Sunday, June 26, 2016

Wall Street Oligarchs for Hillary!

By Karl Denninger

Why am I not surprised?

Henry Paulson, a Republican who was U.S. Treasury secretary during the 2008 financial meltdown, on Friday called a Donald Trump presidency "unthinkable" and said he will vote for Democrat Hillary Clinton.

Yeah, it's unthinkable because if Paulson's former firm (Goldman Sachs) got into debt trouble Trump would probably do what he did with his firms that also did so -- tell them to file bankruptcy instead of bailing them out.

He might also prosecute the firm and the executives for fraud, particularly if (as was the case in the bailout in 08) the firm was on tape calling things they were selling to clients as "good investments" by such descriptive monikers as "vomit" and "dogsqueeze."

"I can't help but think what would have happened if a divisive character such as Trump were president during the 2008 financial crisis, at a time when leadership, compromise and careful analysis were critical," he said.

He sure as hell wouldn't have his Treasury Secretary try to ram through a two-page bill that gave him plenary power to blow the taxpayer's money without any check, balance, review or ability to prosecute even if the conduct was later shown to be utterly fraudulent!

But that's exactly what Hank Paulson did, and in addition he intentionally misled Congress in that his original proposal which was voted on the second time was to buy "toxic assets" but by the time it reached the floor of Congress he had already decided not to buy assets but rather to provide direct funds via various other mechanisms to the firms in question and did not inform Congress of his "changed" intentions.

In other words he actively and passively misled Congress.

Trump probably wouldn't have allowed that and if the Statute of Limitations had not already run on this conduct (I believe it has) he might even prosecute and jail that rat bastard.


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