Hank Paulson Revisited
As Washington grapples with Financial Regulation and the Volcker Rule gets closer to passing it may be time to revisit why the financial markets need tightening up. So, why not revisit Hank Paulson, our local boy who made it big, going all the way to Washington.
We have talked at length since our first blog in January 2008 about the trail that started with Reagan-Greenspan and ended with Paulson as the markets crashed. Hank’s book “On The Brink” has gotten a lot of press since its release. It obviously is his attempt at explaining himself. Simon Johnson’s critique in The New Republic is better than reading the book. Read it here.
Now comes the fun part. Since Hank is a local guy and a bit of a legend, I saved a copy of the June 12, 2006 Business Week magazine and have kept it on the top of my desk since then. It has a great cover and title “Mr Risk goes to Washington”. When you read it you will see why the markets were headed to a flame-out. While to be fair one should say that Hank came to the government side of the big bubble party late after it was already filling, it would also be true to recognize that the article was a huge piece of puffery that basically said, Hank is for increasing Risk and that is because he knows how to handle it. Enough said.
See this article at http://www.businessweek.com/magazine/content/06_24/b3988001.htm