Stock crash result of "let them fail" conservative move


	Stock crash result of "let them fail" conservative move

masbury

3-13-2009 6:17 PM

366 views

tags:

paulson, conservatism, economy

masbury says:

Treasury Secretary Paulson was pressured by conservatives to let Lehman Brothers fail. He refused to help them. "Within 24 hours, the stock market crashed, and credit markets around the world froze." Paulson was "thunderstruck."

2 Comments |

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3-14-2009 4:00 AM

doodleicious

yes and i wonder why he did this actually-as in did he see the big picture? or just make a terrible mistake?

3-14-2009 6:22 PM

Anomaly100

Perhaps I'm paranoid, but I think a lot of these guys knew the big picture. Hey, some of the bank idiots were going on Spa trips right before. What the hell was that! Their behavior shows that my paranoia, though possibly nutty has hell, is not involved here. Whew! Oh, wait....

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<div style="margin: 12px 0px; font-family: arial; color: #333333; background: #ffffff; border: solid 4px #e5e5e5; width: 100%; clear: left;"><div class="CM_CTB_Content_Wrap" style="margin: 0px; padding: 0px;background-color: #ffffff;"><div style="border-bottom: solid 1px #dcdcdc; white-space: nowrap; margin-bottom: 8px; background-color: #eeeeee ;background-image: url(http://clipmarks.com/images/source-bg.gif); background-repeat: repeat-x; height: 24px; line-height: 24px; vertical-align: middle; padding-bottom: 4px; color: #666666; font-size: 10px;" ><a href="http://clipmarks.com/clip-to-blog/" title="see clips that are hot right now"><img src="http://content.clipmarks.com/blog_embed/7590c2f1-db1b-4381-b8b1-395746be2ab5/0BC6FBA5-B040-47F5-87A6-92300EBB7AAD/" alt="" width="19" height="19" border="0" style="vertical-align: middle; margin: 0px 4px; display: inline; border: none; float:none;" /></a>clipped from <a title="http://www.pbs.org/wgbh/pages/frontline/meltdown/view/" href="http://www.pbs.org/wgbh/pages/frontline/meltdown/view/" style="font-size: 11px;">www.pbs.org</a></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.pbs.org/wgbh/pages/frontline/meltdown/view/">in September 2008, another investment bank, Lehman Brothers, was on the brink of collapse. Once again, there were calls for Bernanke and Paulson to bail out the Wall Street giant. But Paulson was under intense political pressure from conservative Republicans in Washington to invoke moral hazard and let the company fail.</blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.pbs.org/wgbh/pages/frontline/meltdown/view/">Paulson pushed Lehman's CEO Dick Fuld to find a buyer</blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.pbs.org/wgbh/pages/frontline/meltdown/view/">But no company would buy Lehman unless the government offered a deal similar to the one Bear Stearns had received. Paulson refused, and Lehman Brothers declared bankruptcy.</blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.pbs.org/wgbh/pages/frontline/meltdown/view/">FRONTLINE then chronicles <A href="http://www.pbs.org/wgbh/pages/frontline/meltdown/view/../themes/lehman.html">the disaster that followed</A>. Within 24 hours, the stock market crashed, and credit markets around the world froze. "We're no longer talking about mortgages," says economist Gertler. "We're talking about car loans, loans to small businesses, commercial paper borrowing by large banks</blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.pbs.org/wgbh/pages/frontline/meltdown/view/">Paulson was thunderstruck. "This is the utter nightmare of an economic policy-maker,"</blockquote><div style="height: 2px; font-size: 2px; background: #dcdcdc; border-bottom: solid 1px #f5f5f5; margin: 2px 4px;"></div><blockquote style="text-align: left; padding: 0px 8px; margin: 4px 0px 8px 0px; background: transparent; border: none;" cite="http://www.pbs.org/wgbh/pages/frontline/meltdown/view/">"You may have just made the decision that destroyed the world</blockquote></div><div style="margin: 0px 6px 6px 4px;"><table style="font-size: 11px;border-spacing: 0px;padding: 0px;" cellpadding="0" cellspacing="0" width="100%"><tr><td style="background:transparent;border-width:0px;padding:0px;">&nbsp;</td><td align="right" style="background:transparent;border-width:0px;padding:0px;width:107px" width="107"><a href="http://clipmarks.com/share/0BC6FBA5-B040-47F5-87A6-92300EBB7AAD/blog/" title="blog or email this clip"><img src="http://content7.clipmarks.com/images/c2b-foot.png" border="0" alt="blog it" width="107" height="17" style="border-width:0px;padding:0px;margin:0px;" /></a></td></tr></table></div></div>

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