Comment

On the Brink

Inside the Race to Stop the Collapse of the Global Financial System
Jan 18, 2013
This pile of drivel is unworthy of comment but to clarify all of Paulson's misrepresentations, obfuscations, and outright lies: John Paulson (vaunted hedge fund manager) got together with Paulson's Goldman Sachs (and yes, Paulson was most certainly there when this took place) and they designed CDOs (Abacus CDO was one of the major ones) with trashy mortgage loans which were sure to fail. Next they purchased credit default swaps (unregulated insurance credit derivatives designed by JPMorgan Chase's Blyth Masters) averaging a purchase price per CDS of $1.4 million - - - with a payout per CDS when failure (a credit event) took place, of $100 million. Quite a profitable markup on financial fraud, and thusly did Hank Paulson (supposed to be no relation to John Paulson???) bail out AIG (who sold all those credit default swaps to John Paulson, Goldman Sachs, JPMorgan Chase, Morgan Stanley and others) who never had the capital on hand to cover all the insurance they sold (E.g., AIG sold $460 billion of CDSes, or unregulated insurance, with a potential payout of from $20 trillion to over $40 trillion, and they didn't even have $200 billion on hand!!!). [A followup point: Malcom Gladwell was spewing forth his usual disinformation (as does David Brooks, Thomas Friedman, David Ignatius, et al.) claiming in an interview that "Enron hadn't broken any laws.." ???????!?!?! Clearly, none of these faux newsies know anything of the law, nor history, nor journalism, nor finance or economics, etc., ad infinitum. All one need do is to Google the following (and do put it within doublequotes, regardless of what the Google docs say): "www.sec.gov/litigation/litreleases" "Enron" (or if interested, insert one of the other banksters for Enron, such as "J.P. Morgan" "Morgan Stanley" "Goldman Sachs")]