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Author Topic: "The Economy Won't Recover Until We Prosecute"  (Read 1923 times)
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WhiskeyGirl
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« on: October 15, 2009, 07:35:11 PM »

"The Ongoing Cover Up of the Truth Behind the Financial Crisis May Lead to Another Crash"

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Indeed, as I have previously documented, 7 out of the 8 giant, money center banks went bankrupt in the 1980's during the "Latin American Crisis", and the government's response was to cover up their insolvency.

Black also says:

There has been no honest examination of the crisis because it would embarrass C.E.O.s and politicians . . .

Instead, the Treasury and the Fed are urging us not to examine the crisis and to believe that all will soon be well.


Did all the TARP recipients go bankrupt overnight? Money disappear?  Will someone please explain how that happened?

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PhD economist Dean Baker made a similar point, lambasting the Federal Reserve for blowing the bubble, and pointing out that those who caused the disaster are trying to shift the focus as fast as they can:

The current craze in DC policy circles is to create a "systematic risk regulator" to make sure that the country never experiences another economic crisis like the current one. This push is part of a cover-up of what really went wrong and does absolutely nothing to address the underlying problem that led to this financial and economic collapse.

Did the money disappear overnight?  Did people in charge at these banks and institutions have any woarning?  Were they incompetent?

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In addition, if we don't know what's really going on, we can't gauge whether the government's economic policies are working. For example, Time Magazine called Tim Geithner a "con man" and the stress tests a "confidence game" because those tests were so inaccurate.

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One of the foremost experts on structured finance and derivatives - Janet Tavakoli - says that rampant fraud and Ponzi schemes caused the financial crisis.

University of Texas economics professor James K. Galbraith agrees:

You had fraud in the origination of the mortgages, fraud in the underwriting, fraud in the ratings agencies.

And, you have the job rotation between the Treasury, Federal Reserve, Wall Street, government, and regulators.

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The Economy Won't Recover Until We Prosecute

So there was a little fraud, no big deal, right?

Wouldn't looking backwards at fraudulent conduct be distracting for the people, the government, and the economy? Shouldn't we look forward so we can recover?

No.

Specifically, the Wharton School of Business has written an essay stating that restoring trust is the key to recovery, and that trust cannot be restored until wrongdoers are held accountable.

The Wharton paper states:

The public will need to "hold the perpetrators of the economic disaster responsible and take what actions they can to prevent them from harming the economy again." In addition, the public will have to see proof that government and business leaders can behave responsibly before they will trust them again...

read more here - http://www.globalresearch.ca/index.php?context=va&aid=15687
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All my posts are just my humble opinions.  Please take with a grain of salt.  Smile

It doesn't do any good to hate anyone,
they'll end up in your family anyway...
WhiskeyGirl
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« Reply #1 on: October 15, 2009, 07:44:50 PM »

For some reason, capitalism isn't working...

"As Goldman Gloats, What Does It Matter For Us?"

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Goldman Sachs played the same game as Bear Stearns and Lehman Brothers—they made lousy investments financed with borrowed money. When the assets fell in value, Bear and Lehman died. They were reckless with other people's money.
 
But Goldman Sachs is still here, Why?

Part of the reason is that maybe they took a little less risk and maybe hedged against that risk a little better. But part of the reason Goldman lives and thrives is that the government bailed out AIG. Almost 13 BILLION dollars of the money the government sent to AIG went out the door and over to Goldman Sachs. This money included loans and insurance Goldman bought on its bad bets. Some of that insurance turned out to be a bad bet, too. But Goldman didn't bear the cost. The taxpayers did.

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But capitalism is a profit and loss system. The profits encourage risk-taking. The losses encourage prudence. If the taxpayer almost always eats the losses for the losers, you don't have capitalism. You have crony capitalism.

"What's the virtue of saving crony capitalism?"

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We have a financial system that not only rewards cronies, and encourages recklessness. It also funnels precious capital into areas like the housing sector instead of into more productive investments.

http://www.npr.org/templates/story/story.php?storyId=113841487

We don't have capitalism, we have the job rotation.  A money supply run by a private bank, that seems to benefit foreign companies, banks, casino banks, and seems to be destroying the future of Main Street.

Why measure the recession/depression by just a limited slice of the economy - Wall Street.

Wall Street, what is it good for?  Debt?  Grim Reaper?

What about measuring the success of the nation by the prosperity of Main Street?

When Main Street prospers, people have money in their pockets, a good job, steady income...life is good.

When Wall Street prospers, Main Street seems only to 'share' the debt and losses.

jmho

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All my posts are just my humble opinions.  Please take with a grain of salt.  Smile

It doesn't do any good to hate anyone,
they'll end up in your family anyway...
WhiskeyGirl
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« Reply #2 on: October 15, 2009, 08:38:44 PM »

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The news reports attribute the huge profits to "trading." But trading is a broad category. And our guess is that if you look more closely you will find that JPMorgan made its money the old fashioned way - by ripping off the government.

'You mean, JPMorgan took the feds' money and now is showing huge profits because it is just lending money back to the people they got it from?'

Yes. But not only that. They're also probably speculating on gold, oil and stocks...along with everyone else. The feds' money has pushed all these speculative trades into profit.

'And now, they're going to pay themselves big bonuses, aren't they?'

Yes. The papers tell us, "bonuses explode on Wall Street to a new record."

'So, then...when the next crisis comes...they won't have any money in the banks, will they?'

Nope.

'So they'll have to get bailed out again.'

Yep.

'But maybe the next time the feds will wise up and just let them go broke.'

Not a chance. Wall Street has plenty of friends in the highest places in Washington. A report in today's media tells us that "Geithner Aides Reaped Millions Working for Banks, Hedge Funds." The aides earn about $150,000 for their government work. On the side, they advise the financial firms they're supposed to be regulating, and get paid millions.

Such a nice relationship. They make sure Wall Street prospers - even when it does stupid things. Wall Street makes sure they prosper - even when they advise the government to do stupid things. And when their gig is over in Washington they go back to Wall Street where they earn millions more. America's centers of political and financial power have a cozy little game going. It won't end any time soon. It's too profitable for both of them.

read the rest here - http://www.dailyreckoning.com.au/is-the-real-economy-growing-expanding-and-making-money/2009/10/16/

We just have one crisis after another, and Congress doesn't seem to represent the folks on Main Street.  Time for a clean sweep...

jmho
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All my posts are just my humble opinions.  Please take with a grain of salt.  Smile

It doesn't do any good to hate anyone,
they'll end up in your family anyway...
WhiskeyGirl
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« Reply #3 on: October 16, 2009, 07:31:59 AM »

The world did not collapse alonge with Bear Sterns and Lehman.  Any effect on Main Street?  Would anyone have noticed if Goldman and the other TARP recipients had disappeared as well?

I think taxpayers would be better off, the debt lower, and Main Street would have access to prosperity.

Should the US banking system and currency be run/influenced by folks that make money on the misery on Main Street?  

The more the dollar falls, the more Wall Street seems to make.

The higher unemployment, the more Wall Street seems to make.

The higher the US debt, the more Wall Street seems to make.


What is wrong with this system?

When will the US currency work for those on Main Street?

Bank failures on Main Street have a ripple effect.  There is no money for prosperity, small businesses, the little people.

Bank failures on Wall Street, does anyone on Main Street notice?  For some reason, taxpayers are taking a hit because some on Wall Street gambled and lost.  The casino is open again.

What is wrong with this picture?

When will government work for Main Street?

When will the Obama administration be for ALL the people and not just those on Wall Street, in foreign countries, foreigners, and large global corporations?
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All my posts are just my humble opinions.  Please take with a grain of salt.  Smile

It doesn't do any good to hate anyone,
they'll end up in your family anyway...
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