hank paulson former treasury secretary
for george w_ bush five during economic crash i was obviously in charge he was also a former perceive over on
the sax uh… on july twenty first of two
thousand eight high res worry about freddie mac and fannie mae are they
gonna go under how they’ve already lost tremendous amount of money all but he says don’t worry he tells the
public that the federal reserve in the office of the controller control the
currency are inspecting fannie and freddie fox and that did he
expects examination would give it a single of confidence for
the markets confidence in the markets and great with
any of that on the same thing saturday we now find
out he’s a man of the raxle article from bloomberg news uh… that he met at the park capital management which is a hedge fund company with about twelve of the largest hedge fund managers in the country these are for some of the biggest
wheelers and dealers in on wall street and hence the richest people in the
country uh… he met with a dozen of them and
said almighty psyched up in the body of fannie and freddie and bath in trouble we are likely to take them in the
conservative ship meaning the government will seize their property and hence that
people holding stock and fannie and freddie will basically be wiped out that is being valuable information that they could then trade on for
example they did u of at what they call the shorting the stock which means
betting against the stock did they do that well we’ll find out a little bit
later in the story when asked about this of former
regulator william black is now so super oppressor economics of law at the
university of missouri kansas city says quote you just never ever do that as a
government regulators transmit non-public market information for market participants there were no legitimate reasons for
those disclosures to force makes sense something you should know though is
among those dozen guys five of them work x goldman sachs employees where before it’s paintball so it was the c_e_o_ for a long period of time any new all
those guys they all got rich the entire they’ll
continue to get rich the update so uh… uh… well uh… one of the guys at this
meeting is the one that talkable bird news anonymously and told him exactly
what happened now summers who has already been confirmed by other people there at the meeting
they said yes we were there yes that meeting happened yes olson share that
information today after a while there’s a good
question in fact the guy who share this
information immediately called as a lawyer said business insider information correct
rate on this or not as long as well okay praising this as much as separation isn’t that that had forces not only will trouble
according to the professors asked about this as they say he didn’t radon at the
g_-seven tells bodies the by right did other people in that meeting go
ahead and short that stock well we’re gonna find out a little bit but that is so he knows what happened
there well it turns out of course that they
didn’t go to conservative ship seven weeks later just as hank paulson told at
his that perform managers in a secret meeting and in fact the various gussa
preferred shares lost about eighty five percent overvalued so if you’re betting against that stock
you’ve made a killing well we can’t find out because it’s not
public information whether the specific guys over at that meeting but i guess
the stock but we do know the volume of trading against the stock in the beginning in july before the
meetings that hank paulson had was that fund managers there were eighty six four three million
shares that against fannie mae or freddie on july twenty fourth after the meeting that number had jumped to two hundred
and sixty two million dot tears over trade eighty six the two hundred and sixty two so somebody with that information k minnesota aren’t
that many thanks fannie mae and freddie mac and somebody mayday killing on it what was effect on the american taxpayer
option not a big deal turns out that when we took over fannie
mae or freddie mac they were an absolute disaster and so far they have cost us one hundred and twenty four billion dollars yet another story where we guess the goldman sachs guys that go to work
inside the government fell the other goldman sachs defies another hedge fund
managers in their one-percent meeting hey here’s how you can make millions
perhaps billions of a designer affirmative-action
beginning your and then later we’ll laugh it off pop up
a lot of indicted iverson complaining about the cold war all or paul paul we got stuck with the bill and they made
it for men is a killing off that man this is largely by wall street’s about
this is what wolf pack is about it’s worse sector of these politicians son this out so their rich friends can get even
richer and we pay the bill