Tuesday, November 29, 2011

Crony Capitalism in the Bush Presidency as Hank Paulson gave inside information before the fall of Fannie Mae

Although most of today's analysis has been on the massive amounts of crony capitalism taking place in the Obama administration with Solyndra and other green energy monies, we cannot forget that it was former Goldman Sachs CEO Hank Paulson who helped solidify an environment of insider information to friends while in the Bush White House.

Today, BusinessWeek's Michael Serrill and Jonathan Neumann have released a blockbuster report based on a FOIA response by the Treasury, which proves that in America rules are only for little people, that this country has been a banana republic for years, that Animal Farm was spot on, and gives excruciating detail of how Hank Paulson tipped off a select group of Goldman diaspora hedge fund managers about the eventual failure of Fannie and Freddie 7 weeks ahead of this information becoming public knowledge. The report basically is a summary of a meeting that took place at the offices of Eton Mindich's Eton Park headquarters on July 21, 2008, 7 days after his famous '“If you have a bazooka, and people know you have it, you're not likely to take it out," speech and 7 weeks before both GSEs effectively filed for bankruptcy and were put into conservatorship. - Zerohedge

For anyone who thinks that voting in a different political party to create change, your utopian hopes have been shattered.  Both parties, politicians, and members who make up their cabinets have been bought and paid for long before they got to their positions, and the payoffs for that power is a crony capitalism that hasn't been seen but in Banana Republics, or empires in thieir most corrupt state of existance.

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