economic principals and doing what is "right" and not what will "benefit their buddies on Wall Street".