Welcome to WSYK, What Should You Know, I am Ethan Block in What Should You know.
So we are going to do something a little bit different here today, one of our friends, Brent H. wrote in and said, “hay, can you do an episode on Henry Paulson? So when Brent comes up to you and ask if you know about Henry Paulson, this is what you should say.
Of course I know about Henry Paulson. Are you serious, are you talking about the US Treasury Secretary? The dude we just entrusted with $700 billion, ring any bells?
Paulson, who I like to call hanky-panky, or Henry that All-American College Football player Paulson, is a former Goldman Sachs CEO. Goldman Sachs? Being one of the last remaining investment bank—that is until few weeks ago. And now Goldman Sachs is transforming itself into a more conventional bank to ride out the economic turbulence.
And recently, when asked which job he like better a CEO of Goldman or US Treasury, Hank replied, “Oh, I had more fun at Goldman.” Really? But did Goldman entrust you with $700 billion? No, but they did gave him a crap ton of Goldman stock, which means if Goldman tanked during the current crisis, Hank’s future retirement will not be so flushed.
Enough with his past, so the bottom line is Hank got three months left on the job and we just gave him $700 billion dollars to architect on a larges government bailout and investment efforts ever. No need to fear Neil Cory is here, Hanks 35-year old assistant who would be put in-charge of the entire bailout effort—that is not bad for being 35 years old.
But that is not all, Hank is about to spend $250 billion buying for stocks in thousands of our nation’s financial institutions. One big bode of confidence that should help them sure up their capital phase, whatever that means. So, prepare them, the massive chunks of our country’s financial sector, whether you like it or not. “I like it, I like it, I like it.”
I mean, we already owned 80% of AIG and we sort of kind of almost own Fannie Mae and Freddie Mac, so what is a couple of thousand financial institutions? We are even crazier than that and I know that is so crazy already, that the new treasury secretary got have to pick up where Hank is off in January, when a new president moves into the White House. And now maybe a good time to ask yourself, what the—is the Treasury secretary.
Well you see, the Treasury Secretary oversees the Treasury, but everybody knows that. The guy manages the manufacturing of money for a living. He is like the Willy Won Co of money, where the golden tickets at Hank?
Appointed by the President, he effectively becomes the CSO of the US government and is the Presidents “go to guy” for all matters concerning money, the finance dude of all the finance dudes. In addition, he also manages the Social Security of Medicate Trust Fund—a few bucks here and a few bucks there. And also sits on the board of a ton of international organizations.
Oh, and he is the fifth in line to become the President if everybody else dies, you know, just a small fn, easy going job. Take it back to hank, he maybe an All American Football Player but can he be an All American bailout man. That is what I know about Henry Paulson.
This has been another episode of WSYK, What Should You Know. I am Ethan Bloch in What Should You Know.
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