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Post details: Paul and Paulson

Paul and Paulson

The financial debacle that we are currently experiencing puts two men of very similar names but very different attitudes on the opposite sides of the opinion spectrum.

On the one hand we have Hank Paulson - the Treasure Secretary and former CEO of Goldman Sachs. That would be one of the largest investment banks which shamelessly peddled flimsy securities to unsuspecting investors, both home and abroad, while shorting the very same investment vehicles, knowing very well that most of the underlying mortgages were bound to fail as surely as any other pyramid scheme known to man.

On the other side there is Ron Paul - a Republican Congressman and former presidential candidate, who spent the last two years advocating sound money and warning about inherent dangers of easy credit, not the least of which is reckless spending. Endlessly expanding credit does create an illusion of wealth, but it is a fool's gold at best. Thanks to his understanding of monetary policy, Ron Paul was able to recognize the housing market fiasco at times when most market economists (and certainly other fellow presidential candidates) were still locked in the ignorant cheerleading mode. But very few chose to listen to him.

Now who do you think we should commission to lead us out of this mess?

Well, if you lived in a far far away Galaxy on some bizarre planet, where intelligent life forms watch stars rather than NASCAR, where killing your own species in the name of a loving superbeing would be regarded ridiculous and where solid work and skills might be rewarded more generously than accounting sleight of hand, then Ron Paul would probably be a pretty good guess. But here in the Solar System we do things differently. Why risk the expertise of a man who had foresight and commonsense of warning us against living above our means, when we can trust our collective check book with a man who has already pocketed a solid profit from the credit pimping that we are trying to eradicate. Let's give nearly absolute powers to a man whose personal integrity can be divined from the fact that merely weeks before he rushed into Congress begging for taxpayers money to avert the impending economic doom he repeatedly assured us that our financial system is "fundamentally strong".

But such is the nature of human race, I guess. We are like an alcoholic who wants to have that one last drink before quitting. Rather than facing the harsh reality of the credit hangover, we choose to follow the barman who just may pour us a glass of whiskey one more time. The man who gives us that warm cozy feeling that our economy is fundamentally strong. Until it isn't.


Comment from: Diane [Visitor]
Right on!
Permalink 10/14/08 @ 08:29

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