3-2-09
Greenspan, Rothschilds
& Rockefellers Manipulate Economic Bubble & Meltdown, Create & Buy
Bundled Mortgage Derivative "Puts" - Steal Trillions in Bailout Money
The
mortgage bailout is not about saving banks or helping the American people. Its
about giving the Rothschilds and Rockefellers the bailout money - trillions.
Alan Greenspan, working for the Rothschilds and Rockefellers, created the economic
bubble and unregulated mortgage derivatives for the purpose of making the Rothschilds
and Rockefellers trillions. What the three did was deliberate and they make
war on the USA in the process, which is treason. It will take a while for all
the facts of the Greenspan, Rockefeller, Rothschild scam to come to light, but
as the facts come in, their hustle is becoming clearer. Greenspan, while Federal
Reserve Chairman, created and promoted unregulated mortgage derivatives. What
is a derivative? A derivative is the right to buy or sell a commodity that one
may or may not own. Think of a derivative as something derived from nothing.
Obama is another Rothschild Rockefeller derivative. In this case, Greenspan
allowed and encouraged lenders loaning money for mortgages to bundle them and
sell them as a commodity over the counter in an unregulated fashion. Why did
Greenspan want the bundles of "Put" mortgages sold unregulated? Greenspan
did not want people to realize it was the Rothschilds and Rockefellers who were
buying the "Puts." Not only did Greenspan allow and encourage those
who lent money on mortgages to sell them in bulk, Greenspan encouraged these
lenders to create and lend money in a manner that basically guaranteed the loans
would default. It would take a long time to list all the ways Greenspan created
loans that he knew beforehand would default. But, 82 % of the junk mortgages
were loans to minorities, many of the borrowers had falsified incomes, and many
were ARMs where the interest rates jumped way up after a short period of time,
and most had no down payment. The loans were basically a contest as to what
lender could create the biggest unworthy loan. Only a very common person could/would
do what Greenspan, the Rothschilds and Rockefellers did to America. They are
making war on America for the explicit purpose of destroying America. Water
boarding the truth out of them, giving them the needle after they are found
guilty of treason, on the nightly news, letting schools out for a holiday, throwing
their bodies in the Hudson and encouraging the people to defecate on them, is
way to kind. Not to mention Jewish people, logic dictates, will be blamed for
the entire scam, triggering Holocaust II.
The Rothschilds and Rockefellers
bought "Puts" on Greenspan's bundles of mortgages, which means they
were betting the mortgages would decrease in value and/or become worthless.
The Rothschilds and Rockefellers were not taking a risk since they were in cahoots
with Greenspan and they knew Greenspan, at their behest, was deliberately creating
mortgages which would default. Warren Buffett, banks, and companies bundling
mortgages sold the Rothschilds and Rockefellers "Puts" on bundles
of mortgages and made the fee for selling the bundled mortgages. Buffett recently
stated his companies earned nearly $ 5 billion in premiums on bundles of mortgage
"Puts" they sold. Every dollar houses fall in value is a dollar which
goes to the Rothschilds and Rockefellers bundled mortgage "Puts" profit.
Let's say Greenspan's creative financing created $ 10 trillion in housing loans
and these loans were bundled and sold to the Rothschilds and Rockefellers for
$ 50 billion in "put" premiums. Most of Greenspan's junk mortgages
sold "short" to the Rothschilds and Rockefellers are worth approximately
50 cents on the dollar or less now as I type. So far the Rockefellers and Rothschilds
have profits from their mindless scam of at least $ 5 trillion. Who has lost
the $ 5 trillion? Middle class Americans who owned shares of Wachovia, and all
the other lenders who were scammed by Greenspan, Rothschilds and Rockefellers.
Much of the Greenspan,
Rothschilds, Rockefellers profit from their mortgage derivative scam is in the
form of paper profits.
Here
is where Obama, Little George, Henry Paulson and Tim Geinther enter the picture.
Paulson and Geinther work directly for the Rothschilds and Rockefellers. Obama
and Little George work indirectly for the Rothschilds and Rockefellers. Geinther
and Paulson are arranging the financing to give the banks and mortgage companies,
so called "bail out" money. Bail out money to save America is just
another bad guy con. The bail out money is money which will go to the Rothschilds
and Rockefellers for the "Puts" on bundled mortgages banks sold them.
So the Rothschilds and Rockefellers are getting the trillions in bailout money
on a scam they created from beginning to end.
So what happens if the
government fails to bail out the banks? The banks default on the "Puts,"
and the Rothschilds and Rockefellers don't get paid. So the mortgage bailout,
and how much money "We the people," give the banks, really boils down
to how much money, "We the people," give the Rothschilds and Rockefellers
for their hustle.
My suggestion is for Obama
to declare all contracts on derivatives on bundles of mortgages "null and
void." Give the sellers of these bundles of mortgages the right to refund
say half the premium earned in exchange getting out of the contract.
If the mortgage derivative
contracts aren't cancelled, for the Rothschilds and Rockefellers, the fun just
starts when they get paid for their "Puts" in the form of trillions
of the mortgage bail out money. What will the Rothschilds and Rockefellers do
with the bail out trillions they are in the process of stealing from us? We
know they won't spend it for the good of the people. The Rothschilds and Rockefellers
own our banking system and have taken in, I can't call it earned money because
it is theft pure and simple, over $ 5 trillion dollars, tax free, since its
inception in 1913. The Rothschilds and Rockefellers have used the $ 5 trillion
for financing war, Hitler, the Holocaust, developing and spreading AIDS and
Hepatitis, Sept. 11, the DC sniper scam, and now they have turned on their propaganda
machine to promote war with Iran and Russia. One scenario we can expect is for
the Rothschilds and Rockefellers to use the $6 or 7 trillion they expect to
get from the taxpayer bailout to buy the stocks they have manipulated down,
for pennies on the dollar. One might think the Rothschilds and Rockefellers
would be satisfied with the $ 7 trillion or so they steal from their "bubble/derivative"
scam, but don't count on it. Expect massive inflation as bogus dollars are printed
to pay for the bailout money handed over to the bad guys. The Rothschilds and
Rockefellers newly purchased stocks will go to the races from inflation, and
then the bad guys will make trillions more on the interest they charge to quell
the inflation they manipulated. Why do you think Paul Volcker is around? Volcker
is a master at raising interest rates to hurt the people and steal for the Rothschilds
and Rockefellers.
One of the Rothschild pleasures
occurred when certain Jewish people near death during the Holocaust learned
it was a fellow Jew, the Rothschilds, who was responsible for their death. A
Rothschild and Warren Buffett are buddies, and you can guess the pleasure the
Rothschilds will feel when Buffett goes down to derivatives. Stealing money
is a Rothschild/Rockefeller pleasure, but hurting people may be nearly as big
a pleasure as devising scams to steal money.
The world has a choice.
Extract our banking system from the Rothschilds/Rockefellers, or die.
Obama's
post-speech 'bounce:' Up again Posted on Huffingtonpost.com - A
communi$t organization
Obama's speech was a State
of the Union Address, prescribed by the US Constitution even if the media will
not give the US Constitution credit for it. What the heck was it if it was not
a State of the Union Address? Tuesday night. Every speech the president gives
to a joint session of Congress is a State of the Union Address. The problem
is the media owned by the bad guys hates our US Constitution to such as degree
they have set themselves above the US Constitution. Therefore, a State of the
Union Address now is spun as if it is the idea of the Executive Office and a
speech, and not prescribed in Article II, Section 3, of the US Constitution.
This is a little more proof the Obama Administration is going to be as communi$t
as can be, and they could care less about the US Constitution and giving it
credit where credit is due. The Obama Administration has engaged in Constitutional
plagiarism by calling Obama's State of the Union Address a "Speech."
Frank Newport, editor-in-chief
of the Gallup Poll, suggests that Obama's strong standing -- and the bounce
he has gotten from a speech which may not have been a State of the Union
address but sure sounded like one -- indicates that the public is handing
the president a lot of confidence in his ability to do something about the condition
of the economy.
Obama
Commits Treason - Orders Drones to Make War in Pakistan
President Obama has ordered
our military to engage in military action in Pakistan. This is treason because
the president engaging in war without being directed by Congress to do so is
the same as the president making war on the USA, treason. Also the president
directing our military to engage in military action in Pakistan is a violation
of International Law, because it is against International Law for the USA to
bomb Pakistan. comrade Little George received negative press when he declared
the Iraq War won by the USA. The communi$t media loves Obama so they will not
give Obama flack for his
statement regarding the end of the Iraq War which does not ring true and
no one believes, but obviously one day Obama's statement will be regarded just
as comrade Little George's USA Wins Iraq War gaffe. Note in the Pakistan drone
article Admiral Mullen says he is “carrying out guidance from President
Obama” in the region. I love it. Mullen knows making war in Pakistan is
treason, and defers to Obama for his orders in the hope this saves him from
committing treason. The world knows Obama is lying to us when he says the Iraq
war has ended when the USA is fighting in Afghanistan and Pakistan. There is
no way for there to be an end of the Iraq War when the USA is still engaging
in War in Afghanistan and Pakistan. The Huffingtonpost.com lies to us everyday
and it appears the Huffingtonpost.com lying to us has rubbed off on Obama. One
could tell when comrade Little George was lying to us because when Little George
wiggled his lips he lied. Is this how we will tell when Obama lies to us?
Well I Called this
One Correctly, Obama Wants USA Citizens to Stay Terrorists Without Our Civil
Rights
In this article
http://www.randycrow.com/articles/020209.htm I write that an Obama Executive
Order is designed to strip us of our Civil Rights and declare US citizens as
terrorists. Unfortunately my slant turns out to be right as rain, Obama's legal
team asks the US Supreme Court to drop charges against Al-Marri, Gov't
asks Supreme Court to dismiss Al-Marri case. comrade Little George was successful
in getting US citizens declared as enemy combatants to be tried by Military
Tribunals without our Civil Rights in the Jose Padilla case. The Rothschilds
and Rockefellers put Obama in Office just as they put comrade Little George
in Office. The Rothschilds and Rockefellers, after they steal trillions from
us in the form of bail out money, will tell Obama to declare Martial Law and
have us tried as enemy combatants by Military Tribunals without Civil Rights.
This will be when Jewish people are Holocaust ed again. Obama proved he is just
as anti US Constitution as comrade Little George when Obama's legal team asked
the US Supreme Court to drop charges against Al-Marri. It is hard to imagine
that Obama hates the United States as much as Little George, but then Obama
is not even eligible to be president so, who knows, Obama may hate the USA and
the US Constitution as much as comrade Little George does.
An Obama Executive Order
Is Designed to Keep US Citizens Terrorists, Enemy Combatants, Without Our Civil
Rights
As Jacob G. Hornberger explains in his article,Obama and the al-Marri Case,
the Bush Administration, "From 9/11 forward, the president wielded the
power to take any American into custody as an enemy combatant terrorist and
treat him accordingly — waterboarding, isolation, indefinite incarceration,
etc. No jury trial. No Bill of Rights. No Constitution." This new presidential
power given by Little George to himself allowed him, the president, to call
us terrorists, declare us, Enemy Combatants without Civil rights. So far, until
comrade Little George slimmed off the scene, the Bush Administration through
legal maneuvering had been able to keep the US Supreme Court from ruling on
the Padilla case and thus this illegal presidential order which eliminated our
Civil Rights is still in force.
Obama's nearly first Executive Order
keeps Bush's game of keeping the US Supreme Court away from ruling on comrade
Little George's illegal Presidential Executive Order, which makes US citizens
terrorists, enemy combatants, without civil rights, going. Obama is keeping
Little George's scam going when Obama ordered the Justice Department to review
the case of Ali Saleh al-Marri. Ali Saleh al-Marri's case is headed for the
US Supreme Court. Logic dictates, since Obama has been put in Office by the
Rothschilds and Rockefellers, as was comrade Little George, Obama does not want
al-Marri's case heard by the US Supreme Court, just as Bush did not want al-Marri's
case heard by the US Supreme Court, both presidents bad guy puppets. The communi$t$'
game is to keep the al-Marri case away from the US Supreme Court, even if it
means dropping the case against al-Marri. Bush got the Fourth Circuit Court
of Appeals to rule against Padilla, and the American people have been terrorists,
enemy combatants, without Civil Rights, ever since. The bad guys, including
Obama, do not want the Civil Rights of the American people returned to them
by the US Supreme Court. This is why one of Obama's first Executive Orders ordered
the Justice Department to review the al-Marri case. Logic dictates it will be
reviewed so legal maneuvering will take place so the al-Marri case does not
go to the US Supreme Court.
http://wire.antiwar.com/2009/02/28/govt-asks-supreme-court-to-dismiss-al-marri-case-2/
Gov't asks Supreme Court to dismiss Al-Marri case
Obama administration won't rule out indefinite detentions for terror suspects
captured in US
MARK SHERMAN and DEVLIN BARRETT
AP News
Feb 28, 2009 09:36 EST
Suspected al-Qaida sleeper agent Ali Al-Marri is now facing criminal charges,
but the Obama administration is refusing to rule out the future use of indefinite
detention for terrorism suspects picked up in the United States.
The administration urged the Supreme Court Friday to dismiss al-Marri's challenge
to the president's authority to detain people in the U.S. indefinitely and without
charges.
Al-Marri was the only person being held inside this country without being charged,
the administration said in court papers, and President Barack Obama "has
ordered a comprehensive review of all military detention policies worldwide."
The transfer signals that Obama is likely to handle accused terrorists in a
significantly different way from the Bush administration's aggressive use of
preventive detention.
Still, rather than foreclose the use of presidential power or risk an unfavorable
court decision that might bind Obama or a successor, acting Solicitor General
Edwin Kneedler told the court, there is no "certainty as to whether, or
in what circumstances" the issue will arise again.
Al-Marri has been held in a Navy brig outside Charleston, S.C. for more than
five years since President George W. Bush declared him an enemy combatant.
He will now be transferred to Peoria, Ill., to face trial in a civilian court
on a charge of providing material support to al-Qaida and a related conspiracy
count. The charges carry a maximum prison sentence of 15 years each.
His lawyer Jonathan Hafetz called the indictment "an important step toward
restoring the rule of law," and said he was glad his client's guilt or
innocence will now be decided in a courtroom.
But Hafetz called on the high court to hold onto al-Marri's case and reject
the sweeping assertion of presidential authority.
"Despite this indictment, the Obama administration has yet to renounce
the government's asserted authority to imprison legal residents and U.S. citizens
without charge or trial," Hafetz said.
The court is scheduled to hear arguments in the case on April 27.
The administration acted quickly to indict al-Marri in civilian court so that
it could seek dismissal of the Supreme Court case without having to file a legal
brief that either would defend the Bush administration's position or abandon
it. Neither prospect was especially appealing to the young administration, which
also has moved cautiously on other legal matters involving national security
issues.
The court asked al-Marri's lawyers to respond by Tuesday, making it possible
that the justices could come to a decision at their private conference on March
6.
Several court watchers predicted the justices would grant the government's
request because moving al-Marri out of military custody and into civilian court
is precisely what he asked for.
"The odds are the Supreme Court is going to let this go," said Thomas
Goldstein, a Washington lawyer who argues before the court and follows it closely.
The court reacted in similar fashion three years ago, turning down the case
of Jose Padilla, the U.S. citizen alleged to be part of a plot to set off a
radiological "dirty bomb" in the United States.
Padilla's lawyers had argued that the justices should hear his case even though
he had been transferred from the same brig as al-Marri to face criminal charges
in Miami.
Three justices — Stephen Breyer, Ruth Bader Ginsburg and David Souter
— said the court should have heard Padilla's case anyway. It "raises
a question of profound importance to the nation," Ginsburg said.
Jonathan M. Freiman, a lawyer in New Haven, Conn., who represented Padilla,
called al-Marri's transfer "a calculated political move to avoid taking
a position" in front of the high court.
"What the Bush administration did with Padilla, the Obama administration
is trying to do with al-Marri. Transferring al-Marri out of the brig is the
right thing to do. Moving to dismiss the case is not," he said.
Padilla eventually was convicted of conspiring to support Islamic extremists
around the world, charges unrelated to the "dirty bomb" allegations.
Al-Marri's sparse, two-page indictment appears more closely related to the
reasons given for his detention in the brig.
Obama has ordered the military to turn al-Marri over to the Justice Department,
although he will remain in military custody until the Supreme Court signs off
on the transfer.
The government has said al-Marri is an al-Qaida sleeper agent who has met Osama
bin Laden and spent time at a terrorist training camp in Afghanistan.
A legal U.S. resident when he was arrested, al-Marri has been held in solitary
confinement at the brig since 2003.
Al-Marri was arrested in late 2001 as part of the FBI's investigation of the
Sept. 11 attacks. Prosecutors at first indicted him on charges of credit card
fraud and lying to the FBI, not terror charges.
In June 2003, Bush said al-Marri had vital information about terror plots,
declared him an enemy combatant and ordered him transferred to military custody.
Source: AP News
,
At Least 12 Killed in US Drone Strike in South Waziristan
Three Others Reported Wounded
Posted March 1, 2009
Updated 3/1/09 6:45 PM EST
Pakistani intelligence officials confirmed today that the missile attacks on
a house in Sararogha, South Waziristan Agency came from a US drone. Joint Chiefs
chairman Admiral Michael Mullen declined to comment on the specifics of the
operation but said that the military has been “carrying out guidance from
President Obama” in the region.
At least 12 people were killed and three others injured. Officials said at
least some of those killed were foreign militants, but others said all the casualties
were local tribesmen. Police are promising an investigation but have not disclosed
the identities of those killed.
Since President Obama took office the number and severity of the drone strikes
on Pakistani territory have increased dramatically. Though the Pakistani government
has continued to publicly complain about the attacks, mounting evidence suggests
they have been providing direct backing to them.
Posted February 28, 2009 11:30 AM
by Mark Silva
In the days since President Barack Obama's televised address to a joint session
of Congress, he has reclaimed the level of public approval with which he started
his presidency.
Sixty-seven percent of Americans surveyed Wednesday through Friday said they
approve of the job that Obama is doing as president, according to the findings
of the Gallup Poll.
That restores the president's public support to roughly the level he enjoyed
his first days in office, 68 and 69 percent in the Gallup Poll's daily tracking.
It also marks a "bounce'' since the prime-time address that Obama delivered
this week. His public approval had slipped to 59 percent heading into that address,
Gallup found.
It's also noteable, in light of the fact that 74 percent of those surveyed
say the country is not well.
Frank Newport, editor-in-chief of the Gallup Poll, suggests that Obama's
strong standing -- and the bounce he has gotten from a speech which may
not have been a State of the Union address but sure sounded like one
-- indicates that the public is handing the president a lot of confidence in
his ability to do something about the condition of the economy.
The test, Newport says, will be how the economy responds.
Alan Greenspan
From Wikipedia, the free encyclopedia
Jump to: navigation, search
Alan Greenspan
http://en.wikipedia.org/wiki/Alan_Greenspan
--------------------------------------------------------------------------------
13th Chairman of the Federal Reserve
In office
August 11, 1987 – January 31, 2006
President Ronald Reagan
George H. W. Bush
Bill Clinton
George W. Bush
Preceded by Paul Volcker
Succeeded by Ben Bernanke
--------------------------------------------------------------------------------
Born March 6, 1926 (1926-03-06) (age 82)
New York City, New York
Nationality American
Spouse Andrea Mitchell
Alma mater New York University
Columbia University
Profession Economist
Religion Judaism
Alan Greenspan (born March 6, 1926 in New York City) is an American economist
and was the Chairman of the Federal Reserve of the United States from 1987 to
2006. He currently works as a private advisor, making speeches and providing
consulting for firms through his company, Greenspan Associates LLC.
First appointed Fed chairman by President
Ronald Reagan in August 1987, he was reappointed at successive four-year intervals
until retiring on January 31, 2006 after the second-longest tenure in the position.
He was lauded for his handling of the Black Monday October 19, 1987 stock market
crash, which occurred very shortly after he first became chairman, as well as
for his stewardship of the Internet-driven "dot-com" economic boom
of the 1990s. This expansion eventually ended in a burst in March 2000 leading
to an economic downturn, including negative GDP growth in the first quarter
of 2001.[1]
After 2001, some congressional leaders
and others criticized him, for certain statements they found to overstep the
Fed's traditional purview of monetary policy,[2] and for other statements they
saw as overly supportive of the policies of President George W. Bush. In 2004
Business Week Magazine criticized his keeping of low interest levels
too long and his concurrent praise of sub-prime lending vehicles such as ARMs
as leading to a housing bubble.[3] Some, including Nobel Prize-winning
economists Joseph E. Stiglitz and Paul Krugman, attribute a
large degree of culpability for the devastating Economic crisis of 2008 to Greenspan.
Stiglitz stated that Greenspan “didn't really believe in regulation; when
the excesses of the financial system were noted, (he and others) called for
self-regulation—an oxymoron.”[4] Greenspan, according to The New
York Times, says he refuses to blame himself.[5] Krugman has repeatedly
expressed his view that Greenspan is the person most responsible for the crisis.[citation
needed] However, on April 6, 2005 Greenspan called for a substantial increase
in the regulation of Fannie Mae and Freddie Mac: “Appearing before the
Senate Banking Committee, the Fed chairman, Alan Greenspan, said the enormous
portfolios of the companies - nearly a quarter of the home-mortgage market -
posed significant risks to the nation's financial system should either company
face significant problems.”[6] Despite this, Greenspan still claims to
be a firm believer in free markets. He was also nicknamed "the maestro"
after his tenure at the U.S. central bank coincided with a lengthy period of
strong economic growth.[7]
All considered, during his tenure
Greenspan was the leading authority on American domestic economic and monetary
policy, and his active influence continues.[8]
Contents [hide]
1 Biography
1.1 Greenspan and Objectivism
2 Chairman of the Federal Reserve
3 After the Federal Reserve
4 Housing "Bubble"
5 Economic Crisis of 2008
6 Political views and alleged politicization of office
7 Honors
8 Further reading
9 See also
10 References
11 External links
11.1 Criticism
[edit] Biography
This section needs additional citations for verification. Please help improve
this article by adding reliable references. Unsourced material may be challenged
and removed. (November 2008)
Greenspan was born in 1926
to a Hungarian Jewish family in the Washington Heights area of New York City.[9]
The family name was anglicized from the German and Yiddish surname Grünspan[citation
needed]. He studied clarinet at The Juilliard School from 1943 to 1944.[10]
He is an accomplished saxophone player who played with Stan
Getz.[11] While in college, he played in a jazz band[citation needed]. He then
attended New York University (NYU) and received a B.S. in Economics (summa cum
laude) in 1948 and an M.A. in Economics in 1950.[citation needed] Greenspan
went on to Columbia University, intending to pursue advanced economic studies,
but subsequently dropped out.[citation needed] At Columbia, Greenspan did study
economics under the tutelage of future Fed chairman Arthur Burns,
who constantly warned of the dangers of inflation.[12] Much later, in 1977,
NYU also awarded him a Ph.D. in Economics. He may not have done a dissertation,
normally required for that degree.[13]On December 14, 2005, he was awarded an
honorary Doctor of Commercial Science degree by NYU, his fourth degree from
that institution.[14]
In the early 1950s, Greenspan began
an association with famed novelist and philosopher Ayn Rand that would last
until her death in 1982.[15] He wrote for Rand’s newsletters and authored
several essays in her book Capitalism: The Unknown Ideal.[16] Rand stood beside
him at his 1974 swearing-in as Chair of the Council of Economic Advisers.[15]
From 1948 to 1953, Greenspan worked
as an economic analyst at The Conference Board, a business and industry oriented
think-tank in New York City.[citation needed] From 1955 to 1987, when he was
appointed as chairman of the Federal Reserve, Greenspan was chairman and president
of Townsend-Greenspan & Co., Inc., an economic consulting firm in New York
City, a 33-year stint interrupted only from 1974 to 1977 by his service as Chairman
of the Council of Economic Advisers under President Gerald Ford[citation needed].
In the summer of 1968, Greenspan agreed to serve Richard Nixon as his coordinator
on domestic policy in the nomination campaign.[17] Greenspan also has served
as a corporate director for Aluminum Company of America (Alcoa); Automatic Data
Processing, Inc.; Capital Cities/ABC, Inc.; General Foods, Inc.; J.P. Morgan
& Co., Inc.; Morgan Guaranty Trust Company of New York; Mobil Corporation;
and The Pittston Company.[18][19] He was a director of the Council on Foreign
Relations foreign policy organization between 1982 and 1988.[20] He also served
as a member of the influential Washington-based financial advisory body, the
Group of Thirty in 1984.
Alan Greenspan has been married twice.
His first marriage was to artist Joan Mitchell in 1952; the marriage ended in
annulment less than a year later. He dated newswoman Barbara Walters
in the late 1970s.[15] In 1984, Greenspan began dating journalist Andrea
Mitchell. Greenspan at the time was 58, and the also divorced Mitchell
was 20 years his junior. In 1997, they were married by Supreme Court Justice
Ruth Bader Ginsburg.[21]
[edit] Greenspan and Objectivism
Earlier image of Alan GreenspanGreenspan was initially a logical positivist[22]
but was converted to Objectivism by Nathaniel Branden. During the 1950s and
1960s Greenspan was a proponent of Ayn Rand's philosophy, writing articles for
Objectivist newsletters and contributing several essays for Rand's 1966 book
Capitalism: the Unknown Ideal including an essay supporting the gold standard.[23][24]
During the 1950s, Greenspan was one
of the members of Ayn Rand's inner circle, the Ayn Rand Collective, who read
Atlas Shrugged while it was being written. Rand nicknamed Greenspan "the
undertaker" because of his penchant for dark clothing and reserved
demeanor. Although Greenspan was once recognized as a proponent of laissez-faire
capitalism, some Objectivists find his support for a gold standard somewhat
incongruous or dubious,[citation needed] given the Federal Reserve's role in
America's fiat money system and endogenous inflation. He has come under criticism
from Harry Binswanger,[25] who believes his actions while at work for
the Federal Reserve and his publicly expressed opinions on other issues show
abandonment of Objectivist and free market principles. However, when
questioned in relation to this, he has said that in a democratic society individuals
have to make compromises with each other over conflicting ideas of how money
should be handled. He said he himself had to make such compromises, because
he believes that "we did extremely well" without a central bank and
with a gold standard.[26] Greenspan and Rand maintained a close relationship
until her death in 1982.[15]
In a congressional hearing on October
23, 2008 Greenspan admitted that his free-market ideology shunning certain regulations
was flawed.[27] This has caused backlash from Objectivist intellectuals, blaming
the economic crisis on Greenspan's pandering to the mixed economy and betraying
his laissez-faire views.[28]
[edit] Chairman of the Federal Reserve
On June 2, 1987, President Reagan nominated Dr. Greenspan as a successor to
Paul Volcker as chairman of the Board of Governors of the Federal
Reserve, and the Senate confirmed him on August 11, 1987. After the nomination,
bond markets experienced their biggest one-day drop in 5 years. Just two months
after his confirmation he was faced with his first crisis—the 1987 stock
market crash. Noted investor, author and commentator Jim Rogers has
claimed that Alan Greenspan has lobbied to get this chairmanship [29]
His terse statement that the Fed
"affirmed today its readiness to serve as a source of liquidity to support
the economic and financial system" [30][31][32] is seen by many as having
been effective in helping to control the damage from that crash.
His handling of monetary policy in
the run-up to the 1991 recession was criticized from the right as being excessively
tight, and costing George H. W. Bush re-election. The incoming Democratic president
Bill Clinton reappointed Alan Greenspan, and kept him as a core member of his
economic team. Greenspan, while still fundamentally monetarist in orientation,
argued that doctrinaire application of theory was insufficiently flexible for
central banks to meet emerging situations.
Another famous example of the effect
of his closely parsed comments was his December 5, 1996 remark about "irrational
exuberance and unduly escalating stock prices" that led Japanese stocks
to fall 3.2%.[33]
During the Asian financial crisis
of 1997-1998, the Federal Reserve flooded the world with dollars, and organized
a bailout of Long-Term Capital Management. Some have argued that 1997-1998 represented
a monetary policy bind—as the early 1970s had represented a fiscal policy
bind—and that while asset inflation had crept into the United States,
demanding that the Fed tighten, the Federal Reserve needed to ease liquidity
in response to the capital flight from Asia. Greenspan himself noted this when
he stated that the American stock market showed signs of irrationally high valuations.
In 2000, Alan Greenspan raised interest
rates several times; these actions were believed by many to have caused the
bursting of the dot-com bubble. In autumn of 2001, as a decisive
reaction to September 11th attacks and the various corporate scandals which
undermined the economy, the Greenspan-led Federal Reserve initiated a series
of interest cuts that brought down the Federal Funds rate to 1% in 2004.
His critics, notably Steve Forbes attributed the rapid rise in commodity prices
and gold to Greenspan's loose monetary policy which is causing excessive asset
inflation and a weak dollar. By late 2004 the price of gold was higher than
its 12-year moving average.
On May 18, 2004, Greenspan was nominated
by President George W. Bush to serve for an unprecedented fifth term as chairman
of the Federal Reserve. He was previously appointed to the post by Presidents
Ronald Reagan, George H. W. Bush and Bill Clinton.
Greenspan's term as a member of the
Board ended on January 31, 2006, and Ben Bernanke was confirmed
as his successor.
Alan Greenspan is blamed by the followers
of the Austrian School for creating excessive liquidity which caused lending
standards to deteriorate resulting in the housing bubble of 2004-2006 and the
market meltdown beginning in 2008. Currently the American Federal Reserve follows
a modified form of monetarism, where broader ranges of intervention are possible
in light of temporary instabilities in market dynamics.
[edit] After the Federal Reserve
On February 26, 2007, Greenspan forecast a possible recession in the U.S. before
or in early 2008.[34] Stabilizing corporate profits are said to have influenced
his comments. The following day, the Dow Jones Industrial Average closed at
12,216.24 dropping by 416 points and losing 3.3% of its value, the worst one
day loss, at the time, since September 17, 2001, when the Dow Jones lost 684
points (7.1%) after reopening in the wake of the 9/11 terrorist attacks.[citation
needed]
In mid-January 2008, hedge fund Paulson
& Co hired Alan Greenspan as an adviser on economic issues and monetary
policy.[35] This is the third private role given to Alan Greenspan, the first
two being given by Deutsche Bank and bond investment company Pacific Investment
Management (PIMCO). Greenspan advises Paulson & Co on economics issues surrounding
United States and world financial markets.[36]
Greenspan also counsels on monetary
policy and falling housing prices and about a possible recession in the United
States. Paulson & Co is famously known for its record profit making during
2007 by conducting bets against mortgage derivatives which earned the
firm billions of dollars last year. The financial terms of the agreement
were not disclosed and Greenspan must not, under the agreement, advise any other
hedge fund manager while working for Paulson.[36] In February 2008, Greenspan
spoke at the Jeddah Economic Forum.[37]
Greenspan wrote in the week of March
17, 2008 that the 2008-financial crisis in the United States is likely to be
judged as the most wrenching since the end of World War II.[38]
Greenspan also now works as a private
advisor making speeches and providing consulting for firms through his company,
Greenspan Associates LLC. Directly following his retirement as Fed chairman,
Greenspan accepted an honorary (unpaid) position at HM Treasury in the United
Kingdom. In May 2007, Greenspan was hired as a special consultant by PIMCO to
participate in Pimco’s quarterly economic forums and speak privately with
the bond manager about Fed interest rate policy.[39] In August 2007, Deutsche
Bank announced that it would be retaining Greenspan as a Senior Advisor to its
investment banking team and clients.[40]
He has written his memoir, titled
The Age of Turbulence: Adventures in a New World, published September 17, 2007.[41][15][21]
Greenspan says that he wrote this book in longhand mostly while soaking in the
bathtub, a habit he regularly employs ever since an accident in 1971, when he
injured his back.[42] Greenspan discusses in his book, among other things, his
history in government and economics, capitalism and other modes of economies,
current issues in the global economy, and future issues that face the global
economy. In the book Greenspan criticizes President George W. Bush, Vice President
Dick Cheney, and the Republican-controlled Congress for abandoning the Republican
Party's principles on spending and deficits. Greenspan's criticisms of President
Bush include his refusal to veto spending bills, sending the country into increasingly
deep deficits, and for "putting political imperatives ahead of sound economic
policies".[43] Greenspan writes, "They swapped principle for power.
They ended up with neither. They deserved to lose [the 2006 election]."[42][44]
Of all the presidents with whom he worked, he praises Bill Clinton above all
others, saying that Clinton maintained “a consistent, disciplined focus
on long-term economic growth.”[45] Although he respected what he saw as
Richard Nixon's immense intelligence, Greenspan found him to be "sadly
paranoid, misanthropic and cynical." He said of Gerald Ford that he "was
as close to normal as you get in a president, but he was never elected."[44]
[edit] Housing "Bubble"
In the wake of the subprime mortgage and credit crisis in 2007, Greenspan admitted
that there was a bubble in the US housing market, warning in 2007 of "large
double digit declines" in home values "larger than most people expect."[46]
However, Greenspan also noted, "I really didn't get it until very late
in 2005 and 2006."[47]
Greenspan admitted that the housing
bubble was “fundamentally engendered by the decline in real long-term
interest rates”,[48] though he also claims that long-term interest rates
are beyond the control of central banks because "the market value of global
long-term securities is approaching $100 trillion" and thus these and other
asset markets are large enough that they "now swamp the resources of central
banks."[49]
Following the September 11, 2001
attacks, the Federal Open Market Committee voted to reduce the federal funds
rate from 3.5% to 3.0%.[50] Then, after the accounting scandals of 2002, the
Fed dropped the federal funds rate from then current 1.25% to 1.00%.[51] Greenspan
acknowledged that this drop in rates would have the effect of leading to a surge
in home sales and refinancing.
Besides sustaining the demand for
new construction, mortgage markets have also been a powerful stabilizing force
over the past two years of economic distress by facilitating the extraction
of some of the equity that homeowners have built up over the years.[51]
However, Greenspan's policies of adjusting interest rates to historic lows contributed
to a housing bubble in the US. The Federal Reserve acknowledges the connection
between lower interest rates, higher home values, and the increased liquidity
the higher home values bring to the overall economy.
Like other asset prices, house prices
are influenced by interest rates, and in some countries, the housing market
is a key channel of monetary policy transmission. —Board of Governors
of the Federal Reserve System, September 2005.[52]
In a speech in February 2004, [5] Greenspan suggested that more homeowners should
consider taking out Adjustable Rate Mortgages (ARMs) where the interest rate
adjusts itself to the current interest in the market.[53] The fed own funds
rate was at an all-time-low of 1%. A few months after his recommendation, Greenspan
began raising interest rates, in a series of rate hikes that would bring the
funds rate to 5.25% about two years later.[54] A triggering factor in the 2007
subprime mortgage financial crisis is believed to be the many subprime ARMs
that reset at much higher interest rates than what the borrower paid during
the first few years of the mortgage.
In 2008, Greenspan expressed
great frustration that his 23 February 2004 speech was used to criticize him
on ARMs and the subprime mortgage crisis, and stated that he had made
countervailing comments eight days after it that praised traditional fixed-rate
mortgages.[55]
In that speech on February 23, 2004,
Greenspan had suggested that lenders should offer to home purchasers a greater
variety of "mortgage product alternatives" other than traditional
fixed-rate mortgages.[56] Greenspan also praised the rise of
the subprime mortgage industry and the tools which it uses to assess credit-worthiness
in an April 2005 speech:
Innovation has brought about a multitude
of new products, such as subprime loans and niche credit programs for immigrants.
Such developments are representative of the market responses that have driven
the financial services industry throughout the history of our country …
With these advances in technology, lenders have taken advantage of credit-scoring
models and other techniques for efficiently extending credit to a broader spectrum
of consumers. … Where once more-marginal applicants would simply have
been denied credit, lenders are now able to quite efficiently judge the risk
posed by individual applicants and to price that risk appropriately. These improvements
have led to rapid growth in subprime mortgage lending; indeed, today subprime
mortgages account for roughly 10 percent of the number of all mortgages outstanding,
up from just 1 or 2 percent in the early 1990s.[57]
The subprime mortgage industry collapsed in March 2007, with
many of the largest lenders filing for bankruptcy protection in the face of
spiraling foreclosure rates. For these reasons, Greenspan has been criticized
for his role in the rise of the housing bubble and the subsequent problems in
the mortgage industry,[58][59] as well as "engineering" the housing
bubble itself:
It was the Federal Reserve-engineered
decline in rates that inflated the housing bubble … the most troublesome
aspect of the price runup is that many recent buyers are squeezing into houses
that they can barely afford by taking advantage of the lower rates available
from adjustable-rate mortgages. That leaves them fully exposed to rising rates.
—BusinessWeek, July 19, 2004, Is A Housing Bubble About To Burst?[60]
George Soros and Warren Buffett criticized derivatives while Greenspan
defended them.[61]
[edit] Economic Crisis of 2008
This section documents a current event. Information may change rapidly as the
event progresses.
On March 17, 2008, Alan Greenspan
wrote an article for the Financial Times' Economists’ Forum entitled “We
will never have a perfect model of risk“ in which he argued: “We
will never be able to anticipate all discontinuities in financial markets.”
He concluded: “It is important, indeed crucial, that any reforms in, and
adjustments to, the structure of markets and regulation not inhibit our most
reliable and effective safeguards against cumulative economic failure: market
flexibility and open competition.”[62]
The article attracted a number of
critical responses from forum contributors, which consists of some of the world’s
leading economists (including two Nobel Memorial Prize in Economic Sciences
winners, Edmund Phelps and Joseph Stiglitz), who, finding causation between
Greenspan's policies and the discontinuities in financial markets that followed,
criticized Greenspan mainly for what many believed to be his unbalanced and
immovable ideological suppositions about global capitalism and free competitive
markets. For example, one forum contributor, Paul de Grauwe, wrote: “Greenspan’s
article is a smokescreen to hide his own responsibility in making the financial
crisis possible. Greenspan, who was at the helm of the most important monetary
institution in the world, failed to take his responsibility to supervise the
financial markets blinded as he, and his colleagues, were by a belief that markets
and bankers know better than governments.” Other notable critics included
J. Bradford DeLong, Alice Rivlin, Richard Werner, Christopher Whalen, Michael
Hudson, and Willem Buiter.[63]
On April 6, Greenspan responded to
his critics in a follow-up article entitled “A response to my critics”
in which he rigorously defended his ideology as applied to his conceptual and
policy framework, which, among other things, prohibited him from exerting real
pressure against the burgeoning housing bubble or, in his words, "leaning
against the wind" (which became a catchphrase used during the discussion).
Greenspan argued, "My view of the range of dispersion of outcomes has been
shaken, but not my judgment that free competitive markets are by far the unrivaled
way to organize economies." He concluded: "We have tried regulation
ranging from heavy to central planning. None meaningfully worked. Do we wish
to retest the evidence?"[64]
On April 9, the Financial Times associate
editor and chief economics commentator, Martin Wolf, responded to the discussion
with an article entitled “Why Greenspan does not bear most of the blame,”
defending Greenspan primarily as a scapegoat for the market turmoil. Several
notable contributors in defense of Greenspan included Stephen Roach, Allan Meltzer,
and Robert Brusca.[65]
On October 15, 2008, Anthony Faiola,
Ellen Nakashima and Jill Drew wrote a lengthy article in the Washington Post
titled "What Went Wrong"[6]. In their investigation, the authors claim
that Greenspan vehemently opposed any regulation of financial instruments
known as derivatives. They further claim that Greenspan actively sought to undermine
the office of the Commodity Futures Trading Commission, specifically under the
leadership of Brooksley E. Born, when the Commission sought to initiate regulation
of derivatives.
In Congressional testimony on October
23, 2008, Greenspan acknowledged that he was "partially" wrong in
opposing regulation and stated "Those of us who have looked to the self-interest
of lending institutions to protect shareholder's equity -- myself especially
-- are in a state of shocked disbelief."[27] Referring to his free-market
ideology, Greenspan said: “I have found a flaw. I don’t know how
significant or permanent it is. But I have been very distressed by that fact.”
Rep. Henry Waxman (D-CA) then pressed him to clarify his words. “In other
words, you found that your view of the world, your ideology, was not right,
it was not working,” Waxman said. “Absolutely, precisely,”
Greenspan replied. “You know, that’s precisely the reason I was
shocked, because I have been going for 40 years or more with very considerable
evidence that it was working exceptionally well.” [66] Greenspan admitted
fault in opposing regulation of derivatives and acknowledged that financial
institutions didn't protect shareholders and investments as well as he expected.
During testimony, Rep. John Yarmuth (D-KY) compared Greenspan to Bill Buckner,
the Boston Red Sox first baseman whose fielding error caused the team's loss
in the 1986 World Series.[27]
[edit] Political views and alleged politicization of office
Greenspan describes himself as a “lifelong Libertarian Republican,”
although his actions while Fed chairman belie this statement.[67]
In March 2005, in reaction
to Greenspan's support of President Bush's plan to partially privatize Social
Security, Democratic Senate Minority Leader Harry Reid attacked Greenspan
as “one of the biggest political hacks we have in Washington” [68]
and criticized him for supporting Bush's 2001 tax cut plan.[69] Then-Democratic
House Minority Leader Nancy Pelosi added that there were serious questions about
the Fed's independence as a result of Greenspan's public statements.[70] Greenspan
also received criticism from Democratic Congressman Barney Frank and others
for supporting Bush's Social Security plans in favor of private accounts.[71][72][73]
Greenspan had said Bush's model has "the seeds of developing full funding
by its very nature. As I've said before, I've always supported moves to full
funding in the context of a private account."[74]
Others, like Republican Senator Mitch
McConnell, disagreed that Greenspan was too deferential to Bush, stating that
Greenspan “has been an independent player at the Fed for a long time under
both parties and made an enormous positive contribution”.[75]
Economist Paul Krugman wrote
that Greenspan was a “three-card maestro” with a “lack of
sincerity” who, “by repeatedly shilling for whatever the Bush administration
wants, has betrayed the trust placed in the Fed chairman”.[76]
Republican Senator Jim Bunning, who
opposed Greenspan's fifth reconfirmation, charged that Greenspan should comment
only on monetary policy, not fiscal policy.[77] However, Greenspan had used
his position as Fed Chairman to comment upon fiscal policy as early as 1993,
when he supported President Clinton's deficit reduction plan, which included
tax hikes and budget cuts.[78]
In 1997, the Wall Street Journal
editorial page asserted that Greenspan believed one of his jobs as Chairman
was to maintain a high enough level of worker insecurity to discourage employees
from demanding pay raises and benefit increases.[79]
[edit] Honors
President George W. Bush presents the Presidential Medal of Freedom to Alan
Greenspan, on November 9, 2005 in the East Room of the White House.Greenspan
was awarded the Presidential Medal of Freedom, the highest civilian award in
the United States, by President George W. Bush in November 2005.[80] His honorary
titles include Knight Commander of the British Empire, bestowed in 2002 and
Commander of the Légion d'honneur (Legion of Honor). In 2006, Greenspan
was awarded the Department of Defense Medal for Distinguished Public Service.[81]
In 2004, Greenspan received the Dwight
D. Eisenhower Medal for Leadership and Service, from Eisenhower Fellowships.
In 2005, he became the first recipient of the Harry S. Truman Medal for Economic
Policy, presented by the Harry S. Truman Library Institute. In 2007, Greenspan
was the recipient of the inaugural Thomas Jefferson Foundation Medal in Citizen
Leadership, presented by the University of Virginia.
http://en.wikipedia.org/wiki/Henry_Paulson
Henry Paulson
From Wikipedia, the free encyclopedia
Jump to: navigation, search
The neutrality of this article is disputed.
Please see the discussion on the talk page. (October 2008)
Please do not remove this message until the dispute is resolved.
Henry M. Paulson
--------------------------------------------------------------------------------
74th United States Secretary of the
Treasury
In office
July 3, 2006 – January 20, 2009
President George W. Bush
Preceded by John W. Snow
Succeeded by Timothy Geithner
--------------------------------------------------------------------------------
Born March 28, 1946 (1946-03-28) (age 62)
Palm Beach, Florida
Political party Republican (United States)
Spouse Wendy Paulson
Children Henry Merritt Paulson III
Amanda Clark Paulson
Alma mater Dartmouth College, Harvard University
Profession Investment banker
Religion Christian Science
Signature
Henry Merritt "Hank" Paulson Jr. (born March 28, 1946) served as the
74th United States Treasury Secretary and is a member of the International Monetary
Fund Board of Governors. He previously served as the Chairman and Chief Executive
Officer of Goldman Sachs. In 2008, Time magazine named Paulson as a runner-up
for its Person of the Year 2008, saying, with reference to the Global Financial
Crisis of 2008: "if there is a face to this financial debacle, it is now
his".
Contents [hide]
1 Early life and family
2 Early career
3 Goldman Sachs
4 U.S. Secretary of the Treasury
4.1 Notable statements
4.2 U.S. government economic bailout of 2008
4.2.1 Conflict of interest claims
5 Civic activities
6 References
7 Further reading
8 External links
[edit] Early life and family
He was born in Palm Beach, Florida, to Marianna Gallauer and Henry Merritt Paulson,
a wholesale jeweler.[1] He was raised in Barrington Hills, Illinois as a Christian
Scientist.[2] Paulson attained the rank of Eagle Scout in the Boy Scouts of
America.[3][4]
A star athlete at Barrington High
School, Paulson was a champion wrestler and stand-out football player, graduating
in 1964. Paulson received his Bachelor of Arts in English from Dartmouth College
in 1968;[5] at Dartmouth he was a member of Phi Beta Kappa and Sigma Alpha Epsilon
and he was an All Ivy, All East, and honorable mention All American as an offensive
lineman.
He met his wife Wendy during his
senior year. The couple have two adult children, Henry Merritt III and Amanda
Clark, and became grandparents in June 2007. They maintain homes in Washington,
DC and Barrington Hills, Illinois.
In 1970 Paulson received a Master
of Business Administration degree from Harvard Business School.[6]
[edit] Early career
Paulson was Staff Assistant to the Assistant Secretary of Defense at The Pentagon
from 1970 to 1972.[7] He then worked for the administration of U.S. President
Richard Nixon, serving as assistant to John Ehrlichman from 1972 to 1973, during
the events of the Watergate scandal for which Ehrlichman was convicted, and
sentenced to prison.
[edit] Goldman Sachs
He joined Goldman Sachs (Rothschild and Rockefeller) in 1974,
working in the firm's Chicago office under James P. Gorter. He became a partner
in 1982. From 1983 until 1988, Paulson led the Investment Banking group for
the Midwest Region, and became managing partner of the Chicago office in 1988.
From 1990 to November 1994, he was co-head of Investment Banking, then, Chief
Operating Officer from December 1994 to June 1998;[8] eventually succeeding
Jon Corzine (now Governor of New Jersey) as its chief executive. His compensation
package, according to reports, was US $37 million in 2005, and US $16.4 million
projected for 2006.[9] His net worth has been estimated at over US $700 million.[9]
Paulson has personally built close relations with China during his career. In
July 2008 it was reported by The Daily Telegraph that: "Treasury Secretary
Hank Paulson has intimate relations with the Chinese elite, dating from his
days at Goldman Sachs when he visited the country more than 70 times."[10]
In 2004, at the request of the major
Wall Street investment houses, including Goldman Sachs, then headed by Paulson,
the U.S. Securities and Exchange Commission agreed unanimously to release the
major investment houses from the net capital rule, the requirement that their
brokerages hold reserve capital that limited their leverage and risk exposure.
The complaint that was put forth by the investment banks was of increasingly
onerous regulatory requirements -- in this case, not U.S. regulator oversight,
but European Union regulation of the foreign operations of US investment groups.
In the immediate lead-up to the decision, EU regulators also acceded to US pressure,
and agreed not to scrutinize foreign firms' reserve holdings if the SEC agreed
to do so instead. The 1999 Gramm-Leach-Bliley Act, however, put the parent holding
company of each of the big American brokerages beyond SEC oversight. In order
for the agreement to go ahead, the investment banks lobbied for a decision that
would allow "voluntary" inspection of their parent and subsidiary
holdings by the SEC.
During this repeal of the net capital
rule, SEC Chairman William H. Donaldson agreed to the establishment of a risk
management office that would monitor signs of future problems. This office was
eventually dismantled by Chairman Christopher Cox, after discussions with Paulson.
According to the New York Times, "While other financial regulatory agencies
criticized a blueprint by Mr. Paulson, the Treasury secretary, that proposed
to reduce their stature — and that of the S.E.C. — Mr. Cox did not
challenge the plan, leaving it to three former Democratic and Republican commission
chairmen to complain that the blueprint would neuter the agency."[11] In
late September 2008, Chairman Cox and the other Commissioners agreed to end
the 2004 program of voluntary regulation.
[edit] U.S. Secretary of the Treasury
Paulson (right) with President George W. Bush as his nomination to become Treasury
Secretary is announced.Paulson was nominated by U.S. President George W. Bush
to succeed John Snow as the Treasury Secretary on May 30, 2006.[12] On June
28, 2006, he was confirmed by the United States Senate to serve in the position.[13]
Paulson was officially sworn in at a ceremony held at the Treasury Department
on the morning of July 10, 2006.
Paulson's three immediate predecessors
as CEO of Goldman Sachs — Jon Corzine, Stephen Friedman, and Robert Rubin
— each left the company to serve in government: Corzine as a U.S. Senator
(later Governor of New Jersey), Friedman as chairman of the National Economic
Council (later chairman of the President's Foreign Intelligence Advisory Board)
under President George W. Bush, and Rubin as both chairman of the NEC and later
Treasury Secretary under President Bill Clinton.[14]
Paulson identified the wide gap between
the richest and poorest Americans as an issue on his list of the country's four
major long-term economic issues to be addressed, highlighting the issue in one
of his first public appearances as Secretary of Treasury.[15]
Paulson conceded that chances were
slim for agreeing on a method to reform Social Security financing, but said
he would keep trying to find bipartisan support for it.[16]
He also helped to create the Hope
Now Alliance to help struggling homeowners during the subprime mortgage crisis.[17]
[edit] Notable statements
In Spring 2007, Secretary Paulson told an audience at the Shanghai Futures Exchange
that "An open, competitive, and liberalized financial market can effectively
allocate scarce resources in a manner that promotes stability and prosperity
far better than governmental intervention."[18]
In August 2007, Secretary Paulson
explained that U.S. subprime mortgage fallout remained largely contained due
to the strongest global economy in decades.[19]
On July 20, 2008, after the failure
of Indymac Bank, Paulson reassured the public by saying, “it's a safe
banking system, a sound banking system. Our regulators are on top of it. This
is a very manageable situation.”[20]
On August 10, 2008, Secretary Paulson
told NBC’s Meet the Press that he had no plans to inject any capital into
Fannie Mae or Freddie Mac.[21] On September 7, 2008, both Fannie Mae and Freddie
Mac went into conservatorship.[22]
[edit] U.S. government economic bailout of 2008
Paulson was the designated leader of the Bush administration's efforts in 2008
to nationalize the cost of bad loans made by financial institutions.
Through unprecedented intervention
by the U.S. Treasury, Paulson led government efforts which he said were aimed
at avoiding a severe economic slowdown. He pushed through the conservatorship
of government agency mortgage giants Fannie Mae and Freddie Mac. Working with
Federal Reserve Chairman Ben Bernanke, he influenced the decision to create
a credit facility (bridge loan & warrants) of US$85 billion to American
International Group so it would avoid filing bankruptcy.
In late September 2008, Paulson,
along with Federal Reserve Chairman Ben Bernanke, led the effort to help financial
firms by agreeing to use US$700 billion dollars to purchase bad debt they had
incurred.[23] He incurred criticism from economists for initially refusing to
consider injecting large amounts of cash into financial institutions directly
by purchasing stock, an option which other countries in similar circumstances
have pursued.[24] This was the option favored by Federal Reserve Chairman Bernanke,
and one that was eventually followed. [25]
On September 19, 2008, Paulson called
for the U.S. government to use hundreds of billions of Treasury dollars to help
financial firms cleanup nonperforming mortgages that threaten the liquidity
of those firms.[26] Due to his leadership and public appearances on this issue,
the press labeled these measures the "Paulson financial rescue plan"
or simply the Paulson Plan.[27]
With the passage of H.R. 1424, he
became the manager of the United States Emergency Economic Stabilization fund.
As Treasury Secretary, Paulson also
sat on the newly established Financial Stability Oversight Board that oversees
the Troubled Assets Relief Program.
[edit] Conflict of interest claims
It has been pointed out that Paulson's plan could potentially have some conflicts
of interest, since Paulson is the former CEO of Goldman Sachs, a firm that may
benefit largely from the plan.[28] Paulson has no direct financial interest
in Goldman, however, since he sold his entire stake in the firm prior to becoming
Treasury Secretary, pursuant to ethics law.[29] The sale was tax-deferred and
netted near $200,000,000 in tax benefits to Mr Paulson, resulting in questioning
of the motives of his joining the government. [30] Despite this, opponents argue
that Paulson remains a Wall Street insider and still maintains close friendships
with higher-ups of the bailout beneficiaries. The proposed bill would give the
United States Treasury Secretary unprecedented powers over the economic and
financial life of the U.S. Section 8 of Paulson’s original plan stated:
"Decisions by the Secretary pursuant to the authority of this Act are non-reviewable
and committed to agency discretion, and may not be reviewed by any court of
law or any administrative agency."[31]. For that reason, many bloggers
refer to Mr. Paulson as "King Henry." [32] After the passage of this
bill, the press has recently reported that the Treasury is now proposing to
use these funds ($700 billion) in ways other than was originally intended in
the bill.[33].
[edit] Civic activities
Paulson has been described as an avid nature lover.[34] He has been a member
of The Nature Conservancy for decades and was the organization's board chairman
and co-chair of its Asia-Pacific Council.[7] In that capacity, Paulson worked
with former President of the People's Republic of China Jiang Zemin to preserve
the Tiger Leaping Gorge in Yunnan province.
Paulson is also on the Board of Directors
of the Peregrine Fund; was the founding Chairman of the Advisory Board of the
School of Economics and Management of Tsinghua University in Beijing; and, previously
served as chairman of the influential trade group, the Financial Services Forum.
Notable among the members of Bush's
cabinet, Paulson has said he is a strong believer in the effect of human activity
on global warming and advocates immediate action to decrease this effect.[35]
During his tenure as CEO of Goldman
Sachs, Paulson oversaw the corporate donation of 680,000 acres (2,800 km2) forested
on the Chilean side of Tierra del Fuego, which led to criticisms from Goldman
shareholder groups[36]. He further donated US$100 million of assets from his
wealth to conservancy causes. He pledged his entire fortune for the same purpose
at death.[37] He has also been considered someone who can influence world and
business leaders to think beyond the bottom line.[38]
http://en.wikipedia.org/wiki/Timothy_Geithner
Timothy F. Geithner
From Wikipedia, the free encyclopedia
(Redirected from Timothy Geithner)
Jump to: navigation, search
"Geitner" redirects here. For other uses, see Geitner (disambiguation).
Timothy F. Geithner
--------------------------------------------------------------------------------
75th United States Secretary of the
Treasury
Incumbent
Assumed office
January 26, 2009
President Barack Obama
Preceded by Henry Paulson
--------------------------------------------------------------------------------
9th President of the Federal Reserve
Bank of New York
In office
November 17, 2003 – January 26, 2009
Preceded by William McDonough
Succeeded by William Dudley
--------------------------------------------------------------------------------
Born August 18, 1961 (1961-08-18) (age 47)
Brooklyn, New York, USA
Nationality American
Political party Independent
Spouse Carole M. Sonnenfeld
Children Elise and Benjamin Geithner
Alma mater Paul H. Nitze School of Advanced International Studies (MA)
(Rothschilds and Rockefellers)
Dartmouth College (BA)
Occupation Civil Servant
Timothy Franz Geithner [pronounced /'ga?tn?r/] (born August 18, 1961) is the
75th and current United States Secretary of the Treasury, serving under President
Barack Obama. He was previously the president of the Federal Reserve
Bank of New York. (Rothschilds and Rockefellers)
Geithner's position includes a large
role in directing the nation's economic response to the financial crisis which
began in 2007. Specific tasks include directing how $350 billion of Wall Street
bailout money is allocated.
Geithner's nomination came under
fire due to his failure to pay $34,000 in overdue taxes. Geithner received Senate
confirmation, but he was criticized for not following the rules of the Internal
Revenue Service, which is a child agency of the Treasury Department he now oversees.[1]
Contents [hide]
1 Biography
1.1 Early life and education
1.2 Early career
2 Secretary of the Treasury nomination
2.1 Tax problems
2.2 Confirmation
3 Bank bailout
4 Memberships
5 References
6 Further reading
7 External links
[edit] Biography
[edit] Early life and education
Geithner's paternal grandfather, Paul Herman Geithner (1902–1972), emigrated
with his parents from the German town of Zeulenroda to Philadelphia, Pennsylvania
in 1908.[2] His father, Peter F. Geithner, is the director of the Asia program
at the Ford Foundation in New York. During the early 1980s, Peter Geithner oversaw
the Ford Foundation's microfinance programs in Indonesia being developed by
Ann Dunham-Soetoro, Obama's mother, and they met in person
at least once.[3] Timothy Geithner's mother, Deborah Moore Geithner, is a pianist
and piano teacher in Larchmont, New York where his parents currently reside.
Geithner's maternal grandfather, Charles F. Moore, was an adviser to President
Dwight D. Eisenhower and served as a vice president of Ford Motor Company.[4]
Geithner was born in Brooklyn, New York.[5] He spent most of his childhood living
outside the United States, including present-day Zimbabwe, India and Thailand,
where he completed high school at International School Bangkok.[6] He then attended
Dartmouth College, graduating with an A.B. in government and Asian studies in
1983.[7] He earned an M.A. in international economics and East Asian studies
from Johns Hopkins University's School of Advanced International Studies in
1985.[7][8] He has studied Chinese[7] and Japanese.[9]
[edit] Early career
After completing his studies, Geithner worked for Kissinger and Associates
(Rothschilds and Rockefellers) in Washington, D.C., for three
years and then joined the International Affairs division of the U.S. Treasury
Department in 1988. He went on to serve as an attache at the US Embassy in Tokyo.
He was deputy assistant secretary for international monetary and financial policy
(1995–1996), senior deputy assistant secretary for international affairs
(1996-1997), assistant secretary for international affairs (1997–1998).[8]
He was Under Secretary of the Treasury
for International Affairs (1998–2001) under Treasury Secretaries Robert
Rubin and Lawrence Summers.[8] Summers was his mentor,[10][11] but other sources
call him a Rubin protégé.[11][12][13]
Treasury Secretary designee Geithner meets Finance Committee Chairman
Max Baucus ( Nephew murdered by LG Administration) on November 25,
2008In 2002 he left the Treasury to join the Council on Foreign Relations
as a Senior Fellow in the International Economics department.[14] He was director
of the Policy Development and Review Department (2001-2003) at the International
Monetary Fund.[8] Rothschilds and Rockefellers
In October 2003,
he was named president of the Federal Reserve Bank of New York.Rothschilds
and Rockefellers [15] His salary in 2007 was $398,200.[16] Once at
the New York Fed, he became Vice Chairman of the Federal Open Market Committee
component. His somewhat caustic and arbitrary management style was often evidenced
during his tenure with the Federal Reserve. In 2006, he also became a member
of the Washington-based financial advisory body, the Group of Thirty.[17]
In March 2008, he arranged the rescue
and sale of Bear Stearns;[10][18] in the same year, he is believed to have played
a pivotal role in both the decision to bail out AIG as well as the government
decision not to save Lehman Brothers from bankruptcy.[19] As a Treasury official,
he helped manage multiple international crises of the 1990s[12] in Brazil, Mexico,
Indonesia, South Korea and Thailand.[13]
Wikinews has related news: Obama's
choice for Treasury issues warning on China
Geithner believes, along with Henry Paulson, that the United States Department
of the Treasury needs new authority to experiment with responses to the financial
crisis of 2008.[10] Paulson has described Geithner as "[a] very unusually
talented young man...[who] understands government and understands markets."[18]
In a written statement, Geithner
said that China is "manipulating" its currency by purposefully keeping
its value low in order to make its exported products seem cheaper on the world
market.[20] The Obama Administration would pressure China diplomatically to
change this practice,[20] more strongly than the George W. Bush Administration
did.[21] The United States maintains that China's actions hurt American businesses
and contributed to the financial crisis.[22]
[edit] Secretary of the Treasury nomination
Main article: Confirmations of Barack Obama's Cabinet
On November 24, 2008, President-elect Barack Obama announced his intention to
nominate Geithner to be Treasury Secretary.[23][24]
[edit] Tax problems
At the Senate confirmation hearings, it was revealed that Geithner had not paid
$35,000 in self-employment taxes for several years,[25] even though he had acknowledged
his obligation to do so, and had filed a request for, and received, a payment
for half the taxes owed. The failure to pay self-employment taxes was noted
during a 2006 audit by the Internal Revenue Service (IRS), in which Geithner
was assessed additional taxes of $14,847 for the 2003 and 2004 tax years. Geithner
also failed to pay the self-employment taxes for the 2001 and 2002 tax years
until after Obama expressed his intent to nominate Geithner to be Secretary
of Treasury.[26] He also deducted the cost of his children's sleep-away camp
as a dependent care expense, when only expenses for day care are eligible for
the deduction.[27] Geithner subsequently paid the IRS the additional taxes owed,[28]
and was charged $15,000 interest, but was not fined for late payment.[29]As
President of the Federal Reserve Bank of New York, Geithner, as all FRB employees,
annually completed an ethics statement noting any taxes due or unpaid, along
with any other obligations. Geithner's completed statement did not surface during
confirmation hearings.
In a statement to the Senate panel
considering his nomination, Geithner called the tax issues "careless,"
"avoidable" and "unintentional" errors, and he said he wanted
to "apologize to the committee for putting you in the position of having
to spend so much time on these issues."[28] Geithner testified that he
used TurboTax to prepare his own return and that the tax errors are his own
responsibility.[30] The Washington Post quoted a tax expert who said that TurboTax
has not been programmed to handle self-employment taxes when the user identifies
himself as being employed.[31] Geithner said at the hearing that he was always
under the impression that he was an employee, not a self-employed contractor,[31]
while he served as director of the Policy Development and Review Department
of the IMF.[8]
[edit] Confirmation
Geithner is sworn in as Treasury SecretaryOn January 26, 2009, the U.S. Senate
confirmed Geithner's appointment by a vote of 60–34.[32][33] Geithner
was sworn in as Treasury Secretary by Vice President Joseph Biden and witnessed
by President Barack Obama.[34]
[edit] Bank bailout
Geithner has the authority to decide what to do with the second tranche of $350
billion from the $700 billion banking bailout bill passed by Congress in October
2008. He does not need Congressional approval, but went to Congress on February
10-11 to explain his plans. He proposes to create one or more "bad banks"
to buy and hold toxic assets, using a mix of taxpayer and private money. He
also proposes to expand a lending program that would spend as much as $1 trillion
to cover the decline in the issuance of securities backed by consumer loans.
He further proposes to give banks new infusions of capital with which to lend.
In exchange, banks would have to cut the salaries and perks of their executives
and sharply limit dividends and corporate acquisitions. Criticism has centered
on what some see as the vagueness of his plans.[35][36][37]
[edit] Memberships
Center for Global Development - (Board of Directors) [38]
Council on Foreign Relations [14]
Economic Club of New York (trustee) [38]
Group of Thirty [17]
Bank for International Settlements (chairman) - Committee on payment and settlement
systems [8]