EppsNet Archive: Bailouts

Goldman Sachs CEO Henry Paulson Endorses Hillary Clinton

25 Jun 2016 /
Hillary Clinton

I’m seeing a lot of headlines today on Henry Paulson’s endorsement of Hillary Clinton, in all of which Paulson is identified as “President George W. Bush’s treasury chief Henry Paulson,” or “ex-GOP Treasury Secretary Henry Paulson,” or something to that effect.

There are certainly other ways of identifying Henry Paulson, e.g.,

  • Former Goldman Sachs chief executive Henry Paulson
  • Architect of TARP and “Too Big to Fail” Henry Paulson
  • Wealthy Wall Street goon Henry Paulson
  • Henry Paulson, who used his position as Treasury Secretary to bail out his Wall Street friends with taxpayer money

It’s hard to see how an endorsement from Henry Paulson is anything but a nail in the coffin of the Clinton campaign . . . I took millions of dollars for speeches to Wall Street banks and investment firms, including $675,000 from Goldman Sachs (see New York Times), and now they’re all endorsing me! (Shocking.) Also: I am the candidate best positioned to hold the financial industry accountable for its practices.

Clinton -— as the Times piece linked above helpfully notes —- has run through a series of bad answers about why she gave the speeches and why she is now unwilling to authorize the release of the transcripts of them.


Greece is Going Out of Business

9 Jul 2015 /

I remember the good old days when we only had to worry about small banks going out of business. Then big banks started to go out of business, then non-bank financial institutions, and now small countries.

The problem with having a lot of debt is that, with some exceptions (“too big to fail”), bad things happen when your investors get nervous.

My memory is not photographic as some of the legends about me say, but I am sure I would remember if the works of Adam Smith included the phrase “too big to fail.” — Garry Kasparov

What are the odds that people running companies or countries will make smart decisions about money if they don’t need to make smart decisions — if they can do just as well or better making dumb decisions and being rescued from the consequences?

According to the government debt chart below, the next countries in line for a day of reckoning are two more small countries (Ireland, Portugal) and a medium-sized country (Italy). Further down the chart are two big countries.

The United States, the biggest of the big, is not shown on the chart but is currently at 100 percent debt to GDP.

Government debt


Best 10-Word Explanation of Why the Big 3 Bailout Should Die

11 Dec 2008 /

We simply cannot ask the American taxpayer to subsidize failure.