Tuesday, November 25, 2008

Financial incest

Just in case you thought Obama was going to rid Washington of insider cronyism:
Treasury Secretary Henry M. Paulson Jr.; Citigroup board member Robert E. Rubin; and Timothy F. Geithner, the president of the Federal Reserve Bank of New York, have for years followed one another in and out of jobs in government and industry. Their close relationships helped pave the way for one of the largest and most dramatic government interventions to date in the financial crisis. . . .
The bailout came only days after Paulson made comments that many in the financial markets took to mean that he would leave any future bailouts to the Obama administration. But once Citigroup's stock price plunged 60 percent last week, Rubin, an old colleague from Goldman Sachs, told Paulson in phone calls that the government had to act, according to industry sources familiar with their discussions.
Geithner, too, shared a close relationship with the pair.
He worked for Rubin at the Treasury Department in the 1990s and now is President-elect Barack Obama's nominee to follow Paulson as Treasury secretary.
As Citigroup's lead regulator, Geithner was deeply involved in the rescue of the firm, participating in meetings and conference calls with Paulson through the weekend. He did, however, withdraw from direct interactions with Rubin and other Citigroup leaders in these negotiations after his name was leaked as Obama's nominee, according to people familiar with the discussions.
You voted for Hope. You got Goldman Sachs.

(Cross-posted at AmSpecBlog.)

UPDATE: A friend writes:
It doesn't matter who you vote for. You always get Goldman Sachs. As someone famous is reputed to have said to Nelson Rockerfeller, "Why do want to run the country? You already own it."
Indeed, but you'd think that voters would eventually see through the liberal class-warfare charade. But if it weren't for gullible voters, where would the Democratic Party be?


  1. Don't blame me! I voted for Gov. Palin and that old guy. Hmm. Oh yeah, your crazy cousin John!

  2. Nelson knew this dirty little secret -- Governors and Presidents have more power over the lives and actions of others than mere businessmen. If you want bang for your buck in terms of power, your best investment is in buying a political office.

    Schwarzenegger was very rich but had very limited power over things and people before he bought his current Governorship. Now he's in charge of hundreds of billions in spending, effects the lives of many millions of people.

    People like Mike Bloomberg know it too. If you want to have real command over masses of people and masses of resources, it's impossible to beat control over a government. It's why the rich are so willing to spend so much to grasp these political offices.

    It's no accident either that the rich are grabbing so many of these positions. For these folks there just isn't enough power and control in the private sector.

    It may sound sick, but don't imagine that we are governed by the healthiest people in the nation.

  3. Hah!
    How sad. Already grasping at straws.
    Yes, of course. It's Obama's fault. Yes yes.
    We all thought he was going to appoint Joe Sixpack
    for Treasury Secretary.
    The great thing is that you guys still don't get the
    kind of change he was talking about.
    As if WE thought he was going to send rich people into exile.