How Could Paulson Say Global Economy Depends On US Taxpayers?

The Wall St Journal has reported that US House and Senate leaders have agreed to a compromise deal on a housing package that would protect Fannie Mae (FNM) and Freddie Mac (FRE) in an emergency, overhaul supervision of these government-sponsored agencies, and allow the government to insure up to $300 billion in refinanced mortgages.

As Treasury Secretary Paulson sold this bill of goods on the US taxpayer, not once did he have the integrity to explain to them that they would be paying more than $100 per man, woman and child in America, and that the relatively few shareholders and bondholders, of which 30% are foreigners, would benefit by that same $35 billion.

When does the nonsense stop?

If Fannie and Freddie were to be taken over by the government, the business would continue. The stockholders and bondholders would lose their investment. Executive managers would lose their jobs. But, the business would continue. Maybe the government would have to inject $3 billion instead of $35 billion, but $10 per person cost would be affordable. And the knowledge that Paulson’s friends finally took their losses would be precious.

We might even be moved to think that the capital markets were free once again. That’s a maybe.

It irks me that Paulson now says the global economy depends on the US taxpayer. If the man had a shred of integrity, he would say that it is his power group that depends on it. The fact is that China, Russia, and India, which have never been allies of the Paulson group, are enjoying the fruits of strong economies, despite America, and they really don’t need the largesse of the US taxpayer.

If I were a US taxpayer, I would call my federal representatives today and tell them that if any of them voted for the Paulson package, I wouldn’t be voting for or financially supporting them ever again.

Besides, this aid package is not being borne by all Americans, it is being foisted on the ones who pay the most taxes. And we all know who that is.

Ask Henry Paulson how much tax he paid last year. You’ll get the same blank-face, blink-eyed stare we’ve all become so used to.

This man has no intention of playing fair. Just think, another six months!

Posted in Categories: Contributor, Economy, External Research.