Yes, and it is obvious that the creation of this financial recovery fund was not randomic, i.e., he believes in the fixing of the system.
Paulson put billions of dollars into Gold and gold miners, while at the same time buying a bunch of banks. Quite possibly these two ideas were implemented in different funds of his but to say he believes in a fixing of the system is a little far fetched IMO. I rather appears he is trying to opportunistically position himself to profit from whatever is being done trying to "fix the system".
Well, except from maybe BuyloSellHi, who still thinks financial markets will be in a colapsing state forever?
First of all, you entirely misinterpreted the message of the person you were responding to. Secondly, financials, with a few, notable exceptions, are toxic cesspools. If it weren't for the gov't allowing them special accounting rules, 90% of them would be insolvent immediately. Do I think they'll forever be bad? Well, no. Not after they're liquidated, their assets sold off for pennies on the dollar, and rebuilt with healthy balance sheets and legitimate capital. But there will be max pain between here and there.
This may not be a popular thread...nor the BuylowSellHigh handel...well liked. However, He post information, that is valid most of the time. Two weeks ago, I was told that a major bank was close to failing and that the Feds are very much tap'd. A source that is tied very close to GS explained that the damage has yet to come. Of course, I play in the OIL GAME as do my clients so we tend to ignore all the "Market" data...as it doesn't relate to our world. But never the less, High Net Worth Groups tend fall into 2 degrees of seperation....many know each other and very few are in the Stock Market, let alone investing in equities. A few of my clients also spoke of the rumor of more bank failuers, bigger on the Commercial RE end.. Friday COL. Bank and PENN THRIFT. collapse. I am now hearing that the second wave (Extended Stay RE imploding) of commerical RE is about to shit a big brick. Who knows.... all I know is that we are not close to being in a Bull Market and the eye of the storm is fading and thicker, heavery darker clouds are on the Horizon.
Allowing the banks to misrepresent the value of assets on their books may have staved off insolvency for a while, but liquidity issues are likely to erupt as well. Also, it practically guarantees an L-shaped recovery as the banks are going to have to squirrel away money against the day that the accounting rules are going to be enforced again. In fact, the noises FASB and BIS are making about restoring the old rules by 2010 means that these underwater banks have to work like crazy to earn and gouge their way back in a short period of time. A lot of them won't be able to do it, and you can bet that Goldman and JPM will be there to buy them for next to nothing with the money they have made from front running the PPT orchestrated recovery (and probably the subsequent crash).