Text: Henry Paulson Testimony before House Financial Services Committee | November 18, 2008

(Source: U.S. Treasury Department)

Click this link for PDF of Sec. Paulson’s Testimony

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Transcript: President-Elect Barack Obama and Michelle Obama on ‘60 Minutes’ | November 16

November 16, 2008 by Pelikan · 3 Comments
Filed under: Barack Obama, Obama Transition 

(Source: CBS News)

(Narration) Steve Kroft:Since Barack Obama was elected the 44th president of the United States 12 days ago, he has largely remained out of sight, getting high-level government briefings and conferring with his transition team. But he surfaced on Friday afternoon in Chicago, alongside his wife Michelle to give 60 Minutes his first post-election interview.

It covers a wide range of subjects including the economy, the ailing automobile industry, the government’s $700 billion bailout program, their visit to the White House, the emotions of election night and the quest for a family dog. You’ll hear all of it. But we begin with the president-elect and his thoughts about the new job.

Steve Kroft: So here we are.

President-elect Barack Obama: Here we are.

Kroft: How’s your life changed in the last ten days?

Mr. Obama: Well, I tell you what, there seem to be more people hovering around me. That’s for sure. And, on the other hand, I’m sleeping in my own bed over the last ten days, which is quite a treat. Michelle always wakes up earlier than I do. So listen to her roaming around and having the girls come in and, you know, jump in your bed. It’s a great feeling. Yeah. Read more

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Bank Failures Surging in 2008

The last couple of times I’ve noticed that banks are failing it’s always on Saturday, as the FDIC quietly swoops in and takes over on a Friday afternoon.  It seems like it’s happening more and more often so I took a look at the FDIC’s website.  There is a spike this year, we’ve had 19 FDIC insured banks fail this year.  The record I found only went back to 2000, there is a chart below.  41% of the bank failures in the last eight years have occurred this year.  33% of U.S. bank failures since 2000 have happened since July of this year. 

Security Pacific Bank of Los Angeles and Franklin Bank of Houston, Texas became casulties on Friday.  I’m looking at these numbers, the jobless rate, the housing bubble, Ford’s and GM’s woes - the list goes on - and I’m thinking that all Barney Frank, George Bush and Henry Paulson have done is throw $700 billion at Wall Street. 

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The U.S. Government Lie: $700 Billion Bailout

When the U.S. government begins renaming terrible things like killing civilians with misplaced bombs “collateral damage,” we should all know we’re in trouble. When the media doesn’t challenge this government gobbledy-gook but rather adopts it, we’re in bigger trouble. The de-sensitizing has begun. Read more

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Warren Buffet: Bailout Goodhousekeeping Seal of Approval?

A CNBC pundit just told America that Warren Buffett is the Bailout’s ‘Good Housekeeping Seal of Approval’ for making deals during the “crisis.”  Buffett made a new deal today with GEHe’s already made this deal since Paulson’s bid to become King Shit of Economic Mountain. 

Buffett does support the Bailout Bill, but as for these deals - Buffett’s just doing what Warren does best - he’s finding the value and investing.  He’ll make out like a bandit, only he’s the sort of investor that reaps honest profit.

Still not sold on the bailout …

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What Crisis? Dow Posts Third Biggest Gain Ever - Most Americans Don’t See the Sky Falling

Look, I know the stock market isn’t “the economy.”  But days like this will make it all the more difficult for Washington’s politicians to convince voters that $700 billion should be staked to bailout Wall Street’s financiers.

I was in a meeting today previewing a presentation I developed to communicate with a group of people over a thorny issue.  At one point, a colleague said to me, “Pelikan, you’re gonna like this.”

“Are we trying to educate or notify? This first part is good - you’re educating, but then you move to notifying.”

My colleague knew I’d like that feedback because she said she heard a political pundit using the same language to describe how the Bush Administration failed to get public support for the bailout.

I don’t know where she heard that analysis, but it’s good.  I still have yet to discuss this whole “crisis” with more than a couple of people who are four-square behind it. 

I think that pundit was right.  Henry Paulson said just in the last couple of months that the issues in the credit and banking system were “manageable.”  Then all of a sudden there’s a plan to make him king of the financial mountain.

There’s another reason why regular folks are skeptical.  It’s the rush.  The Bush Administration has a very poor record when it comes to public policy decisions hastily rammed down their collective throat:

  1. WMD & Al-Qaeda running rampant in Iraq - There were no WMD and Al-Qaeda didn’t exist in Iraq until we destabilized the country.
  2. Patriot Act - Constitution shredded
  3. U.S. Official Torture Policy - Thanks to Dick Cheney, David Addington and John Yoo, Constitution shredded, treaties pissed on, FBI and Dept of Defense ignored, innocent people tortured along with bad guys who were tortured and gave erroneous information, Amerian moral authority erroded.

Now, 30 days before a presidential election, with less than a week to consider the problem, the Bush Administration wants to fork over $700 billion to investment bankers?

This can’t be good.

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John McCain and the Bailout

The truth is, neither Sen. John McCain nor Sen. Barack Obama had any natural affinity to add value to the work of fashioning the bill for the proposed $700 billion bailout of Wall Street. What each did have was the opportunity, as titular heads of their parties, to take the temperature down, reassure and convince holdouts, and stay out of the way.

What wasn’t needed at such a serious time in our nation’s financial history was for either one of them to turn Washington into one more campaign stop. That’s what McCain did.

Today, after the House defeated the bailout bill, McCain released a statement, which said, in part:

I returned to Washington last week to work on a bipartisan rescue plan. It was the only plan at that time on the table but lacked enough support to pass. It also lacked sufficient accountability and transparency to justify expenditure of the taxpayers’ money.

What a pompous ass. Guess what, John? Apparently the plan “lacked enough support to pass” after you left Washington as well. Since well over 100 Republicans voted against the bill, either McCain didn’t work hard enough or he still has a problem with conservatives. Read more

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Bailout DOA on U.S. House Floor

September 29, 2008 by Pelikan · 1 Comment
Filed under: U.S. Economy, U.S. Financial Crisis 

American People - 1  Fat Cats - 0

Their Profits are Theirs, For Awhile, Their Losses Are As Well

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Monday Morning Bailout Blues

World Markets

U.S. Bailout News

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Video: Henry Paulson on ‘60 Minutes’ September 28

September 29, 2008 by Pelikan · 1 Comment
Filed under: U.S. Economy, U.S. Financial Crisis 


Watch CBS Videos Online

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Bailout Deal Bullet Points & Coverage – Sunday A.M.

September 28, 2008 by Pelikan · Leave a Comment
Filed under: U.S. Congress, U.S. Economy, U.S. Financial Crisis 

Bush Administration and Congressional officials came to terms on the proposed $700 billion Wall Street bailout early Sunday morning reports the New York Times, Washington Post, and other media outlets. Find clips of the stories this morning after the bullet points of the deal’s terms. The media are reporting that Congressional staff worked through the early morning hours of Sunday and will continue to work until the deal is in bill form. Votes in both houses of Congress are expected late Sunday or early Monday.

Highpoints of Bailout Deal

  • The $700 billion would not be released in its entirety at once. Funds would be made available to Treasury in a first installment of $250 billion, a second installment of $100 billion, and a final installment of $350 billion. Congress would have the right of refusal at each step of the process.
  • Pay limits will be put in place for executives of companies who make use of the government bailout.
  • A Congressional oversight panel will be empowered to oversee Administration and Treasury implementation of the bailout.
  • In some cases, the federal government will receive an equity stake in companies participating in the bailout.
  • Conflict-of-interest rules will be implemented for firms who contract to help Treasury run the bailout.

Bailout News

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Financial Crisis News Update – Thursday Late Night

September 25, 2008 by Pelikan · Leave a Comment
Filed under: U.S. Economy, U.S. Financial Crisis 

Deal Now Stalled on Capitol Hill

WaMu Fails

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U.S. Senate Committee on Banking, Housing & Urban Affairs - Witness Testimony - Paulson, Bernanke, Cox, Dodd - U.S. Financial Crisis - $700 Billion Wall Street Bailout

September 23, 2008 by Pelikan · 2 Comments
Filed under: U.S. Congress, U.S. Economy, U.S. Financial Crisis 

Below are links to prepared remarks by Senate Banking Chairman Chris Dodd, D-CT, Treasury Secretary Henry Paulson, Federal Reserve Chairman Ben Bernanke, and SEC Chairman Chris Cox.  Opening remarks actually delivered before the committee were abbreviated, what follows is the testimony prepared for delivery which will be inserted into the Congressional Record.

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Meltdown Hoedown – Markets, Economic Crisis News Roundup

September 23, 2008 by Pelikan · Leave a Comment
Filed under: U.S. Economy, U.S. Financial Crisis 

Tuesday A.M.


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U.S. Treasury Department Fact Sheet on Proposed Purchase of Troubled Assets

September 22, 2008 by Pelikan · 2 Comments
Filed under: U.S. Economy 

(Source: U.S. Dept of Treasury)

September 20, 2008
hp-1150

FACT SHEET:
Proposed Treasury Authority to Purchase Troubled Assets

Washington –  The Treasury Department has submitted legislation to the Congress requesting authority to purchase troubled assets from financial institutions in order to promote market stability, and help protect American families and the US economy. This program is intended to fundamentally and comprehensively address the root cause of our financial system’s stresses by removing distressed assets from the financial system. When the financial system works as it should, money and capital flow to and from households and businesses to pay for home loans, school loans and investments that create jobs.  As illiquid mortgage assets block the system, the clogging of our financial markets has the potential to significantly damage our financial system and our economy, undermining job creation and income growth.  The following description reflects Treasury’s proposal as of Saturday afternoon. Read more

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