Daily Flog: The worm turns . . . yet another profit
After feasting on Wall Street's collapse, hedge hog John Paulson scurries to London for more.
The early worm kills the birds — excuse me, we're talking of the financial world, so the birds are actually vultures.
And the worm is New Yorker John Paulson (left), the hedge-fund manipulator so admired in his circles.
Not as well-known as he should be to the rest of us, Paulson has fortunately surfaced into the news.
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Hedge hog or worm — like a Fox, we report, you decide.
He's a different animal to those who worship short-sellers. Paulson's so admired that after Alan Greenspan sold us short, Wall Street's Rasputin went to work for Paulson. As the Financial Times noted last January:
Let's let Bloomberg — the news service owned by Mayor Mike Bloomberg — tell this latest story of Paulson's maneuvers after some counsel from his aging bitch Greenspan (as if Paulson really needed help).
The mayor, of course, has only indirectly helped people like John Paulson. Mayor Mike did nothing with his vast business knowledge to stop the damaging Wall Street derailments even though his company's sophisticated financial-data products that gave the mayor his fortune enabled Wall Street to figure out how to profit from subprime mortgages, credit arbitrage, and the like (as I pointed out yesterday).
Anyway, in "Paulson Shorts 4 of 5 Largest U.K. Finance Companies," the news wire Bloomberg reports:
Everybody's talking these days about Hank Paulson, whom Jon Stewart refers to as the Frankensteinish figure who's spending your money to bail out Wall Street's reckless financiers — who crapped out after playing with the billions you had already handed over to them.
Hank Paulson worked as Nixon flunky John Ehrlichman's assistant during the Watergate era and then made his money at Goldman Sachs, eventually becoming its CEO before his appointment as Dick Cheney's Treasury Secretary. (Paulson's official bio notes that not only is he an "avid nature lover" but that Goldman Sachs is "one of the world's largest and most successful investment banks." Make that "former investment bank.")
John Paulson, on the other hand, never worked for Nixon and he hasn't yet made enough money; he's straight out of Dune or Tremors: the giant worm too greedy to ever get his fill after making sneak attacks on his prey.
But John Paulson's not such a bad thing, if you believe his press releases. The final chapters of the Mike Bloomberg story — bailout czar? president? — have yet to be written, but the mayor's Bloomberg L.P. news service continues the story of John Paulson:
Don't decide whether you believe the bit about Paulson's "empathy" until you see this June 25 Wall Street Journal item, "Subprime Billionaire John Paulson: ‘Not a Credible Witness,' Court Says":
He wound up in the Canadian court after some complex maneuvering in the arbitrage bidness:
You don't have to go to Canada to learn more about Paulson. Just drive out to the Hamptons. That's what Vanity Fair's Michael Shnayerson did for his story last month, "Hamptons Overdrive":
I guess that means I should try to hang onto my house and just hope that John Paulson doesn't get his hands on my mortgage contract.
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