A conversation with Henry Paulson, United States Treasury Secretary

with Henry M. Paulson
in Business
on Tuesday, October 21, 2008 * * * * *

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A conversation with Henry Paulson, United States Treasury Secretary

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Keywords:
election 2008
money
economy
paulson
credit crisis
Treasury
wall st.
ben bernanke
fiscal

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    1. tartufe  01/09/2009 02:29 AM Report

      Oversight finally waking up that Paulson robbed them in broad daylight? From WSJ 1/09/09.

      In the most scathing criticism yet of Treasury's implementation of the $700 billion financial-rescue package, a draft report being issued by the five-member congressional oversight panel said there appear to be "significant gaps" in Treasury's ability to track hundreds of billions of dollars of taxpayer money.

      Related Article

      Treasury Plans to Better Track TARP Funds

      01/09/09"The panel's initial concerns about the [Troubled Asset Relief Program] have only grown, exacerbated by the shifting explanations of its purposes and the tools used by Treasury," said the draft report, which found that the department has "not yet explained its strategy" for stabilizing the financial markets.

      The report faults Treasury on a variety of fronts: having no ability to ensure banks lend the money they have received from the government; having no standards for measuring the success of the program; and for ignoring or offering incomplete answers to panel questions.

    2. tartufe  01/07/2009 12:50 AM Report

      Paulson deserves immediate arrest. Ineffectual porky pig that has ravaged our treasury, debauched our currency and assured a repeat moral hazard down the road. Bailed out the hedge funds - the perpetrators of all the gymnastic financial instruments - and credit froze anyway - the very thing that was to be avoided. A blatant thief - along with the other financial wise-guys. Confidence world wide would be recouped, with the incarceration of Paulson, Bernanake, Rubin, other Citi and big bank CEOs. Alas, in an equitable world only.

    3. tartufe  12/23/2008 06:03 PM Report

      WORLD’S TOP THREE SCAMERS OF U.S. TREASURY: 1. OSAMA BIN LADEN, 2. NOURI MALAKI, 3. HAMID KARZAI. (HENRY PAULSON HONORABLE MENTION).

      OSAMA BIN LADEN

      11/01/04 - Al Qaeda leader Osama bin Laden said he is trying to bankrupt the U.S. through its war on terror, a strategy he says felled the Soviet Union two decades ago in Afghanistan, according to a translation by al-Jazeera television of his videotaped statement.

      “All that we have to do is to send two mujahedeen to the furthest point East to raise a piece of cloth on which is written al-Qaeda, in order to make the generals race there to cause America to suffer human, economic, and political losses without their achieving for it anything of note other than some benefits for their private companies,” bin Laden said, according to the al-Jazeera transcript.

      Well, the wiley old fox may live in a cave but he’s well on his way. And he even cites the M-I complex - accurately!

      NOURI MALIKI (VIA BUSH, CHENEY, M-I COMPLEX OF COURSE)

      By Bob Deans Cox News Service Published on: 02/28/08.

      The Iraq war will cost Americans between $3 trillion and $5 trillion, including military spending, broader economic costs and decades of benefits and medical care for combat veterans, a Nobel prize-winning economist told the Joint Economic Committee on Thursday.

      HAMID KARZAI

      “And Afghanistan will not allow the international community leave it before we are fully on our feet, before we are strong enough to defend our country, before we are powerful enough to have a good economy.” Karzai said.

      He then added that the world community can’t leave “before we have taken from President Bush and the next administration billions and billions of more dollars.”

      “No way that they can let you go.” said Karzai, whose remarks drew laughter.

      As of last summer, the United States had spent about $200 billion on the war in Afghanistan, according to congressional officials. Both Bush and President-elect Obama have made continued U.S. military involvement in Afghanistan central to their foreign policies.

      HENRY PAULSON - HONORABLE MENTION

      By: CNBC.com [28 Nov 2008 ] 01:56 PM ET

      Given the speed at which the federal government is throwing money at the financial crisis, the average taxpayer, never mind member of Congress might not be faulted for losing track.

      CNBC, however, has been paying very close attention and keeping a running tally of actual spending as well as the commitments involved. And there’s been quite a jump since we last tabulated things two weeks ago.

      Try $7.36 trillion dollars. That’s more than double what was spent on WWII, if adjusted for inflation, based on our computations from a variety of estimates and sources.

      COMMENTARY

      We (Congress/Bush) have given Mr. Paulson a license to steal (TARP).

      He has outdone the top three non-resident scammers, and history will wonder (1) how he did it, (2) how he gained the presumptive right(?), and (3) why he was never tried, convicted and incarcerated (for crimes against humanity if nothing else). Of course many other conspirators are due the same attention. Citigroup, a large recipient of TARP funds to rescue their hedge fund operations - the very corrosive part that should be allowed to fail - comes to mind.

      It’s obvious that to date the financial wise-guy hedgers got the bailout medicine when excising the putrescent corruption from the financial body before gangrene set in was what was really needed. The really vulnerable and more extensive mortgagee’s crises have gone begging (literally). The predators seem to prevail a la the law of the jungle. Maybe we’re not that much a higher form of animal after all?

      Oligarchic governance is a lethal combination. Like a corrupt cop.

      Paulson et al should be consigned to living under a Detroit bridge for the downturn’s duration with their victims. Osama bin Laden has to be applauding him and all his ilk - firing his AK47 in the air with great jubilation over the accomplishments of the three non US coconspirators, but doubtless equally exuberant for his unexpected partner and allies “Allie Baba Paulson and his forty plus thieves.”

      We’re run by a ship of fools, venal whores and grasping children.

    4. Alan Taylor  11/07/2008 09:12 AM Report

      Didn`t see this interview, but wonder if he was questioned about his time in the Nixon White House under John Ehrlichmann (1972-1973).

    5. Comment by and message approved by sock puppet for the hoped for preservation of fiscal, monetary and economic sanity. FAT CHANCE! Beating a dead pachyderm here because it is too big to continually ignore. $60 trillion too big ($200,000/capita)! This ig  10/26/2008 06:16 PM Report

      .

    6. Preston  10/26/2008 10:12 AM Report

      Also, behavior of the press is a good indicator of "preference", to "ignore", FACTS... So I spit in their face. And vote John McCain.

    7. Preston  10/26/2008 10:07 AM Report

      Fannie Mae and Freddie Mac were just carrying out the wishs of politicians to encourage home ownership of poor people and minorities. Financial people, liberal or conservative, Republican or Democrat, are smart. They didn't want to get stuck with the bill when the market figured it out or just ran it's course. So they created a way (or ways) to "share, excuse me, spread the pain". And boy, did they ever. Just like Steve McQueen in that movie.----------- But getting past all that, it looks like liberal ideology mixed with real human greed is the real blame... Now what politicians remind you of that? Most of them - Democrats.

    8. Bill Berggren  10/24/2008 04:59 AM Report

      Why hasn't this guy been fired already. All money given to the government should be for public works projects or the military. To give money to private banks has got to be fraud. We don't need loans, we need those that want loans to go broke. Goldman Saks and most banks need to go broke.

      Please tresury, give me money to keep my assets up, price transparency, and capital so I can provide a strong future for America. I will use the money to spend on american cars and houses to keep the economy going. Necessary for a strong market. Sestemic issue. Congress this is a crisis. Give Bill Berggren, 700 Billion to save the country and prevent failure. Without this we will create a healthy institution. You can do it quicker by wiring ASAp to save the country. Maybe I will need more to save the market, necessary critical steps.

      From bankrupcy will come new strong growth. Companies go bankrupt all the time.

    9. robert b.  10/24/2008 04:51 AM Report

      how can Rose conduct this interview without asking Paulson about his role in reducing the capital ratio requirements for the investment banks. This little noted regulatory change led to Paulson's firm, Goldman Sachs, Morgan Stanley, Lehman, et. al. increasing their leverage dramatically.

      The idea that this guy, who was intimately involved in laying the groundwork for this fiasco has the credibility to discuss this is disgusting. As others have said, he is one of the crooks. The guy made almost a $1 billion dollars at Goldman Sachs. Now he tells us how concerned he is about the American economy and how is out to protect the American people from a systematic collapse. Gee thanks, we face a systematic collapse because jerks like this were playing craps with the American financial system and made off with hundreds of millions of dollars. He got rich and the American people are left to pick up the pieces. The guy is a sociopath.

    10. RON  10/23/2008 02:30 PM Report

      John, we all wish that justice prevail but the history has shown us that masses can take abuse until certain level and there will be revolt against the corrupt system. It usually happens at one point when these crook ruling elite feels absolutely confident about the gullibility of masses when they get hit....

    11. John  10/23/2008 01:23 PM Report

      After they lobbied for it, in 2004 the SEC released 5 select firms from the net capital rule. Those investment banks increased their leverage 30 or 40 to 1. 3 of them then got Margin Calls. The history books will record who profited from the abuse and destroyed the country that gave them opportunity. "Sorry" now doesn't fix anything. A huge amount of suffering is to befall those who had no part in the crime. If justice isn't meted out by legal action in this world to these people, we can only pray that God will deal with them later.

    12. sam  10/23/2008 12:29 PM Report

      Wikipedia says of Goldman Sachs:

      "In 1929, [Goldman Sachs\ it launched the Goldman Sachs Trading Corp., a closed-end fund with characteristics similar to that of a Ponzi scheme. The fund failed as a result of the Stock Market Crash of 1929, hurting the firm's reputation for several years afterward."

      Imagine - Goldman Sachs involved in a ponzi scheme...and right before the start of the depression.

    13. Billy Bob  10/23/2008 11:57 AM Report

      Mr. Rose, you are the closest to a journalist we have on TV. You ask pointed questions with follow up & also, ask for expansion on your guest comments. Thanks!

      Sect. Paulson may be your friend & very intelligent, but he still has not released funds to the giant banks after about 3 weeks!

      Did you ask what his plan was when he demanded $700 Billion within 48 hrs. and wanted no oversight, & no accountability for how HE used the funds? Why demand $700 Billion for this emergency, surprise, revelation without a plan? How did HE arrive at the demanded amount? Paulson answered nothing!

      My wife & I have, for several years, been aware of the looming construction bust & the ARM mtgs., that require overtime or 2nd jobs to pay for, and will result in many loosing their homes. Also, the number of people getting by on plastic has stretched that rubber band very tight. We did not think beyond our State of Florida to the world! BUT, still!!! How can anyone that claims to be a professional in the financial world not have known of the problem? All knew, they just used OSTRICH ECONOMICS!

      Paulson does not sound like an action man, rather, a talker & thinker. The times now DEMAND some immediate action! Gen. Patraius planned & acted & we need action NOW! TODAY!! Paulson must go TODAY! He is in the WAY!

      To let this mess go without holding the FED esp. Greenspan, SEC, Congress, etc. ACCOUNTABLE will be a SIN against our country!

      Without jail time for some it will happen again--if not now. Why the delay in using the funds? Do 'they' think Mainstreet will lose interest & they can then do what they planned at the beginning?

      Come on Mr. R, take off the gloves! Keep up the good work!

      Respectfully,

      Billy Bob, Florida, where the DNP & Obama said our nomination-election votes could not count

    14. RON  10/23/2008 11:47 AM Report

      it's interesting more and more people are enlightend about this corrupt system and the crooks who run it. the stock market is the biggest scam of the history of mankind and still people believe into it. It's just Las Vegas in Manhatten and is run by the same gang of crimials. Most working people are so naive that theythink this whole thing is real. They don't know these fat cats are living off of the fruit of their labor.

      It's just an illusion but the more real it looks more people believe in it just like magic....

    15. buddy  10/23/2008 09:59 AM Report

      brothers & sisters, you either live with the wolfs feed them with sheeps, or all the world die together. face it!

    16. pkpdjh  10/23/2008 06:35 AM Report

      Does Paulson believe this stuff he's spewing?

      Does Charlie?

      How 'bout this line of questioning: "Mr. Paulson, you not only have a conflict of interest given your relationships with all of the banking elite but you've also been dead wrong on just about everything since taking this job. Why should taxpayers believe anything you say at this point?"

    17. Preston  10/23/2008 05:07 AM Report

      MUSH MUSH, Keep towing the PARTY line with those things over your eyes, you dumb MULE!

    18. Michael Freeman  10/23/2008 04:22 AM Report

      I wonder if Hank and Larry King, err, I mean Charlie Rose went out for pizza and beer after playing so much softball together...

      Charlie, you have spoken with Krugman, Rabini, G Mortgenson, etc... and all have pointed out the failures of Paulson, yet you fail to ask tough questions and worse yet, you allow these vague dishonest answers from "your friend"

      Step it up next time.

    19. mailman  10/23/2008 03:27 AM Report

      Paulson is a big wall street crook playing dice with the economy. He never once answered a question straight and skirted responsibility for the most part.

    20. Adam Carrol  10/23/2008 12:20 AM Report

      I just wanted to say that I have started watching Charlie about 2-3 months ago. I think he is one of the most underrated talk show hosts in the business. Charlie digs into the people he interviews, no matter the person, Charlie treats them all the same and tries his best to get down to the answers he wants. I really enjoy his humble, relaxed personality. You can tell he loves his job and you can tell he really cares about America. Charlie, from a young person fresh out of college from Southern Illinois University, I wish you the best and continue your great success! -Adam Carrol

    21. sam  10/22/2008 11:00 PM Report

      Wikipedia.com:

      Paulson's ill-advised words:

      "In August 2007, Secretary Paulson explained that U.S. subprime mortgage fallout remained largely contained due to the strongest global economy in decades.

      On July 20, 2008, after the failure of Indymac Bank, Paulson reassured the public by saying, “it's a safe banking system, a sound banking system. Our regulators are on top of it. This is a very manageable situation.”

      On August 10, 2008, Secretary Paulson told NBC’s Meet the Press that he had no plans to inject any capital into Fannie Mae or Freddie Mac.[21\ On September 7, 2008, both Fannie Mae and Freddie Mac went into conservatorship."

      At about 44:15, Charlie asked Paulson "What went wrong in America that led us here?" (paraphrased)

      Paulson did not answer but flooded Charlie with insignificant smokey, shifty words of generalities and/or subterfuge. Paulson is a spin meister.

      Paulson talks about the victims. Heck - we know who the victims are. Tell us who the (other) predators are!

      If we get rid of the predators there will be no victims.

    22. Rita  10/22/2008 10:04 PM Report

      Paulson is so obviously lying. For example, he now realizes letting Lehman goes was a mistake so he has to CYA by claiming he had no powers to act or make a decision regarding Lehman, only the Fed had that authority! YET,just a few days after Lehmans's bankruptcy, Paulson's former firm, Goldman Sachs, and Morgan Stanley were under attack and rapidly losing share value, then, magically, some how the government or the Fed had the authority to act or make a decision and allow Goldman and Morgan to switch to a holding bank to stem the bleeding-this is exactly what Lehman had asked to do months before but was told NO!

      Paulson instills NO confidence...

    23. Preston  10/22/2008 07:29 PM Report

      So he's the one who ran it through the paper shredder and used it for confetti? And turned around and said "wasn't me.".?... And then became the Treasury man to finish covering up the tracks from behind enemy lines, while sweet-talking and manipulating Bernanke and that other character into helping him do his bidding?... Is that what happened?... Oh that son of bitch.

    24. sam  10/22/2008 07:15 PM Report

      Wikipedia says Henry Paulson was part of the Nixon team during Watergate:

      "Paulson ...worked for the administration of U.S. President Richard Nixon, serving as assistant to John Ehrlichman from 1972 to 1973, during the events of the Watergate scandal for which Ehrlichman was convicted to a prison sentence."

      Paulson has worked for two U.S. Presidents: 1) Richard Nixon during the Watergate corruption period and 2) George W. Bush, in the subprime corruption cleanup period (after Paulson's firm - Goldman Sachs - sold the bogus subprime paper around the world, bringing in hundreds of billions of dollar for Paulson and his friends).

      Paulson seems to be attraced to hot spots, even where there is criminality.

      One can only wonder why the media has not yet vetted Paulson.

    25. Dav Lev  10/22/2008 06:00 PM Report

      The government giveth and the government taketh away. Let me explain. Corporations pay the highest tax rate (behind Japan) in the world. Yet Obama decrys McCain's proposal to reduce taxes to 25% maximum. What Obama is forgetting is that corporations don't pay these taxes. Who pays: customers (higher prices), stock and bond holders ( dividends and interest) and employees (less pay). BTW, corporations are taxed twice..first on profits (if any) then on the dividends (by holders of those bonds and stock). Or as Sarah Palin says, "Gotcha".

      Let's get to giveth away now. When a property owner makes a mortgage payment, that payment of interest is deducted on one's state and federal tax return, right! He (she) benefits, the gov't loses. Now, these geniuses in the Treasury and Fed, as well as the bankers, want to give the home owners another break, by buying the "toxic" mortgages or having these reduced (possibly in bankruptcy) or readjustments. Soooo..the government should really do the following: determine the tax benefits since purchase, and put liens on the property aided. When the property is sold, or later refinanced, the gov't has first priority to the proceeds. But I won't hold my breath. At any rate, who is screwed, the honest folk who bought within their means and saved for that rainy day. Also, hows about taking off the tax exemption of 250,000 and 500,000.

    26. Shaft  10/22/2008 05:59 PM Report

      I wanted to hear the man responsible to the hand out an amount of money, which would take me a lifetime to count let alone to spend. Somehow I feel good to hear Mr. Paulson tell us the steps he took and why he took'em. Secretary Paulson is a good sounding man, although there are twice as much argumentative points that can be made to illustrate he is not but the bold steps taken along with the leadership of the President must be commended. I must admit that I never had good things to say other than criticize this administration almost anytime I thought I have a point to make, but this time I was knocked off by the speed and accuracy of the pre-emptive attack he responded on the faltering economy.

      _____________________________________________________________________________________________________ _________________________________________________________________

      This is a step that would defy all kinds of laws and theories of economic philosophy by any stretch of the imagination, but this administration has taken a necessary step to avert much worse chaos, at the expense and anger to millions of taxpayers' dismay. However, that is what leadership comes along with, take charge and do the right thing no matter how many people cry foul, to that end I salute this adminstration. Its like the saying, just because you know your baby will cry does not mean you won't get him/her vaccinated for a dangerous ailment lurking around. Although committing a $700-BILLION$ bailout money out of the tax payer pocket does not seem right, especially if the rescue is intended to bailout the very people that endangered us all is very painful to watch, but given the circumstances its essential. I think the $300-BILLION$ additional lubrication is also necessary to help in the recovery effort. From what I hear all those bankers and financial insiders I am glad that the problem has been fully contained. However, like Babe Ruth would say, 'it ain't over until it's over.' I am sure that the next president will have enough time to focus on Iraq and Afganistan.

      _____________________________________________________________________________________________________ _________________________________________________________________

      Although, I am not sure its possible to ask but if its not too much trouble can you please bring some of the major bankers Secretary Paulson spoke to in a closed meeting. While we all are attaintive for more economic discussions it would be nice to have at least few of the bank CEOs come to the Charlie Rose show to give us their take. Mr. Rose, I reckon that you are from North Carolina, can you please bring your home state bank guru (Ken Lewis) Bank of America CEO, and his counter part from Goldman Sachs of Lloyd Blankfein. Bring them guys to the same table and let them duke it out, or state their view of the economic condition and what their respective banks are doing to alleviate the problem. Thanks again Mr. Rose, you have been extremely helpful feeding us the information needed to digest the daily fear we are experiencing. While you are at it, please request a chat with Federal Reserve Chairman Ben Bernanke so he can give us what his office is considering at the moment and the second stimulus package set out to be requested.

    27. Preston  10/22/2008 05:16 PM Report

      When the baby stubs his toe on the table leg, hit the table for him or her and yell "Bad Table!", it always makes them feel better.

    28. Bert Berat  10/22/2008 03:29 PM Report

      Mr Paulson is the architect of the upside down bail out. Indemnify the perpetrators, make the victims pay the price. No surprise there.

      As long as Mr. Sacks, uh, Paulson continues trying to prolong the "Gilded Age 2" era we will slide down towards the "Great Depression 2" . This is not over by a long shot. And this is no longer about the wealth of the top 2 %. This is about the rest of us now. The sooner that is admitted, the sooner we can start digging ourselves out of this crater they made for us.

      Bert Berat

    29. MotherLodeBeth  10/22/2008 02:47 PM Report

      I think the financial elite like eilte folks in all areas, think if they give it time the average folks will move on to a new topic and once again the adage that 'crime pays' will be proven to be true. I still think if this happened in China we would have seen a fair number of executions by now

    30. Preston  10/22/2008 10:29 AM Report

      There are some BANKERS who KNEW all along, what was happening, and they encouraged it, and they are PROFITing from it. All because, they are the keepers of the FLAME... Mr. Paulson, regardless if he's guilty or not, has come out of his cave and is trying to repair the ship of fools. Because if the ship really goes down, it's going to take all the paper, gold, oil, sunlight and air with it.

    31. Alan  10/22/2008 10:14 AM Report

      Charlie, why waste time interviewing someone who does not want to answer any questions?...............................................If a person does not wish to be forthright and direct in his responses I am most suspicious of that person.................

      ...............................Perhaps the biggest take away one can have from this interview is that there are many murky things going on behind the scenes.

    32. Preston  10/22/2008 09:13 AM Report

      I'm still thinking the BANKERS, regardless of ethnicity. Somewhere, there is an Osama Bin Laden hiding in a mountain of money.

    33. Mark  10/22/2008 09:10 AM Report

      Is this the way the plan is supposed to work? - The "Base of the Pyramid" is the mortgage-holder, and they are not being helped. So the transfer of taxpayer money is to replace the mortgage loan money to banks that would otherwise be paid by those who are defaulting. If that's the case, why not give the money directly to those who aren't paying their loans so they can stay in their house too?

    34. Elden Morrison  10/22/2008 08:58 AM Report

      In his opening remarks Mr Rose mentioned that Mr. Paulson was "a friend of mine". He spent the next hour proving it. Not a single reference to Mr. Paulsons conflict of interest which has been widely reported by others?

    35. Preston  10/22/2008 08:13 AM Report

      Or God.

    36. Preston  10/22/2008 08:12 AM Report

      It may come down to offering the Gods a sacrifice.

    37. Preston  10/22/2008 08:00 AM Report

      Capitalism will die when the last human being on earth dies. It may hide behind other bullshit labels, it will always live because it IS human nature. The best thing we can do is find ways to motivate people that are in line and go with the flow of Capitalism i.e. human nature. Instead of the liberal bullshitters who are always trying to reinvent the wheel and show us the moon.

    38. Ricardo C. Amaral  10/22/2008 07:50 AM Report

      Part 2 of 2 - It is obvious that no one can trust what is going on right now here in the US because they are not being honest and are not putting the spotlight in the massive amount of losses that are under way and will decimate companies earning and translate in massive banking losses.

      In Brazil the companies are being more transparent and they have been announcing massive losses related to derivatives such as Sadia, a food processor, Aracruz, a paper and pulp producer, and Votorantim, an industrial conglomerate, have announced heavy losses. Votorantim reported close to $ 1 billion dollars in derivative losses, and Sadia reported $ 410 million dollars in losses related to derivatives and Lehman Brothers.

      An article published by the Financial Times – UK, on October 21, 2008 regarding the current losses being reported by Brazilian companies said: “The government fears that as many as 250 other companies may be in similar difficulties.”

      ________________________________________________________________________

      The Brazilian companies and the Brazilian government are being honest and they are absorbing the losses, and they are trying to fix the entire financial system in Brazil.

      If the Brazilian economy has more than 250 companies that are in similar difficulties such as Sadia, and Votorantim, and in a financial market 100 times more conservative than the United States, then just imagine the humongous amount of losses that are going to affect the earnings of American companies when they start reporting these massive losses related to the derivatives market nuclear explosion that is underway.

      The only banks that are going to continue lending at this time before all the companies come out clean and report these massive losses related to the derivatives market are the ones that are badly managed and probably the banks that will end up out of business.

      ________________________________________________________________________

      Only fools would trust the environment that we have today in the financial markets in the United States, and the US stock market should continue to go down until the system got ride off all these massive losses that are coming.

      What is amazing to me is that some very smart people have not grasped that the actual adjusted GDP of the US economy today is closer to US$ 10 trillion dollars and not the wishful thinking number that they dream up every month in Washington D.C. of around US$ 14 trillion dollars. The actual US GDP is about 40 percent lower than the figure that most people use on their calculations, and when people are making plans based on a mirage no wonder the outcome of their projects end up nowhere.

      The US has become the world of illusion, with the US government reporting worthless information about unemployment (the real unemployment figures in the US economy) and US GDP statistics.

      ________________________________________________________________________

      .

    39. Ricardo C. Amaral  10/22/2008 07:49 AM Report

      Part 1 of 2 - Charlie, your friend Henry Paulson has been a big disappointment to all of us as the US Treasury Secretary, and basically he is Pathetic.

      All they have been doing is overreact after the situation was getting out of hand. They just have been putting out one fire after another and nothing else.

      The entire program last night was about damage control. When you asked him about how they decided to invest money in the major banks – the reason he did not answer you immediately is because Gordon Brown in England took the leadership away from the United States and he started implementing policies in Europe that the United States just had to go along and do something similar, such as nationalizing the major banks in the United States.

      ________________________________________________________________________

      For all practical purposes the American type of capitalism today you can consider it as dead as the old communism of the Soviet Union. The entire world understands that and only Americans still have illusions that their capitalism system has not been damaged beyond repair.

      The Argentina economy bankruptcy around 2002 became the symbol of if a country adopts the economic policies prescribed by the United States of privatization and cut throat capitalism then your country end up in a total financial meltdown.

      Now the US economy reconfirmed that same outcome, and the US government had to nationalize many areas of its economy to prevent it from a total meltdown. And the nationalization process is not done as yet, since the US government will be forced to nationalize many more companies including: today is the money market mutual funds and tomorrow would be the automobile industry, and possibly the airlines. And just God knows what else.

      ________________________________________________________________________

      Henry Paulson is do delusional and so lost right now that the poor guy thinks that he is going to change the mind of the rest of the world about the demise of the capitalist system in the United States.

      We already can see immediate reactions taking place such as in Argentina where yesterday the president of that country nationalized the private pension system of that country.

      When Henry Paulson started talking about how he is setting up for his replacement for a smooth transition that reminds me of the article published last Sunday by The New York Times – Washington Sachs – an article doing a complete expose of how Goldman Sachs took over the US Treasury with its Network of Goldman Sachs alumnus.

      You can read the article and the comments about “The Guys From ‘Government Sachs’” at the following website: http://www.elitetrader.com/vb/showthread.php?s=&threadid=131887&perpage=6&pagenumber=7

      ________________________________________________________________________

      Another article published by The New York Times on October 21, 2008 - This Bailout Does not Pay Dividends – by 2 Harvard University economics professors – they refer to Henry Paulson in that article as the Godfather – like in the Mafia.

      The article on the NYT talks about how a chunk of this investment by the US government in the major banks is going to end up as dividends to shareholders of these banks.

      I understand that Henry Paulson and Ben Bernanke and others are doing their best regarding damage control right now.

      Paulson was talking about how the banking system has started lending to one another now that the US government is giving US government guarantees to every thing in sight.

      The only problem is that the banking system is going to be hit with a massive amount of losses that are in the pipeline and probably will put a lot of banks out of business. Even some of the largest banks in the United States because of the derivatives losses that are all over the place.

      ________________________________________________________________________

      .

    40. Preston  10/22/2008 06:12 AM Report

      Mr. Paulson looks like he's suffering from post traumatic shell shock disorder and can't wait to get off the battlefield. Not very confidence inspiring... I don't think Stonewall Jackson would uh done it that a way. No.------------ But! We must EMBARK! We simply MUST!... Woof! Woof! Woof!

    41. TABS  10/22/2008 04:46 AM Report

      Here is something to ponder. Johnny Carson as he left the Tonight Shows said, "When I started on this show in 1962 there were 3 Billion people in the world, tonight as I leave you (1992) there are 6 Billion people in the world." In less than a century the world population will have trebled (3B to 9B). For as long as the world population increases the world will have an inflationary environment as there will be an ever increasing need for goods and services. There will also be increasing environmental degradation to meet the life needs of these people. These are facts of life. At some point in time this planet will not be able to sustain the number of people on it, and there will be a mass die off from one cause or another.

    42. TABS  10/22/2008 04:20 AM Report

      Let me say THANK YOU to Mr Paulson and to Mr Bernanke. No one could have done a better job then these two gentlemen did in stemming the tide of collapse. Their actions were not perfect, however let the man who could have done a better job throw the first stone.

      ..................................................................................................... ................................................................

      Secondly with regards to Mr Roses interview, one has to understand that the purpose of the interview was not to provide a great deal of detail, but to give a broad overview of what happened and its causes.Mr Rose does have a sophisticated audience that could have assimilated a bit more detail, however the interview was only for an hour and Mr Paulson has other commitments to honor. Having said that Mr Rose did conduct a good interview that was on point.

      ..................................................................................................... ....................................................................

      One criticism of Mr Paulson and Mr Bernanke is why did they not model the nuclear implosion of the Credit Markets back in March of 2008 after Bear Stearn's, and come up with a series of plans for the different scenarios? That way they would have ahead of the curve and been able to have plans ready to plug in if the need should arise.

      ..................................................................................................... .............................................................

      Going forward it does seem that an imminent collapse of the US and World economies has been averted. However one wonders if the systemic problems that the current plans of action cause won't come back and haunt the Global economy a few years down the road? Or will it take a deft hand at the tiller of the ship of state (non ideological) to avert any further fallout. It does seem an imperative truth that our fate is in our hands and will be determined by the solutions that we come up with regarding our systemic and economic problems.

    43. Amilius  10/22/2008 04:00 AM Report

      'Confidence' becomes the 'con' game. Mr. Paulson and Mr. Rose seem intent on conning their viewers into believing recent actions are justified. I don't think it worked as they intended. It's an amazing thing about gracious choices-- they don't warrant justifications. No number of Charlie Rose 'buddy' chats will forestall the instructive consequences of ungracious choices made in the current financial machinations of Mr. Paulson and his bosses.

    44. DPG  10/22/2008 03:36 AM Report

      I completely agree with Donald Bernes' comments. During the interview Henry Paulson kept talking about confidence [in the financial system\. People have confidence in the people behind financial institutions. The leaders of many of our financial institutions are seen a arrogant, selfish, incompetent, and unethical. America needs to strip these robber barons of their ill gotten gains and hold the charlatans of Wall street truly accountable.

    45. Donald Bernes  10/22/2008 02:34 AM Report

      I wateched the Paulson interview hoping to be informed. If his rambling non answers to your questions are any indication of our leadership in this financial mess we are in more trouble than I thought. The only high point to the entire interview was watching you attempting to pull information out of him. Nice try..

      What a waste of an hour...An interesting question for Mr. Paulson would have touched on Wall Street greed...the part that it might have played in this fiasco. Coming from Wall Street he might have first hand knowledge of this subject.

    46. sock puppet  10/22/2008 02:23 AM Report

      Mark - You're evil. "Paulson Cheney Capital Management," I love it. That is until I realize it probably exists in some similar form. They will be recruiting you. Considered politics?

    47. Mark  10/22/2008 02:12 AM Report

      Fade to black.

      Paulson: "Charlie, if you ever again bushwhack me with a question about staying in this lousy Treasury job, I'll never let you set foot on my Hamptons compound again. Further I'll see to it that every major contribution pulls funding from your show. And I'll have the IRS start an immediate audit of your offshore tax records. There's no way in hell I'd stay in this job. I've see my enemy's books. Now, I can crush all of them with my new sovereign hedge wealth fund, Paulson Cheney Capital Management. Once Dick cashes in his few remaining options at Haliburton (not the ones he's told the IRS about all these years), we'll crush Carlyle and Blackstone and become the new Big Swing Dicks on the Street. We'll eviscerate those fools at Goldie who thought they could survive without me. We will rule the world."

      Rose: "Yes, Henry, please forgive me."

    48. sock puppet  10/22/2008 02:04 AM Report

      Krystyna Wise - damn good point. The poor bankers whose job is to handle money couldn't (prudently) handle the rain of money from offshore. (They forgot to ask me.) Now we're ponying up $0.7 trillion of our money for a second chance? The definition of insanity is what again? -----------------------------------------------> Paulson's a cipher. Obama's chummy with his ilk, a la Larry Sommers, Robert Rubin, Citigroup et al. Bettin Paulson's mightily disappointed that his original three page proposal wasn't approved where he basically asked for the ONLY set of keys to the treasury. CHUTZPAH T-CORNPONE!

    49. debbie  10/22/2008 01:47 AM Report

      i listened to the show i don't think i heard him say anything about the credit card scams. how can credit cards companies give out the credit to people on SS only..!!! draining seniors of their life savings trying to make min. payments! MIN. payments almost the full amount of their SS check!!!!

      who is going to bail out thesse people???? they take out money out of CD's to make payments and pay off credit cards and get hit with high penatliesd. how are people with ALZ and dementia to keep out of trouble with credit cards when they keep just handing them out.! i understand that there is some kind of help threw elder lawyers how are people with

      ALZ and dementica to know this credit card companys prey on seniors and college students!

      $2,000 a month min payments with very little going to the princple! what can they live on,, i have listened again and nothing about either scamms. bank of America was the fastest to make a settelment everyother bank took months some refused to settle even after months of me contancting the credit cards,.

      mortage companies not including property taxes and home insurances in the amount of the house payments so people will think they can afford they payments is just another scam to close the deal...

    50. charlies sheep  10/22/2008 01:41 AM Report

      WELL-- NO QUESTIONS ABOUT WHERE THE ATTORNEY GENERAL IS AND HIS ROLE IN CRIMINAL PROSECUTION OF ALL PARTIES--TO AND--FOR THE CASE BEFORE THE PEOPLE-I.E.- THE RAPE OF THE TREASURY AND DEFENSE OF THE PUBLIC PURSE--SO WHY DID YOU C.R. NOT ASK THIS--OR DOES THIS BENIGN QUESTION--YAWN--BORE--THE WELL HEELED --INDEED, LAWYERED PAST--OF SOMEONE WHO MIGHT GIVE A DAMN--AN HOUR DEVOTED TO THIS TOPIC IS --HEREBY--REQUESTED ON BEHALF OF ALL WHO WILL PAY--- WITHOUT BENEFIT OF LAW--DRIVE ON