Paulson Is the Enemy

Hank Paulson has become the enemy, as Robert Marcin so eloquently states. "The fundamentals are sound" is code for "no need to intervene in housing (or anywhere else for that matter)," and that's just plain stupid. He's in the running now to go down as one of the worst Treasury secretaries in history.

We need the homeowner solution out of Congress and signed right now, particularly because we have lost the Fed. We need to end the FHA program of new loans for no money down -- how is that even possible? -- and we need to break the inevitable destruction of Fannie Mae (FNM - commentary - Cramer's Take), Bank of America (BAC - commentary - Cramer's Take), Wachovia (WB - commentary - Cramer's Take) and WaMu (WM - commentary - Cramer's Take).

It does seem that some of the confidence numbers, which are so bad, and the actions of Wachovia to bite the bullet and the homebuilder upgrades are helping the cause. Seems like a bet on congressional action on the $300 billon.

Personally, I just think it is the margin calls ending and the redemption money being raised.

But I do not believe that Congress can come to our rescue because of Hank Paulson's terrible judgment.

How did this guy ever get to the top of Goldman Sachs (GS - commentary - Cramer's Take)?

Frightening.

At the time of publication, Cramer was long Goldman Sachs.

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