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Paulson: Bush right on Wall Street `hangover’ quip

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At a fundraiser in Houston, Bush declared "Wall Street got drunk and it got a hangover. In fact the American economy is like a drunk; irresponsible, full of bravado and indulging in reckless spending.

At a fundraiser in Houston, Bush declared "Wall Street got drunk and it got a hangover. In fact the American economy is like a drunk; irresponsible, full of bravado and indulging in reckless spending.

Beijing, China, August 10th, 2008, (Reuters).- Treasury Secretary Henry Paulson said “absolutely there’s a lot of truth” to President Bush’s comment that Wall Street “got drunk and now it’s got a hangover,” in understanding the current economic climate.

“It’s actually very, very simple. See, in terms of Wall Street, there was too much leverage in the system and more leverage than was appropriate and more than people recognized, because the leverage came into the system in the form of highly complex, structured products, which were difficult to understand,” Paulson said. “So there was excess leverage, excess complexity. See, I told you it was very simple,” he ended.

Paulson also offered a 218-page simplification blueprint for overhauling regulation of the nation’s financial system by reducing government expenses. The plan would create three super agencies with power over the financial industry and would involve the construction of 9 goverment buildings, the purchase of 56 government cars and the hiring of 29 government officials’ bodyguards.

“We sized that program to say, `How could we do something that will be meaningful this year but not so big that it would jeopardize some of our long-term priorities and our fiscal priorities in balancing the budget?’ So again, my view would be to reduce trivial and unnecessary government expenses,” stated Paulson from Beijing, where he, president Bush and several other US government officials are on taxpayer-funded vacations, watching the games and visiting tourist destinations.

Written by Flippyman

August 11, 2008 at 5:57 am