Hank Paulson, snake oil salesman

[marmar]

Paulson Credibility Takes Hit With Rescue-Plan Shift (Update1)

By Rebecca Christie and Matthew Benjamin

Nov. 13 (Bloomberg) -- Henry Paulson became Treasury secretary 28 months ago, when he was at the top of the financial world: Wall Street's best-paid chief executive officer, capping his career with a high-profile sojourn in public service.

Today, two months before he leaves office, some say Paulson is a reduced figure, damaged by the financial-market meltdown that happened on his watch and by the government's struggles to respond to it.

Like many others who have served in President George W. Bush's administration -- among them former Secretary of State Colin Powell and former Treasury chief Paul O'Neill -- Paulson, 62, will leave office casting a smaller shadow than when he arrived.

``Paulson's credibility has certainly been substantially diminished,'' said Peter Wallison, who was general counsel at the Treasury under former President Ronald Reagan and is now a fellow at the American Enterprise Institute in Washington. ``There has been a lot of shifting back and forth and he clearly hasn't thought through much of these policies. He has lost a lot of confidence from the market from all of this.''

The latest blow was his announcement yesterday that the Treasury is abandoning his plan to buy devalued mortgage assets - - the one he unveiled dramatically just eight weeks ago, and defended against congressional and market skeptics. .......(more)

The complete piece is at: http://www.bloomberg.com/apps/news?pid=20601109&sid=apwPJfpF6MgU&refer=home

[DrDan]

1. yes, perhaps . . . but a very rich one