Hank Paulson - Hits it out of the Park

My boy Hank really delivered in an interview reported today, as we head into the scary leg of the Global Financial Crisis.

Paulson says U.S. lacked tools to tackle crisis: report

Hmm....I'd have to argue the administration had quite a few tools running the show, sir.

He said even after Congress in October approved the $700 billion troubled asset relief program, the U.S. still lacked tools such as an adequate special bankruptcy regime for non-bank financial firms.

"We're dealing with something that is really historic and we haven't had a playbook," he said.

So, I get it that $700B wouldn't buy enough tools. I'm sure they don't sell these things at Harbor Freight. But, dude...you didn't have a playbook? Aren't you...like...the coach?

"The reason it has been difficult is first of all, these excesses have been building up for many, many years. Secondly, we had a hopelessly outdated global architecture and regulatory authorities...in the U.S.," the newspaper quoted him as saying.

Ah, yes...The old "outdated regulatory authorities". I recall endless discussions about the quaint, Depression-era regulations while Congress was dismantling Glass-Steagall and enabling wholesale financial deregulation.

The article delivers the Money Quote towards the end:

"But we have been for some time in the frustrating situation of understanding much more than the public or even the Congress understood in terms of the magnitude of what we are facing."

Um...yeah. That's why by October of last year, I felt the need to post my year-end summary of Paulson On-Message.

Heckuva job, Hank. Enjoy your millions.