Friday, 26 September 2008 01:00

Goldman Sachs valuation update: Buffet's strategic investment and public offering

First order of the day, news items:

Source: Reuters

A
rescue for the U.S. financial system unraveled late Thursday amid
accusations Republican presidential candidate John McCain scuppered the
deal. Wamu's demise will further devalue mortgage assets. I don't care how much the government buys, we (the tax payer) don't have enough wealth to synthetically support this derivative market (yes, MBS are derivatives).

120
1920x1200

Normal
0

false
false
false

EN-US
X-NONE
X-NONE

/* Style Definitions */
table.MsoNormalTable
{mso-style-name:"Table Normal";
mso-tstyle-rowband-size:0;
mso-tstyle-colband-size:0;
mso-style-noshow:yes;
mso-style-priority:99;
mso-style-qformat:yes;
mso-style-parent:"";
mso-padding-alt:0in 5.4pt 0in 5.4pt;
mso-para-margin:0in;
mso-para-margin-bottom:.0001pt;
mso-pagination:widow-orphan;
font-size:11.0pt;
font-family:"Calibri","sans-serif";
mso-ascii-font-family:Calibri;
mso-ascii-theme-font:minor-latin;
mso-fareast-font-family:"Times New Roman";
mso-fareast-theme-font:minor-fareast;
mso-hansi-font-family:Calibri;
mso-hansi-theme-font:minor-latin;}

SYDNEY/SINGAPORE (Reuters) - Central banks across Asia
scrambled on Friday to meet a desperate demand for cash, both in their own
currencies and the U.S. dollar, as the White House's $700 billion bailout plan
ran into unexpected roadblocks. The asset securitization crisis is contagious... http://www.reuters.com/article/ousiv/idUSTRE48P11E20080926?sp=true

Fed keeps banks afloat as money market crisis deepens - what banks do you think they are referring to??? Goldman Sachs and Morgan Stanley. The run on the prime brokerage accounts of Morgan Stanley have been confirmed in both London and NY.

120
1920x1200

Normal
0

false
false
false

EN-US
X-NONE
X-NONE

/* Style Definitions */
table.MsoNormalTable
{mso-style-name:"Table Normal";
mso-tstyle-rowband-size:0;
mso-tstyle-colband-size:0;
mso-style-noshow:yes;
mso-style-priority:99;
mso-style-qformat:yes;
mso-style-parent:"";
mso-padding-alt:0in 5.4pt 0in 5.4pt;
mso-para-margin:0in;
mso-para-margin-bottom:.0001pt;
mso-pagination:widow-orphan;
font-size:11.0pt;
font-family:"Calibri","sans-serif";
mso-ascii-font-family:Calibri;
mso-ascii-theme-font:minor-latin;
mso-fareast-font-family:"Times New Roman";
mso-fareast-theme-font:minor-fareast;
mso-hansi-font-family:Calibri;
mso-hansi-theme-font:minor-latin;
mso-bidi-font-family:"Times New Roman";
mso-bidi-theme-font:minor-bidi;}

Flight
from Morgan Stanley brokerage

Financial Times -
London,England,UK
By James Mackintosh in London Morgan Stanley lost close to a third of
assets in its prime brokerage last week, amounting to hundreds of billions of
dollars, ...

120
1920x1200

Normal
0

false
false
false

EN-US
X-NONE
X-NONE

/* Style Definitions */
table.MsoNormalTable
{mso-style-name:"Table Normal";
mso-tstyle-rowband-size:0;
mso-tstyle-colband-size:0;
mso-style-noshow:yes;
mso-style-priority:99;
mso-style-qformat:yes;
mso-style-parent:"";
mso-padding-alt:0in 5.4pt 0in 5.4pt;
mso-para-margin:0in;
mso-para-margin-bottom:.0001pt;
mso-pagination:widow-orphan;
font-size:11.0pt;
font-family:"Calibri","sans-serif";
mso-ascii-font-family:Calibri;
mso-ascii-theme-font:minor-latin;
mso-fareast-font-family:"Times New Roman";
mso-fareast-theme-font:minor-fareast;
mso-hansi-font-family:Calibri;
mso-hansi-theme-font:minor-latin;
mso-bidi-font-family:"Times New Roman";
mso-bidi-theme-font:minor-bidi;}

Goldman
and Morgan Stanley Help Drive Discount Window Lending to a ...

By Jesse(Jesse) Scroll down to the excerpt from American Banker: Discount Window Borrowing Jumps to $262 Billion By Steven Sloan
September 26, 2008 WASHINGTON — During another turbulent week on Wall Street,
lending through the Federal Reserve Board's discount window skyrocketed to ...

120
1920x1200

Normal
0

false
false
false

EN-US
X-NONE
X-NONE

/* Style Definitions */
table.MsoNormalTable
{mso-style-name:"Table Normal";
mso-tstyle-rowband-size:0;
mso-tstyle-colband-size:0;
mso-style-noshow:yes;
mso-style-priority:99;
mso-style-qformat:yes;
mso-style-parent:"";
mso-padding-alt:0in 5.4pt 0in 5.4pt;
mso-para-margin:0in;
mso-para-margin-bottom:.0001pt;
mso-pagination:widow-orphan;
font-size:11.0pt;
font-family:"Calibri","sans-serif";
mso-ascii-font-family:Calibri;
mso-ascii-theme-font:minor-latin;
mso-fareast-font-family:"Times New Roman";
mso-fareast-theme-font:minor-fareast;
mso-hansi-font-family:Calibri;
mso-hansi-theme-font:minor-latin;
mso-bidi-font-family:"Times New Roman";
mso-bidi-theme-font:minor-bidi;}

China banks told to halt lending to US banks: (Reuters) - Chinese regulators have told
domestic banks to stop interbank lending to U.S. financial
institutions to prevent possible losses during the financial
crisis, the South China Morning Post reported on Thursday.

The Hong Kong newspaper cited unidentified industry sources
as saying the instruction from the China Banking Regulatory
Commission (CBRC) applied to interbank lending of all currencies
to U.S. banks but not to banks from other countries. "The decree appears to be Beijing's first attempt to erect
defences against the deepening U.S. financial meltdown after the
mainland's major lenders reported billions of U.S. dollars in
exposure to the credit crisis," the SCMP said. A spokesman for the CBRC had no immediate comment.


As I have been crowing for about a year now, the investment banks are insolvent. Below is an updated analysis of Goldman Sachs after their recent capital infustions...

Goldman Sachs update following strategic investment by Berkshire Hathaway and public offering

On September 24, 2008 GS announced public offering of 40.65 mn shares at $123 per share for total gross proceeds of approximately $5 bn. Earlier on September 23, 2008 GS announced $5 bn strategic investment by Berkshire Hathaway in the form of perpetual preferred stock with an annual dividend of 10% callable at any time at a 10% premium. In addition, Berkshire Hathaway would also receive warrants to purchase $5 bn of common stock at a strike price of $115 per share exercisable at any time for a five year term. This combined offer would help GS to raise a total capital of $10 bn.

Public offering
# of shares

40.7

Share price $123
Total proceeds $5,000
Face value $0.41
Premium $5,000
Private offering
Total proceeds $5,000
Preffered dividend rate 10.0%
Annual preffered dividend $500
Total gross proceeds $10,000
Other preferred stock Redemption
Series Date Value
A Apr-10 $750
B Oct-10 $800
C Oct-10 $200
D May-11 $1,350

Impact of additional capital raised by Goldman Sachs

We believe that this additional capital would have the following impact on Goldman Sachs:

  • Help Goldman Sachs in reducing its leverage position
  • Improve Goldman Sachs liquidity position
  • As a result of improved liquidity position Goldman Sachs would have to sell fewer distressed securities to Fed resulting in lower write-downs
  • Increase preferred dividend to be paid by $500 mn per annum
  • Dilution in earnings for existing shareholders' equity

Impact on leverage and book value

Including the impact of preffered stock and public offering
4Q-2008 1Q-2009 2Q-2009 3Q-2009 4Q-2009 1Q-2010 2Q-2010 3Q-2010 4Q-2010 2011 2012
Total Assets ($ bn) $1,103 $1,095 $1,088 $1,084 $1,078 $1,092 $1,099 $1,105 $1,110 $1,133 $1,123
Tangible Equity ($ bn) $50.3 $49.4 $48.1 $46.8 $45.3 $45.6 $45.0 $44.9 $43.7 $44.1 $47.6
Book value per share $114 $112 $109 $106 $103 $103 $102 $102 $99 $100 $106
Adjusted Book value per share $103 $101 $98 $96 $93 $93 $92 $92 $89 $90 $97
Adjusted leverage 21.8 22.0 22.5 23.0 23.7 23.8 24.3 24.5 25.3 25.6 23.5
Excluding the impact of preffered stock and public offering (previous model)
4Q-2008 1Q-2009 2Q-2009 3Q-2009 4Q-2009 1Q-2010 2Q-2010 3Q-2010 4Q-2010 2011 2012
Total Assets ($ bn) $1,092 $1,083 $1,076 $1,071 $1,065 $1,079 $1,087 $1,093 $1,098 $1,121 $1,112
Tangible Equity ($ bn) $40.5 $39.6 $38.2 $36.9 $35.4 $35.8 $35.3 $35.4 $34.2 $35.1 $39.1
Book value per share $102 $100 $97 $94 $90 $91 $90 $90 $87 $88 $97
Adjusted Book value per share $90 $88 $85 $82 $79 $80 $79 $79 $76 $78 $87
Adjusted leveraege 26.9 27.3 28.1 28.9 30.0 30.0 30.6 30.8 32.0 31.9 28.4

Goldman Sachs currently has nearly $1,090 bn
worth of assets on an equity base (tangible) of $40 bn with an adjusted
leverage of 27x. Goldman Sachs effort to raise $10 bn of capital on
such a huge asset base looks minuscule. We believe that if
Goldman Sachs were to remain financially strong any kind of
re-structuring exercise must entail removing their toxic assets from
their balance sheet which are causing massive write-downs rather than
re-structuring its capital base.
Although Goldman Sachs
efforts to raise additional capital are expected to reduce its leverage
to 21.9x at the end of 2008 from 27x presently, GS's leverage post
capital raising efforts would continue to be on a higher side, in our
view.

Impact on write-downs

Additional capital raised by Goldman Sachs
would provide Goldman Sachs the flexibility to sells its assets to
Federal Reserve. In our previous analysis (Impact of Fed bail out
plan) we had estimated that under the base case scenario Goldman Sachs
would sell $34 bn worth of distressed securities comprising nearly 25%
of its level 1 assets, 50% of its level 2 assets and 80% of level 3
assets. However after considering the impact of additional capital
raised, Goldman Sachs now would have to sell $24 bn of distressed
securities under the base case scenario. This would mean that under the
base case scenario Goldman Sachs would now have to sell 17% of its
level 1 assets, 34% of its level2 assets and 55% of its level 3 assets
to Federal Reserve.

Following are our revised assumptions regarding sale of distressed security by Goldman Sachs:

Analytical impact (thru reduction of sale of distessed secutities to Fed resulting in lower write-downs)
GOLDMAN
Total Sales
Total Sale of disressed securities in 2008 and 2009 Previous estimates Difference Factor
(using goal seek)
Current estimates
Sells Aggressively 58,612 (10,000) 79% 48,612
Base case 34,453 (10,000) 69% 24,453
Sells Conservatively 19,965 (10,000) 49% 9,965
Assumptions regarding the proportion of MBS / ABS by MS
- 2009 (previous estimates)
Sells Aggressively Base case Sells Conservatively
Level 1- 50% 25% 10%
Level 2 - 70% 50% 25%
Level 3 - 90% 80% 50%
Factor 79% 69% 49%
- 2009 (revised estimates)
Level 1- 39% 17% 5%
Level 2 - 55% 34% 12%
Level 3 - 71% 55% 25%
Distressed securities to be sold to Fed
Base case
Old estimates
2008 $4,645
2009 $29,808
Total $34,453
Reduction of need of sale of distessed securities by GS to Fed -$10,000
Revised estimates (by using goal seek)
2008 $3,191
2009 $21,262
Total $24,453

Due to lower sale of distressed security by Goldman Sachs, it would have to take the lower ‘haircut'.
Total write-down on account of sale of securities to Fed under the base
case scenario is expected to reduce by nearly $1.8 bn to $4.4 bn as
against previous estimates of $6.1 bn.

Potential write-downs due to sale of distressed securities to Fed
GOLDMAN
Selling pace
Fed (Pricing scenario)
Low discount Base case Deep discount
Sells Aggressively 1,629 8,170 10,440
Base case 918 4,367 5,573
Sells Conservatively 378 1,789 2,285
Potential write-downs due to sale of distressed securities to Fed
GOLDMAN
Selling pace
Fed (Pricing scenario)
Low discount Base case Deep discount
Sells Aggressively 1,962 9,760 12,433
Base case 1,295 6,147 7,833
Sells Conservatively 754 3,573 4,563

Dilution effect and accounting impact

Accounting impact (increase in cash flow, book value per share, increase in assets and reduction in leverage)
4Q-2008 1Q-2009 2Q-2009 3Q-2009 4Q-2009 1Q-2010 2Q-2010 3Q-2010 4Q-2010 2011 2012
Preffered stock (series A-D) 3,100 3,100 3,100 3,100 3,100 3,100 2,350 2,350 1,350 0 0
Rate 4.5% 4.5% 4.5% 4.5% 4.5% 4.5% 4.5% 4.5% 4.5% 4.5% 4.5%
Preffered stock dividend 35 35 35 35 35 35 27 27 15 0 0
Preffered stock issued to Warren Buffet 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000 5,000
Rate 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0% 10.0%
Preffered stock dividend 125 125 125 125 125 125 125 125 125 500 500
Total preffered dividend 160 160 160 160 160 160 152 152 140 500 500
Total Preffered stock 8,100 8,100 8,100 8,100 8,100 8,100 7,350 7,350 6,350 5,000 5,000

As a result of issuance of preferred stock to
Berkshire Hathaway, Goldman Sachs's preferred stock dividend would
increase to $35 mn in 3Q2008 to $160 mn in 4Q2008 with annual impact of
$500 mn of preferred stock dividend negatively impacting Goldman Sachs
earnings per share by nearly $1.07. Issuance of common equity of $5 bn
would increase Goldman Sachs shares by nearly 40.7 mn resulting in a
dilution impact of nearly 9.5% for its existing shareholders.

Impact on valuation

Owing to additional capital raised Goldman
Sachs shareholders' equity at the end of 2009 is expected to... The
balance of this analysis is for subscribers only. Subscribers
may download the pdf version of this analysis update, with a full
additional page of valuation metrics and my opinion of the current
value of Goldman Sachs shares here - spreadsheet Goldman Sachs - strategic investment and public offering (895.36 kB 2008-09-26 02:29:15)

More Free Stuff

Since the Goldman Sachs issue is so timely, I
have made the retail and professional/institutional research reports for
Goldman Sachs available for free. See the pdf retail_gs_report_sample 108.08 Kb for an example of our retail summary analysis, and download pdf professional_gs_report_sample 350.12 Kb for an example of the full blown analysis for professional individuals/institutions. You may subscribe by clicking this link.

Last modified on Friday, 26 September 2008 01:00

15 comments

  • Comment Link shaun noll Tuesday, 30 September 2008 19:03 posted by shaun noll

    i just searched the CDS article that reggie wrote and the JPM exposure is in there. you'll see it if you search JPM and CDS it will turn up.

    Report
  • Comment Link shaun noll Tuesday, 30 September 2008 18:51 posted by shaun noll

    i'm know that CDS chart with JPM on it is around here somewhere.... let me see if i can find it for you

    also, just because you dont think GS is going to go bankrupt doesn't mean its time to go long, i hear a similar argument in housing all the time, that since its done going down it must go up now, there have been decades in a row where house prices did not increase at the same rate as inflation giving negative real returns and just because GS maybe wont go under doesn't mean you should go long, that is kind of crappy house that is in a very bad neighborhood right now, if you HAVE to go long, there are much better bets out there, no reason that GS couldn't basically just be super volatile and then gradually delever so that the stock basically just trades sideways while they raise the dividend, i think that is the best case scenario right now for them, and worst case? that actually all the L3 stuff they hold is worth nothing and they are toast.

    Report
  • Comment Link a b Tuesday, 30 September 2008 05:16 posted by a b

    Reggie, I've made ridiculous profits trading on your analysis, and I thank you. The only holdout is Wells Fargo, which of course is riding the Buffet worship, but may become too big too fail. Are you still as bearish?

    Also, I've read that JPM has a 90 trillion dollar exposure to derivatives. Can you drill that down for the layman?

    re: Louis xiv. This time around,it's "apres moi, the dilution".

    Report
  • Comment Link Jawad Qasrawi Monday, 29 September 2008 04:56 posted by Jawad Qasrawi

    logically speaking, home builders are going to continue suffering and decline. New home sales will not go to normal levels for years. They will continue to burn cash and equity. Although they dropped alot, some failures are expectd to happen

    Report
  • Comment Link FGR Monday, 29 September 2008 02:42 posted by FGR

    hey im not saying that you didnt make some good/excellent calls going short from way above. but now, at least for GS, and for stronger players (maybe JPM for example) the tide is turning
    of course, delevaraging is still going on. capital is very expensive, but with all the distressed assets over there, you can expect the same kind of returns that one could have expected 2 years ago, with a big difference: now you dont need any leverage at all
    to earn this kind of returns !!! CASH has been KING, now may be the time to SPEND the CASH. GS just got tons of it,
    and has big buddy Hank who'll try his best to help them.
    A very smart HF senior manager told me all this debacle would stop when equity-like returns could be achieved without leverage when buying distressed assets. We may be soon reaching this point.
    Many failures, but survival of the fittest, the winner takes it all.

    As for GS, i agree for an outsider, there may be no proof that GS is any different than BS or LEH. But, obviously WB trusts GS management, and insiders still believe in their firm. Now stock picking is difficult, thats why there is risk-premia and its so difficult to be right all the time... why GS would be doing extraordinary well and not finish like LEH & BS ? i have only a stupid answer: maybe
    because they excel at what they do, but you may be right and theyll go under ultimately ?

    at 130s $ id rather be long than be short of them, thats all im saying. there are many worst run banks around,
    especially in Europe, they may make better shorts for you. Example: Fortis collapsed. What have RBS and Fortis in common ?


    But at

    Report
  • Comment Link Reggie Middleton Monday, 29 September 2008 01:11 posted by Reggie Middleton

    The argument makes plenty of sense, except for two things:
    A) that's exactly what Lehman and Bear Stearns said
    b) the Goldman short/put trade has already turned out to be extremely profitable, returning 200 to 300% if done correctly. At this point the profits have already been stuffed in and the astute investor will be playing with the house's money. The stock is down from $225 to the $130's (was as low as $85), and the bank will probably be forced to delever further to maintain its bank charter. In addition, the risky leveraged bets that allow 2-300% returns are a no-no in a Federally chartered bank. Many real estate related assets just aren't going to return to pre-bubble pop prices for at least a decade or two.

    We have to face the facts. Imagine being levered up in tech stocks in the first have of 2000, then imagine yourself sitting around in 2001 waiting for the tech and dot.com makret (ex. the NASDAQ) to return to those highs so you can dump your marked down holdings at 200 to 300 percent. I would suggest you put a lot of padding under your ass, for you will be sitting around for a long time!!!:P

    Report
  • Comment Link francois-guillaume rideau Monday, 29 September 2008 00:39 posted by francois-guillaume rideau

    here is what a Goldman Partner friend of mine said:
    "Goldman is no Lehman, the culture is totally different. Lehman bankers were reckless.
    We mark EVERYTHING in Mark-to Market. When we dumped our LBO loans, it was above our conservative marks."

    Lvl 3 Assets may be high, and raise suspicion, but Lvl 3 assets are illiquid stuff, marked to model or marked where you think the exit price is (at least thats what it should be). You must not assume that Lvl 3 assets are all marked to par while being worth 10%

    Buffett got an extraordinary deal in Goldman. But the deal is not as bad as it seems for Goldman:
    There are plenty of distressed assets around. raising capital @ 10% or 15% may be cheap, if you can make a 50% , 100% or 200% return. And, Goldman is obviously backed by Hank.
    The preferred are callable, and when all those distressed prices wont be around anymore, and their profits really fat,
    they can call those preferreds. Its a good deal for Goldman as well, and they dont look like they need money anymore..

    Many rumours they could have gone really really bad, had AIG collapsed inorderly, but they look fine, or being given enough time to double or triple their bets, to be able to sort themselves out of this mess

    Dont short Goldman, you would be short Buffett and the US Treasury as well.
    even if they go broke, you may end broke way before they do.

    Report
  • Comment Link shaun noll Friday, 26 September 2008 20:05 posted by shaun noll

    reggie looked at all the homebuilders quite some time ago, i believe he exited his shorts but i'm not sure, they have obviously gotten crushed though, maybe a little late to short them unless you really know one of them is going to 0$

    i cant wait for this bailout package to go through so all these banks rally like crazy, these are going to be dream shorts, going to be bumpy with the occasional acquisition but these guys are wayyyyy over valued, i dont know why its so hard for the media and the country to understand that this huge asset bubble not only created some weak banks, but quite simply, the entire banking system is now just way too big as a result and a bunch of these banks will have to go under to simply normalize that amount of banks this economy/country needs

    wonder if they will let us start shorting again in october....

    Report
  • Comment Link Andrew Watson Friday, 26 September 2008 15:39 posted by Andrew Watson

    Look at Bank of America and Wells Fargo today up in strength can you believe this market. Going into a recession and these banks showing significant strength this week. Read Meredith Whitney gave $1.34 eps estimate for 2008 Wells Fargo will be trading at 27x p/e based on that target. ;)

    Report
  • Comment Link Jawad Qasrawi Friday, 26 September 2008 15:30 posted by Jawad Qasrawi

    Reggie

    Did you do any analysis on Builders? Specifically, KB homes?

    cheers

    Report
  • Comment Link r p Friday, 26 September 2008 15:12 posted by r p

    One of Louis XIV's finance ministers went down in history with the comment that "The art of taxation consists in plucking all the feathers from the goose in such a way that he may never be moved to hiss." When Louis came to power, France was the most prosperous and powerful nation in Europe. 60 years later, when he died, it was broke and nearly defenseless. The more things change....

    Report
  • Comment Link shaun noll Friday, 26 September 2008 13:00 posted by shaun noll

    http://www.euro2day.gr/ftcom_en/126/articles/372941/ArticleFTen.aspx

    Report
  • Comment Link tyson Friday, 26 September 2008 09:04 posted by tyson

    http://www.monkeybusinessblog.com/goldman_superheroes/

    Report
  • Comment Link Rahul C Friday, 26 September 2008 06:22 posted by Rahul C

    Instead of handling $700 bn check to wall street for worthless papers for cash / treasuary (leading to inflatioany conditions) Fed should consider various alternatives such as this -

    The bailout requires responsible Americans to pay for the acts of greedy bankers, mortgage brokers, flippers, and over-extended home-borrowers. Instead of government buying these waste assets at huge premium, the Fed should consider a stake in these i-banks including Goldman Sachs and Morgan Stanley. The deal would be simple – Fed and tax payers get the stake in these companies and then bail out them. Otherwise these i-banks would continue to enjoy luxuries at the expense of tax payers’ hard earned money to speculate on financial products. Restructure their management and realign their compensation structures in line in government pay packages. Coz if Fed simply bails them out at the expense of tax payers’ money these executives would continue to take these high riskier bets. Rules in the financial game are simple – high risk and high returns. Now since these i-banks bet have turned against them they should pay for it. If Fed goes for $700 bn package there the module should be revisited.
    •Let the government acquire a stake in these companies in exchange of distressed debt (diluting existing shareholder’s stake and paying them for their wrong bets) and sell the stake after a windfall time period instead of issuing treasury which would cause inflationary pressures on the economy
    •If government loses on distressed securities it can cover it up through stake sale. If everything goes right taxpayers could have huge windfall profits
    •Restructure the current management now since govt is majority stake holder
    •Allow increased foreign investor participation in housing sector which could help stabilize prices
    •Restrict S&P and Moody’s to further downgrade securities (unofficially in the back door) which would limit further write-downs in the wall street. Altough the basic functioning of the financial markets (like rarings) cannot be interfered and should be left open for markets to declide, it should only be considered as tempory package in the event of serious financial meltdown.

    Report
  • Comment Link Shawn Hughes Friday, 26 September 2008 04:46 posted by Shawn Hughes

    Paulson was the leader on Wall St when all of this toxic sludge was issued.

    Now he is the leader of the treasury. There is absolutely no doubt: he stole trillions from America and the world on the way up, and now he is stealing the rest on the way down.

    If you explained the financial crisis to an eight year old, what is the first thing he would ask? Why is Paulson, the head of Wall Street, in charge of the treasury? Of the 6 billion people on the earth, he is the absolute worst choice.

    Report
Login to post comments