Thursday, August 27, 2009

Did Paulson Tip Off Wall St Insiders that Bernanke Was Cutting Rates?

NyPo's John Crudele is suspicious:

What has been of particular interest to me is whether Paulson contacted his friends at Goldman after a lunch with Federal Reserve Chairman Ben Bernanke on Thurs., Aug. 16, 2007. That day Wall Street seemed to get wind of the idea that the Fed was planning to do something big, and stock prices rallied strongly at the very end of that trading session.

The very next morning Bernanke cut interest rates, the first of many such moves.
Goldman/Paulson activities from the day Paulson took the oath of office as Treasury Secretary to the day he left needs to be investigated.

Crudele also catches a curious comment from current Treasury Secretary Geithner:
And, in an interview with the Journal, Tim Geithner claimed the government never did anything to benefit Goldman.

But then he also admitted that Washington had been "forced to do extraordinary things and, frankly, offensive things to help save the economy."

Nobody bothered to ask about those "offensive" things and whether they had anything to do with Goldman.


  1. As much as I enjoy reading this blog (you do an absolutely fantastic job Mr. Wenzel) it's getting to the point where I can hardly stomach my pure disgust for our elected officials.

    How could we as a supposedly free country let this happen to us?

  2. That Geithner interview bothered me on a visceral level. I could only watch half of it before I gave up in disgust.