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The Economic Equivalent Of War [Hank Paulson has a book out]
Forbes ^ | 02.16.10, 05:55 PM EST | Robert Lenzner

Posted on 02/16/2010 5:08:43 PM PST by 1rudeboy

Hank Paulson tells how he brought us back from the brink of financial collapse by bending the rules of the free market.

Stop sniping at Hank Paulson. The former Treasury Secretary saved the day by overcoming his predilection for free market capitalism and he didn't do it to save Goldman Sachs, his and my alma mater. His pragmatic boldness helped save the capitalist system from a possible total collapse.

Read On The Brink, Inside the Race to Stop the Collapse of the Global Financial System (Business Plus, $28.99) and get Paulson's take on the whole affair. The facts are these: In the six months between March and September of 2008, eight major financial institutions--Bear Stearns, IndyMac, Fannie Mae ( FNM - news - people ), Freddie Mac ( FRE - news - people ), Lehman Brothers ( LEHMQ - news - people ), AIG ( AIG - news - people ), Wash Mutual and Wachovia--went under or had to be rescued in costly fashion. Citigroup ( C - news - people ) was insolvent; Bank of America ( BAC - news - people ), Goldman Sachs ( GS - news - people ), and Morgan Stanley ( MS - news - people ) were on the edge for a while.

I was mentally exhausted trying to keep straight these cumulative crises all these many months later. There was no time to catch a breath.

(Excerpt) Read more at forbes.com ...


TOPICS: Business/Economy; Crime/Corruption; Front Page News; Government
KEYWORDS: bookdeals; goldmansachs; hankpaulson; lenzner; onthebrink; paulson; robertlenzner

1 posted on 02/16/2010 5:08:43 PM PST by 1rudeboy
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To: Toddsterpatriot; Mase; expat_panama

Another book to add to the reading pile.


2 posted on 02/16/2010 5:09:45 PM PST by 1rudeboy
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To: 1rudeboy
and he didn't do it to save Goldman Sachs, his and my alma mater

Little conflict of interest here?

3 posted on 02/16/2010 5:10:37 PM PST by Cicero (Marcus Tullius)
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To: Cicero

Not if he discloses it, and he just did.


4 posted on 02/16/2010 5:11:16 PM PST by 1rudeboy
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To: 1rudeboy

Soon this book will be sold at the Dollar Store.


5 posted on 02/16/2010 5:13:59 PM PST by Bob Eimiller (appeasement "it's the idea that if you feed the alligator he will eat you last." Winston Churchill)
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To: Bob Eimiller

>Soon this book will be sold at the Dollar Store.

Soon the number of Dollars to buy something at the Dollar Store will be 50.... [/cynic]


6 posted on 02/16/2010 5:15:05 PM PST by OneWingedShark (Q: Why am I here? A: To do Justly, to love mercy, and to walk humbly with my God.)
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To: Bob Eimiller
It's the only way I will be able to afford it. :)
I'll check the library.
7 posted on 02/16/2010 5:15:09 PM PST by 1rudeboy
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To: Cicero

A little legacy building here. We won’t know for a while whether his actions worked or not.


8 posted on 02/16/2010 5:17:49 PM PST by madameguinot (Our Father's God to Thee, Author of Liberty)
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To: 1rudeboy

>> Goldman Sachs... his and my alma mater

That definitely establishes your credibility with me, Bob.


9 posted on 02/16/2010 5:18:55 PM PST by Nervous Tick (Eat more spinach! Make Green Jobs for America!)
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To: 1rudeboy

How about “the economic equivalent of gangrene.”


10 posted on 02/16/2010 5:20:02 PM PST by Steely Tom (Obama goes on long after the thrill of Obama is gone)
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To: 1rudeboy

Only if you believe him. I don’t. The fact is he pulled a trillion dollar bait and switch on the American taxpayers. He proposed a plan to buy “troubled assets” to take them off the books, insisted that he needed to have the cash immedieately, and have a completely free hand to spend the money any way he chose. Then once he had it, he completely changed the plan within days. Why should anybody believe his self-serving book of lies, let alone spend money to read it?


11 posted on 02/16/2010 5:21:06 PM PST by Hugin (Sarah Palin,: accept no substitutes!)
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To: Nervous Tick

“I ain’t one fer no fancy book-lernin.’”


12 posted on 02/16/2010 5:21:43 PM PST by 1rudeboy
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To: 1rudeboy; onyx; hoosiermama; STARWISE; Liz; kcvl

“his and my alma mater”

There’s an unbiased review.


13 posted on 02/16/2010 5:22:19 PM PST by maggief
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To: Hugin
Why should anybody believe his self-serving book of lies, let alone spend money to read it?

Oh, I don't know . . . maybe because someone will actually be able to determine the truth, instead of listening to self-serving knee-jerk reactions about Goldman Sachs?

(Lots of them, here on this thread).

14 posted on 02/16/2010 5:27:12 PM PST by 1rudeboy
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To: 1rudeboy

I seem to remember that he got down on his knees and begged Nanny Pelosi to help him.


15 posted on 02/16/2010 5:29:36 PM PST by Virginia Ridgerunner (Sarah Palin has crossed the Rubicon!)
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http://www.forbes.com/fdc/bios/new/robertlenzner.html

Robert Lenzner is National Editor of Forbes magazine. He joined Forbes as a Senior Editor in September 1992. His areas of expertise include Wall Street, investment banking, finance, the oil industry, corporate takeovers, insider trading and litigation.

Prior to joining Forbes, Mr. Lenzner was a Columnist for the Boston Globe and the Dallas Morning News from 1990 to 1992. He was New York Correspondent for the Boston Globe from 1971 to 1982 and their New York Bureau Chief from 1983 to 1990. He was also a Correspondent for The Economist from 1973 to 1992.

From 1969 to 1970 Mr. Lenzner was Manager of the Arbitrage Department at Oppenheimer & Co., and he was assistant to the partner in charge of trading and arbitrage at Goldman Sachs & Co. from 1962 to 1968.

Mr. Lenzner has appeared on “Forbes on Fox,” “Forbes on Radio,” the BBC, CNN, CNBC and MSNBC. He can address Wall Street, the market, interest rates, white-collar crime, housing, the dollar and corporate governance.

He is the author of The Great Getty, a biography of J. Paul Getty, which spent 13 weeks on the New York Times bestseller list, rising to number three. His articles have also appeared in Barron’s, Vanity Fair, the (London) Financial Times, the New York Observer and the Rocky Mountain News, among others.

Mr. Lenzner has a B.A. (cum laude) from Harvard University and an M.B.A. from Columbia University. He also attended Oxford University from 1957 to 1958.


16 posted on 02/16/2010 5:31:35 PM PST by maggief
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To: 1rudeboy

How is criticizing Goldman Sachs “self-serving”? Aside from not liking to see tax money go to a company that seems to own the Treasury Department (along with CITI) and get bailouts whenever one of their risky insvestments goes bad.

Nice racket for the Ivy League grifters of the Wall Street-Washington job exchange though. I’m sure they really care about the average American’s well being.


17 posted on 02/16/2010 5:34:03 PM PST by Hugin (Sarah Palin,: accept no substitutes!)
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To: Hugin
The difference between "self-serving" criticism and the regular type is that the former merely involves impugning someone because they are associated with Goldman Sachs, and the latter involves impugning someone associated with Goldman Sachs for an actual, quantifiable and qualifiable, reason.
18 posted on 02/16/2010 5:37:18 PM PST by 1rudeboy
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To: 1rudeboy

A trillion dollar bait and swicth is reason enough for me. Fool me once...


19 posted on 02/16/2010 5:39:57 PM PST by Hugin (Sarah Palin,: accept no substitutes!)
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To: maggief

LOL. I watched Greta interview him.
I’m not certain I want to plow through his book....


20 posted on 02/16/2010 5:42:36 PM PST by onyx (BE A MONTHLY DONOR - I AM)
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To: Virginia Ridgerunner

What was he doing on his knees? You sure it was him?


21 posted on 02/16/2010 5:43:18 PM PST by hoosiermama (ONLY DEAD FISH GO WITH THE FLOW.......I am swimming with Sarahcudah! Sarah has read the tealeaves.)
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To: Hugin

You may be ultimately proven correct. I won’t read the book for a couple months, myself. (I usually don’t make up my mind before learning what happened).


22 posted on 02/16/2010 5:43:44 PM PST by 1rudeboy
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To: maggief

Harvard, Columbia....looks like we need to avoid those two.


23 posted on 02/16/2010 5:44:40 PM PST by hoosiermama (ONLY DEAD FISH GO WITH THE FLOW.......I am swimming with Sarahcudah! Sarah has read the tealeaves.)
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To: hoosiermama
Talks Implode During a Day of Chaos; Fate of Bailout Plan Remains Unresolved

"Thursday, in the Roosevelt Room after the session, the Treasury secretary, Henry M. Paulson Jr., literally bent down on one knee as he pleaded with Nancy Pelosi, the House Speaker, not to “blow it up” by withdrawing her party’s support for the package over what Ms. Pelosi derided as a Republican betrayal."

24 posted on 02/16/2010 5:48:19 PM PST by Virginia Ridgerunner (Sarah Palin has crossed the Rubicon!)
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To: All
Bill Fleckenstein has a couple of books he recommends (you can refuse to read them also, and become true experts). He recommends his own book, also, but he writes for MSN Money, so he is automatically suspect and can be ignored also (/sarc):

Ron Paul, End the Fed.
Bill Fleckenstein, Greenspan's Bubbles: The Age of Recklessness at the Federal Reserve.
Barry Ritholtz, Bailout Nation.
William Cohan, House of Cards: A Tale of Hubris and Wretched Excess on Wall Street.
Patrick Robinson, A Colossal Failure of Common Sense:The Inside Story of the Collapse of Lehman Brothers.
Charles Gasparino, The Sellout: How Three Decades of Wall Street Greed and Government Mismanagement Destroyed the Global Financial System.

He recommends Gasparino the most. I recommend, Thomas Sowell's, The Housing Boom and Bust.
25 posted on 02/16/2010 5:54:54 PM PST by 1rudeboy
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To: 1rudeboy

““I ain’t one fer no fancy book-lernin.’””

Perhaps we view his academic background as long on name and short on substance.


26 posted on 02/16/2010 6:08:43 PM PST by Favor Center (Targets Up! Hold hard and favor center!)
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To: Favor Center

If you haven’t gathered the larger point that I’m trying to make, then I will simply repeat, “short on substance” is something that is easy to prove, as well as assume.


27 posted on 02/16/2010 6:11:43 PM PST by 1rudeboy
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To: 1rudeboy
“If you haven’t gathered the larger point that I’m trying to make, then I will simply repeat, “short on substance” is something that is easy to prove, as well as assume.”

Perhaps you've missed my point: a degree from a prestigious university is no actual proof you had any appropriate or useful “book lernin”. It means you have a checkbook and could pass a test. Little more.

It's not as if his field (Paulson's) was particularly rigorous. He just has an MBA.

28 posted on 02/16/2010 6:17:07 PM PST by Favor Center (Targets Up! Hold hard and favor center!)
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To: 1rudeboy

paulson hearts obama

Lloyd Blankfein, Goldman Sachs chairman, told him that Goldman would be “next” if speculators succeeded in bringing down Morgan Stanley, the former Treasury secretary said.

“If they go, we’re next,” Mr Blankfein told Mr Paulson, a former Goldman chairman who had recused himself from decisions relating to his former company.

US officials explored the possibility of mergers between JPMorgan and Morgan Stanley, Goldman and Citigroup, or Goldman and Wachovia, before settling on turning Morgan Stanley and Goldman into banks with access to central bank loans.

Even then, Morgan Stanley was not safe until the US Treasury helped seal an investment by Japan’s Mitsubishi UFJ, Mr Paulson writes.

The frenzied manoeuvring came in the three-week period between the failure of Lehman on September 15 2008, and Columbus Day weekend in early October, when the global financial system was on the verge of meltdown.

“Banks were going down like flies,” Mr Paulson told the FT. As his book details, he was scrambling to secure Tarp bail-out funds from Congress.

“The timing could not have been worse since we were months or weeks from the election so you had the collision of markets and politics.”

Although a Republican, Mr Paulson found it harder to deal with John McCain than Barack Obama – raising the interesting (and unanswered) question of which candidate Mr Paulson voted for.

http://www.ft.com/cms/s/0/772748d6-0e94-11df-bd79-00144feabdc0.html


29 posted on 02/16/2010 6:21:05 PM PST by FromLori (FromLori)
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To: Favor Center
Perhaps you've missed my point: a degree from a prestigious university is no actual proof you had any appropriate or useful “book lernin”. It means you have a checkbook and could pass a test. Little more.

I was afraid that it was your point, actually. You appear to be arguing that Paulson claims in his book (that I haven't read) that people should listen to him because he graduated from an Ivy League School.

I should add that no one that I can see is doing anything of the kind, much less Paulson himself, but there is no shortage of people arguing that we should not listen to him for the same reason.

30 posted on 02/16/2010 6:24:50 PM PST by 1rudeboy
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To: FromLori

That may be true. Now why shouldn’t I read his book, again?


31 posted on 02/16/2010 6:26:39 PM PST by 1rudeboy
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To: 1rudeboy
“I was afraid that it was your point, actually. You appear to be arguing that Paulson claims in his book (that I haven't read) that people should listen to him because he graduated from an Ivy League School.”

I presume that he thinks people should listen to him because he was SecTreas. I was replying to your “don't need no book lernin’” line.

“I should add that no one that I can see is doing anything of the kind, much less Paulson himself, but there is no shortage of people arguing that we should not listen to him for the same reason.”

Best I can tell, he's a liar and a thief, albeit “legally”. So, that is one reason not to listen to him. Perhaps, after the audit, he'll be indicted.

32 posted on 02/16/2010 6:30:11 PM PST by Favor Center (Targets Up! Hold hard and favor center!)
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To: Favor Center
Best I can tell, he's a liar and a thief, albeit “legally”. So, that is one reason not to listen to him. Perhaps, after the audit, he'll be indicted.

I'm just trying to get a handle on how someone can express a desire to see someone "indicted" while expressing no desire to hear that person express their side of the story. Never mind, I just got a handle on it. Burn him with fire.

33 posted on 02/16/2010 6:34:20 PM PST by 1rudeboy
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To: FromLori
Although a Republican, Mr Paulson...

Paulson was a Republican???!!!

A self-serving RINO, then. Hardly a conservative.

34 posted on 02/16/2010 6:46:17 PM PST by okie01 (THE MAINSTREAM MEDIA: Ignorance on Parade)
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To: 1rudeboy

“I’m just trying to get a handle on how someone can express a desire to see someone “indicted” while expressing no desire to hear that person express their side of the story.”

Because I don’t expect it to be anything other than spin.

Everyone is innocent in prison, after all.


35 posted on 02/16/2010 7:02:10 PM PST by Favor Center (Targets Up! Hold hard and favor center!)
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To: 1rudeboy
Good evening.

When you are finished with Paulson's book, tell me the answer to these questions (I'm lazy, and probably won't read the book):

Who were the people/governments that were able to take half a trillion dollars out of circulation within a 36 hour period? And how did they do it?

Thanking you in advance...

5.56mm

36 posted on 02/16/2010 7:02:23 PM PST by M Kehoe
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To: okie01

“A self-serving RINO, then. Hardly a conservative.”

There were only a handful of conservatives in the Bush Admin. I can only think of Bolton, Ashrcroft, and maybe Cheney.


37 posted on 02/16/2010 7:03:38 PM PST by Favor Center (Targets Up! Hold hard and favor center!)
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To: Favor Center
Everyone is innocent in prison, after all.

Last time I checked, before someone gets tossed in prison there usually is a trial.

38 posted on 02/16/2010 7:04:28 PM PST by 1rudeboy
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To: M Kehoe

I haven’t heard of that . . . if anything, I thought that the Fed flooded the system with dollars . . . .


39 posted on 02/16/2010 7:05:58 PM PST by 1rudeboy
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To: 1rudeboy

“Last time I checked, before someone gets tossed in prison there usually is a trial.”

Missin’ the point again, I see. OK... How about this:

“Everyone on trial is innocent”.


40 posted on 02/16/2010 7:15:05 PM PST by Favor Center (Targets Up! Hold hard and favor center!)
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To: Favor Center

I’m not missing any point. Nothing’s wrong with being prejudiced, but you should be honest and admit it . . . .


41 posted on 02/16/2010 7:16:24 PM PST by 1rudeboy
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To: 1rudeboy
I haven’t heard of that . . . if anything, I thought that the Fed flooded the system with dollars . . . .

Yes, the Fed intervened. They had to, otherwise Paulson's title to his book would be, "How the Collapse of the Global Financial System Happened."

5.56mm

42 posted on 02/16/2010 7:24:37 PM PST by M Kehoe
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To: 1rudeboy
Another book to add to the reading pile.

Woodpile is more like it, unless you like tall stories.

43 posted on 02/16/2010 7:29:55 PM PST by mac_truck ( Aide toi et dieu t aidera)
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To: 1rudeboy

“Another book to add to the reading pile.”

No, another book to add to the burning pile. Paulson, along with Sheila Bair did massive damage to our economy by stealing Washington Mutual to prop up JPM. To hell with both of them.


44 posted on 02/16/2010 7:32:29 PM PST by tickedoffnow (No more...)
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To: mac_truck

Actually, I like fiction also. But you have to read it first, right? Before you develop an opinion of it?


45 posted on 02/16/2010 7:40:08 PM PST by 1rudeboy
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For later:

EXCERPT: Henry M. Paulson Jr.'s: 'On the Brink'.

46 posted on 02/16/2010 7:50:25 PM PST by 1rudeboy
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To: maggief

Prior to joining Forbes, Mr. Lenzner was a Columnist for the Boston Globe and the Dallas Morning News from 1990 to 1992. He was New York Correspondent for the Boston Globe from 1971 to 1982 and their New York Bureau Chief from 1983 to 1990.

From 1969 to 1970 Mr. Lenzner was Manager of the Arbitrage Department at Oppenheimer & Co., and he was assistant to the partner in charge of trading and arbitrage at Goldman Sachs & Co. from 1962 to 1968.

******

Monday, September 7, 2009
Robert Lenzner and Judge Richard Posner Argue for International Socialism

Press Here

47 posted on 02/16/2010 9:01:54 PM PST by kcvl
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To: kcvl

Mitchell Langbert has researched and written about employee benefit issues and was a corporate benefits administrator. He is currently associate professor of business at Brooklyn College. I hold a Ph.D. from the Columbia University Graduate School of Business, an MBA from UCLA and an AB from Sarah Lawrence College.


48 posted on 02/17/2010 6:43:44 AM PST by 1rudeboy
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To: 1rudeboy

Pauson’s been making the rounds on tv. You don’t need to read his book to reject his premise on the financial crisis and the web of lies that flow from it.


49 posted on 02/17/2010 6:56:01 AM PST by mac_truck ( Aide toi et dieu t aidera)
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To: mac_truck
What is Paulson's premise? What web of lies flowed from it? Sorry if I'm being a stick-in-the-mud, but I'd like to see opinions that are supported.

So far, all I've seen is:

"it is because I say so,"
"I don't need to learn otherwise,"
"he worked for Goldman,"
"he went to Columbia,"
"I found a blog doing a Google search on 'Lenzner,'" and
etc.
That's some pretty thin gruel.
50 posted on 02/17/2010 7:03:36 AM PST by 1rudeboy
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