The 2008 Mortgage Crisis: Henry Paulson

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Background
Henry Paulson is a banker who served as the 74th US secretary of the treasury. Born in 1946, Paulson is internationally recognized as the economist who came up with a solution to the 2008 mortgage crisis. Paulson introduced the bailout package in an effort to assist institutions that were at the brink of collapse. Paulson early career began at the pentagon where he worked as the staff assistant for the assistant secretary of defense (1970-1972). Paulson also worked as an assistant to John Ehrlichman from 1972-9173 during presidents Nixon’s administration. However, his most notable profession was at Goldman Sachs. Paulson joined Goldman in 1974. Goldman Sachs is notable investment banking, securities and investments management firm that is respected on Wall Street, and internationally. Over the years, Paulson grew at the company and eventually became the chairman and CEO. Paulson acquired immense experience and knowledge related to the financial markets while at Goldman. Paulson also gained the ability to analyze and explain economic scenarios.
Philosophy
The exposure at Goldman Sachs provided Paulson with the best platform to take the secretary of the Treasury docket. As a treasury secretary, Paulson dealt with taxes, financial market, federal spend and trade in the American economy. Paulson dealt with similar tasks while at Goldman Sachs. Paulson had also formed strong relations with China. With this in mind, President Bush found Paulson to be the ideal persons to restore investor’s confidence in the American economy. Paulson held the economic philosophy that an economy prospers when people save, spend and invest.
Henry Paulson is known for operating using the supply-side economy. The supply-side economy argues that e...

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... relief to the American citizen who was grappling with the credit crisis. The tax rebates lifted consumer spending especially for low income earners whose expenditure was more that their savings (Eisenstein, 142). Paulson also introduced tax relief for businesses thus giving organizations an opportunity to expand and boost the rate of employment. Thirdly, Paulson played a significant role in establishing a $700 billion bailout plan so as to buy securities overwhelmed by mortgage debts. Economist Henry Paulson was a strategic planner with a vision. Today, he would help the Obamas government in strategic planning and financial organization of functions that enhance long-term sustainability.

Works Cited

Woll, C. & Cliff, B. (2013). Economic patriotism in open economies. Routledge
Eisenstein, C. (2011). Sacred economies: money, gift and society. North Atlantic Books

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