Wednesday, January 14, 2009

Change at the Treasury

You catch some of the money honey's exit interview with Henry Paulson? What a joke. Mr. Paulson, will you prefer to water ski or snow ski in retirement? Will you spend more time at the villa in Austria or Paraguay?

Here Maria, my dear journalistic juggernaut, are a few questions a novice like myself thought might just be appropriate to ask his eminence, Treasury Secretary Paulson.

1. How is it Mr. Secretary that as CEO of Goldman Sachs you could sell one security to clients out the front door, yet short sell, the same security you just sold, out the back door for the house account and hence your own pocket?

2. How is it Mr. Secretary, that as CEO of Goldman Sachs you could lobby for leverage limit restrictions to be removed, only to be rebuffed yet return years later only to get said restrictions removed, directly responsible for enhancing your income during these years and which directly led to Wall St.'s implosion, which you are now bailing out?

3. How is it Mr. Secretary that you
repeatedly told lawmakers that you did not plan to use bailout funds to inject capital directly into financial institutions. Privately, however, your staff was developing plans to do just that, and which you acknowledged in an interview?

4. How is it Mr. Secretary that having been on Wall St. and knowing all the players you can one day proclaim that the banking system is safe and sound, yet only to appear before lawmakers shortly after proclaiming and here is your quote "that we’re literally maybe days away from a complete meltdown of our financial system, with all the implications here at home and globally."?

This is just a start Maria. You can reach me at the above email if you need any other suggestions.
While on the subject Maria, when talking to Paulson and others of his ilk, why do you and your minions refer to him as "sir". I am not a disrespectful person but it strikes me as the irony of all ironies to refer to a thug, and make no mistake Maria, men like Paulson who are responsible for this mess are thugs, as sir. Maybe even an oxy moron, no?


Tim Geithner is President-Elect Obama's nominee for treasury secretary. So let me see if I got this straight cause I'm not the sharpest knife in the drawer.

Geithner failed to pay self-employment taxes for money he earned from 2001 to 2004 while working for the IMF. He paid some of these taxes in 2006 after the IRS discovered the discrepancy for taxes paid in 2003 and 2004.

Okay.

Then after Obama taps him for treasury he scurries over to pay the taxes for years 2001 and 2002, his first 2 years at the IMF, before anyone is the wiser.

Okay.

So the way I see it, he knows he was wrong and didn't pay and then pays for his last 2 years owing at the IMF when he gets busted by the IRS. But he doesn't' know he owes for the first 2 he was there (huh?), but then pays whats owing for those first 2 years only when the treasury gig comes up.

And the position Obama wants him for is Treasury Secretary right?... and not secretary in the true sense of the word, like the hard working ones who keep the vast majority of offices and executives in business running but I digress.

Wasn't Geithner head of the New York Fed? Doesn't the NY Fed preside over Wall St, which resides in his jurisdiction? Didn't those Investment banks under his watch create this toxic cess pool we find ourselves in?

Yup same guy.

Seems to me that Geithner is simply more of the same ol' same ol', status quo, back scratching, look the other way, take care of me and I'll take care of you bull we have had for decades. Call it anything you want just don't call it change, as it insults my room temp IQ.

How dare I say all this you exclaim !

Easy.

You see, unlike grovelling CNBC journalists (apologies to Rick Santelli, Diana Olick, and Phil Lebeau for using that phrase as they really are journalists), unlike the Keystone Cops at the SEC, unlike the spineless attorney generals, I am not beholden to men like Paulson, Rubin, Greenspan, Bernanke, et al.

I am not looking for a patsy appointment to the World Bank or the IMF. I am not looking to ride some coattails to a cushy job at the New York Fed like so many others. I try with all my might to call it like it is. Like it or not.

I hear the morning, noon and night crew on CNBC ridicule the bloggers as, to quote Carl Quintanilla, "they can write anything they want."

Well, not exactly Carl. I would humbly suggest that the majority of financial blogs, have higher ethical and professional standards than most of your grovelling, gopher, educationally elite co-workers Carl. Quite frankly, if real financial journalists did their job, most bloggers might have nothing to do and most assuredly would have no audience. Feel free to pass my comments on to Charlie Gasparino, who in addition to being a tireless worker, and decent journalist in his own right, knows very well the threat bloggers pose, hence his animosity to them.




Good speculating to you all and never forget that "an investor is a speculator who made a mistake and will not admit it".

Open Positions:
Long 2 units Ultrashort MSCI EAFE ticker EFU @ $89.80 stop at $89.80
Long 1 unit Ultrashort Financials ticker SKF @ $102.60 stop @ $102.60
Long 1 unit Ultrashort S&P500 ticker SDS @ $66.15 stop @ $66.15
Long 2 units Ultrashort Real Estate ticker SRS @ $55.23 stops @ $54.75/$55.670
Short 1 unit Darden ticker DRI @ $27.70 stop @ $28.70
Short 3 units Apollo Group ticker APOL @ $85.36 stop @ $88.61

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