I am sitting here grading, with CNBC international on in the background because they are giving uninterrupted testimony, and I was only sort of paying attention, when Paulson said something in his testimony that gave me whiplash.
I do not have the transcript of it yet, but will update this post when it goes on line, but (I have video, coutesy of Jed) Paulson added an ad hoc comment not in his prepared testimony that he was aware there would be a need for oversight and there would be a need for regulation, and that the reason he did not include any in his three page proposal the other day is he thought it would be presumptuous and just knew that he would have to work with congress. Thanks to Jed, here is the video:
Don’t be confused. This is a flat out lie. A whopper. An untruth. A grotesque fib. Bullshit on wheels. Nonsense on stilts.
Here is the Paulson proposal from the other day. Note the following:
Sec. 8. Review.
Decisions by the Secretary pursuant to the authority of this Act are non-reviewable and committed to agency discretion, and may not be reviewed by any court of law or any administrative agency.
Krugman reviewed Paulson’s plan this way:
But Mr. Paulson insists that he wants a “clean” plan. “Clean,” in this context, means a taxpayer-financed bailout with no strings attached — no quid pro quo on the part of those being bailed out. Why is that a good thing? Add to this the fact that Mr. Paulson is also demanding dictatorial authority, plus immunity from review “by any court of law or any administrative agency,” and this adds up to an unacceptable proposal.
In his testimony today, while asking for 700 billion dollars, Hank Paulson lied through his teeth. It was so blatant that I am still kind of in a state of shock that not one person on the committee called him on this bullshit. This was a out and out lie. Period.
*** Updated to add video.
*** Update #2 ***