More Housing Hanky-Pankyhttp://www.fool.com/investing/general/2007/10/16/more-housing-hanky-panky.aspx Seth Jayson
October 16, 2007
I'm shocked. SHOCKED
Today, at Georgetown's law school, Treasury Secretary Hank Paulson made that plain. He followed up on yesterday's Wall Street bailout debacle by telling the world, "Let me be clear, despite strong economic fundamentals, the housing decline is still unfolding, and I view it as the most significant current risk to our economy."
You think, Hank?
Late to reality
Where was he when his Wall Street buddies at Goldman, Lehman Brothers (NYSE: LEH ) , Bear Stearns (NYSE: BSC ) , and Citigroup (NYSE: C ) were raking in hundreds of millions in profit bonuses on the backs of trading in ever-more dangerous, ever-more-leveraged, black-box mortgage derivatives? Where was he when outfits like Impac Mortgage Holdings (NYSE: IMH ) and Novastar Financial (NYSE: NFI ) were building houses of cards from cheap Wall Street money that was sure to dry up as soon as the lousy loans stopped performing?