Peacenik doesn't have any sympathy for Bernie Madoff. And Peacenik doesnt' have any sympathy for some of the people who lost money with Bernie. Investments too good to be true, probably aren't true.
Peacenik has said it before. Wall St. is a casino. Any money anyone invests in Wall St. is gambling money. The laws governing Wall St. are not being enforced. The game is rigged. It is laughable that this huge Ponzi scheme has resulted in only one prosecution. Why aren't the laws and regulations being enforced? Because the guilty have bribed and bought the regulators. And also because the whole of Wall St. has become a Ponzi scheme. To regulate it is to blow down the house of cards. But the house of cards is coming down anyways. Peacenik says cash out and hunker down.
Don't get Madoff, get even: Bernie Madoff may deserve his 150-year jail sentence – but he wasn't the biggest crook on Wall Street
by Richard Adams
Everyone knew that Bernie Madoff was going down – since he had already pleaded guilty to running a fake investment scheme worth between $65bn and $171bn. So there was none of the drama that accompanied fraud trials like that of Jeffrey Skilling, who maintained his innocence even after he was convicted for his part in the collapse of Enron. The only question today was how long inside Madoff would get. His lawyers suggested – in a spirit of optimism only paid advocates could muster – that Madoff deserved just 12 years in jail. The judge gave him the maximum 150. So, with time off for good behaviour, Bernie will be out in time to celebrate his 146th birthday in 2084.
In other words, barring a judicial miracle, the 71-year-old Madoff will spend the rest of his life behind bars. In terms of discouraging others from selling their souls in return for enjoying 20 years of wealth and prestige, Madoff's sentence is a good thing. And it is tempting to indulge in schadenfreude at Madoff's expense, after he had indulged in riches and privilege at the expense of others. But the worst result of Madoff's life sentence is that he becomes the face of the circa-2008 financial tsunami – and that he doesn't deserve, even if he deserves to rot behind bars.
Read on...
Showing posts with label wall street. Show all posts
Showing posts with label wall street. Show all posts
4/20/09
Barack Obama: Crime Boss
by Stephen Lendman / April 18th, 2009
Since taking office, Obama, wittingly or otherwise, has headed the largest criminal enterprise in history — the mass looting of national wealth to enrich his Wall Street benefactors. He assembled a rogue economic team of Clinton/Robert Rubin retreads — to fix the current crisis they engineered.
In a March 13 article, (author and former Republican strategist) Kevin Phillips called them “recycled senior (Clinton administration) Democrats (responsible for the) tech mania, deregulation binge and (1997-2000) stock market bubble and crash. (Obama) extend(ed) the (disastrous) mismanagement and pro-Wall Street bias of the 2008 Bush regime bailout.”
He called Geithner and Bernanke “hapless,” the result of their ruinous misjudgments (and, along with Alan Greenspan, complicit) with finance-sector malfeasance.”
Read on...
Peacenik is a fan of Obama. Or Peacenik was a fan of Obama. Peacenik is all mixed up. Peacenik thinks Obama is screwing up the finanacial rescue for the benefit of the crooks on Wall St. But maybe Obama knows something Peacenik doesn't know. Obama does a few things that seem reasonable...overtures to Iran and Cuba; then Obama does outrageous things....financial bailout for the banks....screwing the autoworkers union....and turning a blind eye to torture. Peacenik thinks there should be a special prosecutors for torture and Wall St. Can you be president and not be a crime boss? Maybe not.
In a March 13 article, (author and former Republican strategist) Kevin Phillips called them “recycled senior (Clinton administration) Democrats (responsible for the) tech mania, deregulation binge and (1997-2000) stock market bubble and crash. (Obama) extend(ed) the (disastrous) mismanagement and pro-Wall Street bias of the 2008 Bush regime bailout.”
He called Geithner and Bernanke “hapless,” the result of their ruinous misjudgments (and, along with Alan Greenspan, complicit) with finance-sector malfeasance.”
Read on...
Peacenik is a fan of Obama. Or Peacenik was a fan of Obama. Peacenik is all mixed up. Peacenik thinks Obama is screwing up the finanacial rescue for the benefit of the crooks on Wall St. But maybe Obama knows something Peacenik doesn't know. Obama does a few things that seem reasonable...overtures to Iran and Cuba; then Obama does outrageous things....financial bailout for the banks....screwing the autoworkers union....and turning a blind eye to torture. Peacenik thinks there should be a special prosecutors for torture and Wall St. Can you be president and not be a crime boss? Maybe not.
3/23/09
Financial Policy Despair
By PAUL KRUGMAN
Published: March 22, 2009
Over the weekend The Times and other newspapers reported leaked details about the Obama administration’s bank rescue plan, which is to be officially released this week. If the reports are correct, Tim Geithner, the Treasury secretary, has persuaded President Obama to recycle Bush administration policy — specifically, the “cash for trash” plan proposed, then abandoned, six months ago by then-Treasury Secretary Henry Paulson.
This is more than disappointing. In fact, it fills me with a sense of despair.
Read on...
Peacenik was getting bummed out by some of the hockey results on the weekend. Habs lose to the lowly leafs. Canucks lose to the lowly Coyotes. And Peacenik isn't winning the March Madness pool. Then Peacenik read the reviews for Obama's "new" rescue of the banks and their toxic assets. Then Peacenik sees on the front page of this morning's Globe that Ottawa and Canadian banks are taking action on mortgages. But Ottawa just told Peacenik that there were no problems in Canada. That Canada was special.
The black hole of financial armagedden is staring Peacenik and the world in the face this cool Monday morning. Krugman thinks the world may be down to its last chance. Read Taibbi in the Rolling Stone, or this from Naked Capitalism. Wall St. and the banks don't deserve to be rescued. They deserve to be in jail. But Wall St. will probably rally a bit on Obama's rescue plan. Then reality will bite hard. The banks can't be rescued. The economy can't be saved. The black hole wins.
Published: March 22, 2009
Over the weekend The Times and other newspapers reported leaked details about the Obama administration’s bank rescue plan, which is to be officially released this week. If the reports are correct, Tim Geithner, the Treasury secretary, has persuaded President Obama to recycle Bush administration policy — specifically, the “cash for trash” plan proposed, then abandoned, six months ago by then-Treasury Secretary Henry Paulson.
This is more than disappointing. In fact, it fills me with a sense of despair.
Read on...
Peacenik was getting bummed out by some of the hockey results on the weekend. Habs lose to the lowly leafs. Canucks lose to the lowly Coyotes. And Peacenik isn't winning the March Madness pool. Then Peacenik read the reviews for Obama's "new" rescue of the banks and their toxic assets. Then Peacenik sees on the front page of this morning's Globe that Ottawa and Canadian banks are taking action on mortgages. But Ottawa just told Peacenik that there were no problems in Canada. That Canada was special.
The black hole of financial armagedden is staring Peacenik and the world in the face this cool Monday morning. Krugman thinks the world may be down to its last chance. Read Taibbi in the Rolling Stone, or this from Naked Capitalism. Wall St. and the banks don't deserve to be rescued. They deserve to be in jail. But Wall St. will probably rally a bit on Obama's rescue plan. Then reality will bite hard. The banks can't be rescued. The economy can't be saved. The black hole wins.
12/12/08
Prominent Trader Accused of Defrauding Clients
By DIANA B. HENRIQUES and ZACHERY KOUWEPublished: December 11, 2008
But on Thursday morning, this consummate trader, Bernard L. Madoff, was arrested at his Manhattan home by federal agents who accused him of running a multibillion-dollar fraud scheme — perhaps the largest in Wall Street’s history.
Regulators have not yet verified the scale of the fraud. But the criminal complaint filed against Mr. Madoff on Thursday in federal court in Manhattan reports that he estimated the losses at $50 billion. “We are alleging a massive fraud — both in terms of scope and duration,” said Linda Chatman Thomsen, director of the enforcement division at the Securities and Exchange Commission. “We are moving quickly and decisively to stop the fraud and protect remaining assets for investors.”
Peacenik woke up this morning and Conjure Bag was officially calling a depression. The Dow futures were way down. The goofballs on CNBC were freaking. Peacenik is on a day off and is now watching CNBC. Equador just defaulted on its foreign debt. GM just announced that it will shutdown for Jan. and part of Feb. Yes the news is all bad. The GOP had no problem giving $700 billion to the banks with no strings attached but $14 billion for the auto industry was too much unless the unions were destroyed. Oh, and by the way, this post has one of Wall Street's most respected persons admitting that his business was a Ponzi Scheme and $50 billion has gone poof. Why would anyone have money in the stock market? Lucky this is Friday. Peacenik is going to have a beer. Have a good weekend.
On Wall Street, his name is legendary. With money he had made as a lifeguard on the beaches of Long Island, he built a trading powerhouse that had prospered for more than four decades. At age 70, he had become an influential spokesman for the traders who are the hidden gears of the marketplace.
But on Thursday morning, this consummate trader, Bernard L. Madoff, was arrested at his Manhattan home by federal agents who accused him of running a multibillion-dollar fraud scheme — perhaps the largest in Wall Street’s history.
Regulators have not yet verified the scale of the fraud. But the criminal complaint filed against Mr. Madoff on Thursday in federal court in Manhattan reports that he estimated the losses at $50 billion. “We are alleging a massive fraud — both in terms of scope and duration,” said Linda Chatman Thomsen, director of the enforcement division at the Securities and Exchange Commission. “We are moving quickly and decisively to stop the fraud and protect remaining assets for investors.”
Peacenik woke up this morning and Conjure Bag was officially calling a depression. The Dow futures were way down. The goofballs on CNBC were freaking. Peacenik is on a day off and is now watching CNBC. Equador just defaulted on its foreign debt. GM just announced that it will shutdown for Jan. and part of Feb. Yes the news is all bad. The GOP had no problem giving $700 billion to the banks with no strings attached but $14 billion for the auto industry was too much unless the unions were destroyed. Oh, and by the way, this post has one of Wall Street's most respected persons admitting that his business was a Ponzi Scheme and $50 billion has gone poof. Why would anyone have money in the stock market? Lucky this is Friday. Peacenik is going to have a beer. Have a good weekend.
12/4/08
Too Big Not To Fail
We need to stop using the bailouts to rebuild gigantic financial institutions.
By Eliot SpitzerPosted Wednesday, Dec. 3, 2008, at 5:59 PM ET
Last month, as the financial crisis and the government rescue plan dominated headlines, almost everyone overlooked a news item that could have enormous long-term impact: GE Capital announced the acquisition of five mid-size airplanes—with an option to buy 20 more—produced by CACC, a new, Chinese-government-sponsored airline manufacturer.
Why is that so significant? Two reasons: First, just as small steps signaled the Asian entry into our now essentially bankrupt auto sector 50 years ago, so the GE acquisition signals Asia's entry into one of our few remaining dominant manufacturing sectors. Boeing is still the world's leading commercial aviation company. CACC's emergence—and its particular advantage selling to Asian markets—means that Boeing now faces the rigors of an entirely new competitive playing field and that our commercial airplane sector is likely to suffer enormously over the coming decades.
Read on...
Peacenik welcomes Eliot Spitzer back from purgatory. Don't forget this story. Spitzer was a major thorn in Wall Street and looks like he will continue to be. Peacenik thinks Spitzer would approve of Canada's Conservative government just shutting down and doing nothing to solve the economic crisis. There is a wide body of opinion that believes all government efforts so far have not helped the situation. Ergo, no government, no problem. No leadership no problem. No policy no problem. Has Canada fluked its way into solving the global economic collapse? Stevie Harper thinks so.
By Eliot SpitzerPosted Wednesday, Dec. 3, 2008, at 5:59 PM ET
Last month, as the financial crisis and the government rescue plan dominated headlines, almost everyone overlooked a news item that could have enormous long-term impact: GE Capital announced the acquisition of five mid-size airplanes—with an option to buy 20 more—produced by CACC, a new, Chinese-government-sponsored airline manufacturer.
Why is that so significant? Two reasons: First, just as small steps signaled the Asian entry into our now essentially bankrupt auto sector 50 years ago, so the GE acquisition signals Asia's entry into one of our few remaining dominant manufacturing sectors. Boeing is still the world's leading commercial aviation company. CACC's emergence—and its particular advantage selling to Asian markets—means that Boeing now faces the rigors of an entirely new competitive playing field and that our commercial airplane sector is likely to suffer enormously over the coming decades.
Read on...
Peacenik welcomes Eliot Spitzer back from purgatory. Don't forget this story. Spitzer was a major thorn in Wall Street and looks like he will continue to be. Peacenik thinks Spitzer would approve of Canada's Conservative government just shutting down and doing nothing to solve the economic crisis. There is a wide body of opinion that believes all government efforts so far have not helped the situation. Ergo, no government, no problem. No leadership no problem. No policy no problem. Has Canada fluked its way into solving the global economic collapse? Stevie Harper thinks so.
11/14/08
Paulson can't buy toxic mortgages, b/c they don't exist
I'm not an economist, and although I have a 401K and a few paltry investments, I mostly don't follow the stock market or speak the lingo. But since I'd been diligently listening to the news, I thought I understood a little bit about what was happening in the subprime mortgage meltdown.
It turns out, I understood much less than I thought, and maybe I'm not alone... follow me over the jump.
So we've been hearing it's the fault of greedy home buyers who ran out and purchased homes they couldn't afford. Or, conversely, maybe it was the fault of predatory lenders who made bad loans. Round and round the blame seemed to go. So I was completely baffled by Henry Paulson's announcement yesterday that it wouldn't help to buy up the toxic mortgages as promised in the bailout.
Peacenik understands that there will be serious consequences if something isn't done to try and halt the collapse of the financial system. Peacenik is not vindictive. But shouldn't someone be charged with something by now? Shouldn't there be some high profile investigations going on? This financial collapse is the direct result of fraud. And taxpayers are now trying to save the people who committed the fraud. This post on Daily Kos links to a long story about what happened. It is worth reading.
10/22/08
Wall Street Hustlers Built a $100 Trillion House of Cards and Stuck You with the Fallout
By Joshua Holland, AlterNet. Posted October 22, 2008.
Deregulation brought us hugely "leveraged" investments, and they brought us panicked markets and pain.
Debate over who is most to blame for the financial meltdown rages on against a backdrop of economic pain and anxiety that's unprecedented in the post-war era.
The bottom line: There was a feeding frenzy that drove housing prices far beyond what the fundamental laws of supply and demand would dictate. People certainly got in over their heads, but the ultimate responsibility for that lies with the investment bankers who cooked up exotic new ways to make risky investments look more secure than they actually were (I wrote about it recently here).
While the U.S. housing market is worth somewhere in the neighborhood of $10 trillion, it was Wall Street's wheeler-dealers -- and their lobbyists and allies who kept regulators out of their business -- who built a house of cards out of "exotic" mortgage-backed securities and other "derivatives" worth as much as 60 times that figure -- paper wealth backed by little more than the irrational belief that what goes up will never come down.
Read on...
Peacenik thought this was a pretty straightforward explanation of the root causes of the current financial crisis.
Deregulation brought us hugely "leveraged" investments, and they brought us panicked markets and pain.
Debate over who is most to blame for the financial meltdown rages on against a backdrop of economic pain and anxiety that's unprecedented in the post-war era.
The bottom line: There was a feeding frenzy that drove housing prices far beyond what the fundamental laws of supply and demand would dictate. People certainly got in over their heads, but the ultimate responsibility for that lies with the investment bankers who cooked up exotic new ways to make risky investments look more secure than they actually were (I wrote about it recently here).
While the U.S. housing market is worth somewhere in the neighborhood of $10 trillion, it was Wall Street's wheeler-dealers -- and their lobbyists and allies who kept regulators out of their business -- who built a house of cards out of "exotic" mortgage-backed securities and other "derivatives" worth as much as 60 times that figure -- paper wealth backed by little more than the irrational belief that what goes up will never come down.
Read on...
Peacenik thought this was a pretty straightforward explanation of the root causes of the current financial crisis.
Subscribe to:
Posts (Atom)