Friday, October 5, 2007

Engine Charlie Returns, Sort Of

"Several Republican members of Congress yesterday called for a Treasury Department probe into whether Pentagon computer networks will be compromised by the merger of a U.S. network-equipment maker and a Chinese firm with links to Beijing's military. ... Government officials concerned about the deal have doubts about a Treasury review, because Mr. Paulson is a former executive at Goldman Sachs, which is advising 3Com on the deal. White House Chief of Staff Joshua B. Bolten was also a Goldman Sachs executive", Washington Times, 4 October.

How appropriate that this should be announced on Sputnik's 50th anniversary. I remember one of Ike's Defense Secretaries was Charles Wilson, formerly General Motors CEO. In 1952 "Engine Charlie" as he was known, told Congress, "What is good for the country is good for General Motors, and what is good for General Motors is good for the country". Apparently Mr. Paulson remembers the quote this way: What's good for Goldman Sachs is good for me and if it's good for me, it's good enough for the country. Imagine, Goldman Sachs has done a "leveraged buyout" of the whole US with virtually nothing down.

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