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Posts Tagged ‘Parasites

Fraudonomics- The big dirty secret of fraud crackdown

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When you use the Mafia as a business model, this result should be no surprise.

The big dirty secret of why you should worry about a fraud crackdown more than Goldman Sachs—revealed for the first time by an anonymous private equity ‘hypocrite’ and ‘liar.’

By Mark Ames

NYPress.com April 28, 2010

There was a strange moment last week during President Obama’s speech at Cooper Union. There he was, groveling before a cast of Wall Street villains including Goldman Sachs chief Lloyd Blankfein, begging them to “Look into your heart!” like John Turturro’s character in Miller’s Crossing…when out of the blue, the POTUS dropped this bombshell: “The only people who ought to fear the kind of oversight and transparency that we’re proposing are those whose conduct will fail this scrutiny.”

The Big Secret, of course, is that every living creature within a 100-mile radius of Cooper Union would fail “this scrutiny”—or that scrutiny, or any scrutiny, period. Not just in a 100-mile radius, but wherever there are still signs of economic life beating in these 50 United States, the mere whiff of scrutiny would work like nerve gas on what’s left of the economy. Because in the 21st century, fraud is as American as baseball, apple pie and Chevrolet Volts—fraud’s all we got left, Doc. Scare off the fraud with Obama’s “scrutiny,” and the entire pyramid scheme collapses in a heap of smoldering savings accounts.

That’s how an acquaintance of mine, a partner in a private equity firm, put it: “Whoever pops this fraud bubble is going to have to escape on the next flight out, faster than the Bin Laden Bunch fled Kentucky in their chartered jets after 9/11.”

And that’s why this SEC suit accusing Goldman Sachs of fraud is really just a negotiating bluff to give Obama’s people some leverage—or it’s supposed to be, anyway—according to the PE guy. He dismissed all the speculation that the fraud investigations would turn on other obvious villains like Deutsche, Merrill, Paulson & Co., the Rahm Emmanuel-linked Magnetar and so on.

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Journalism’s Parasites: access traders, double agents and watchdog turncoats

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Apr 15, 2010           TruthDig

By David Sirota

No matter how much this week’s Pulitzer Prize triumphalism hides it, the fact remains that journalism these days is “a disaster,” as Ted Koppel said recently. And unfortunately, retrospection dominates the news industry’s self-analysis. Like dazed tornado victims, most media experts focus on what happened and why, oh lord, why?

The queries are important, though just as critical are two prospective questions: (1) If, to butcher a Chinese aphorism, every crisis is an opportunity, then who is making an opportunity out of journalism’s current crisis, and (2) are those opportunity-maximizers actually parasites destroying journalism for the long haul?

The answer to the initial question is three groups, starting with the Access Traders. These are reporters like The New Yorker’s Ryan Lizza, Newsweek’s Jonathan Alter and NBC’s Chuck Todd, who, while covering politics for major media, are also signing separate contracts to write books chronicling White House gossip. Facing a crisis in audience share, these correspondents’ employers encourage the double-dip opportunities, hoping book exposure will result in residual attention. But the simultaneity is problematic: As The Washington Post’s Howard Kurtz notes, hard-hitting stories in these reporters’ day jobs “might alienate potential [book] sources and flattering ones might loosen tongues.”

The dynamic’s deleterious effect on journalism is obvious.

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Davos: The Bomb Shelter

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By Darryl Robert Schoon KitCo

Feb 9, 2010

Predators and parasites recently gathered in Davos to discuss the mounting problems of their prey. All present agreed the problem needed urgent attention.

Historian David Hackett Fisher describes this passing era as the period of Victorian Equilibrium. England’s Victorian Equilibrium, however, was built on banker’s credit, a foundation of sand; and like the story of Cinderella where the carriage turns into a pumpkin at midnight, the banker’s credit has now turned into defaulting debt and the fairy-tale world it built is collapsing.

Lies, lies and more lies

On February 5th, a Bloomberg headline reported: US Economy, Unemployment Unexpected Falls To 9.7%. Bloomberg’s headline was attempting to convey a more positive outlook for those considering additional borrowings to help restart the banker’s stalled engine of credit and debt (their credit and your debt); but the following chart tells the real story about US unemployment, a far different version than the optimistic story being spun by Bloomberg:

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