http://bloomberg.com/apps/news?pid=20601039&sid=a5PEgwA8j68M&refer=home If you haven't figured it out by now, America has hired the wrong Paulson. There are two of them, Hank and John. Hank turned Goldman Sachs from an investment bank into a busload of tourists going to a casino, with borrowed money. Goldman might have been the smartest investment bank but you only needed to see Dick Fuld testify before a congressional committee to know how much that means. No pun intended, but Dick didn't know dick. Astute observers will note that every time they run across a party of midgets, one is tallest, and his name is usually Goldman. Suffice it to say that while Hank's shop was creating subprime mortgage-backed bonds, John's was shorting them. Hank wound up working for the government, John wound up making $3.7 billion. For himself.
You know the funny thing... Paulson is in the process of turning the US govt into a giant hedge fund investment bank, borrowing money to double down on a failed financial system. Hire an i-banker to do the job and in the end there is no real creativity. You get what you pay for... a bumbling idiot without an ounce of consistency.