We all know the famous bail out plan which is going to be executed by the United States. 700 billion dollars are going to be poured in the markets because banks want liquidity and be rid of all the toxic assets. The man who has launched this idea was Henry Paulson. Henry Paulson is the 74th Secretary of the Treasury of the United States. I found out something about him very interesting in his official biography on the White House website.
We all know that Lehman Brothers collapsed and had been the only bank which had gone bankrupt. The official reason was that Lehman had to pay for all the banks and that the fourth investment bank in the world had to be an example for the market. We also know that Lehman Brothers and Goldman Sachs are very strong competitors and that each employee of one or another bank hated the other. This information is interesting when you know that Henry Paulson and all Secretaries of the Treasury of the United States before him were former chairmen and Chief Executive Officers at Goldman Sachs.
So I do not know if this is a coincidence that the only bank that had collapsed is Lehman Brothers when you know that the only man who could have saved this bank is a former chairman of Goldman Sachs, the avowed enemy. But it is a huge coincidence, isn't it ?
I feel that if Paulson had taken his definite revenge on Lehman Brothers, he had made a really big mistake because the bankruptcy of Lehman had been the starting point of this crisis. Therefore, if Paulson had saved Lehman Brothers, I think that the financial crisis could have been less hard than it is nowadays because it could have made the markets a bit more confident.
So do you feel that Paulson had made an example or do you find that coincidence is to big to be false ?
3 commentaires:
It is obvious that this could not be a mere coincidence, Paulson was biased when he had to choose like a God which bank was to be rescued ... And He rescued the one he used to be involved in ... What would have been its choice if he had worked in both banks ?
About the starting point of the crisis, I disagree with what you say, the crisis would have started with or without the bankruptcy of Lehman Brothers ..
Hugues
I feel that the crisis had started with Lehman. The US government did not instaure confidence without saving Lehman. Then, the brokers did not trust the governement anymore and so they sold their shares in banks. And we know well that confidence is the most important factor on the market.
how can you know and say that the crisis started with Lehman? To my mind it is a coincidence because even if that confidence "is the most important factor on the market", to repeat you, it is not the only factor.
i beleive that we have to improve our knowledge about this question. however, i find your article interressant and i wait with pleasure your answer..
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