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