Wake-up Call

Resist the Corporate State

Posts Tagged ‘Ponzi scheme

Joe Bageant: Waltzing at the Doomsday Ball

with one comment

Capitalism is dead, but we still dance with the corpse

By Joe Bageant Deer Hunting with Jesus

July 6, 2010   Ajijic, Jalisco, Mexico

As an Anglo European white guy from a very long line of white guys, I want to thank all the brown, black, yellow and red people for a marvelous three-century joy ride. During the past 300 years of the industrial age, as Europeans, and later as Americans, we have managed to consume infinitely more than we ever produced, thanks to colonialism, crooked deals with despotic potentates and good old gunboats and grapeshot. Yes, we have lived, and still live, extravagant lifestyles far above the rest of you. And so, my sincere thanks to all of you folks around the world working in sweatshops, or living on two bucks a day, even though you sit on vast oil deposits. And to those outside my window here in Mexico this morning, the two guys pruning the retired gringo’s hedges with what look like pocket knives, I say, keep up the good work. It’s the world’s cheap labor guys like you — the black, brown and yellow folks who take it up the shorts — who make capitalism look like it actually works. So keep on humping. Remember: We’ve got predator drones.

After twelve generations of lavish living at the expense of the rest of the world, it is understandable that citizens of the so-called developed countries have come to consider it quite normal. In fact, Americans expect it to become plusher in the future, increasingly chocked with techno gadgetry, whiz bang processed foodstuffs, automobiles, entertainments, inordinately large living spaces — forever.

Read the rest of this entry »

Fraudonomics- The big dirty secret of fraud crackdown

leave a comment »

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.

Read the rest of this entry »

Research suggests government manipulated stocks in ’09

leave a comment »

TrimTabs suggests government manipulated stocks

Analysts say government’s financial rescues have fueled conspiracy theories

By Nick Godt, MarketWatch Jan. 5, 2010, 5:47 p.m.

NEW YORK (MarketWatch) — The unusual circumstances that led the U.S. market to rally powerfully in 2009 might be explained by secret government moves to buy stocks, according to Charles Biderman, the founder and chief executive of TrimTabs, a research firm that tracks liquidity flows in the market.

“We cannot identify the source of the new money that pushed stock prices up so far so fast,” Biderman said in a statement Tuesday………..

Read the rest of this entry »

History’s greatest Ponzi scheme

with one comment

scavengerPost Carbon Institute’s Richard Heinberg writes about our ailing economy and alternative solutions in this article: Temporary Recession or the End of Growth?

“…Given that growth cannot continue on a finite planet, this wager, and its embodiment in the institutions of finance, can be said to constitute history’s greatest Ponzi scheme.

 We have justified present borrowing with the irrational belief that perpetual growth is possible, necessary, and inevitable. In effect we have borrowed from future generations so that we could gamble away their capital today.

Until recently, the Peak Oil argument has been framed as a forecast: the inevitable decline in world petroleum production, whenever it occurs, will kill growth. But here is where forecast becomes diagnosis: during the period from 2005 to 2008, energy stopped growing and oil prices rose to record levels. By July of 2008, the price of a barrel of oil was nudging close to $150—half again higher than any previous petroleum price in inflation-adjusted terms—and the global economy was beginning to topple……

……..a good argument can be made that speculation in oil futures was merely magnifying price moves that were inevitable on the basis of the fundamentals of supply and demand……

About 85 percent of our current energy is derived from three primary sources—oil, natural gas, and coal—that are non-renewable, whose price is likely to trend sharply higher over the next years and decades leading to severe shortages, and whose environmental impacts are unacceptable. While these sources historically have had very high economic value, we cannot rely on them in the future; indeed, the longer the transition to alternative energy sources is delayed, the more difficult that transition will be unless some practical mix of alternative energy systems can be identified that will have superior economic and environmental characteristics.”

Transparency Abandoned as Fed and Treasury Plunder Taxpayers

leave a comment »

 Group-Think at NY Fed         cabalIt might be useful to look again at the Slate column written May 6, 2009 by Eliot Spitzer: Fed Dread .

After discussing the inbreeding rampant in both the banks and the NY Fed Reserve Board of Governors, Spitzer comments:

is it any wonder that the N.Y. Fed has been complicit in the single greatest bailout of poorly managed banks in history? Any wonder that it has given—with virtually no strings attached—practically the entire contents of the Treasury to the very banks whose inability to manage risk has brought our economy to its knees? Any wonder that not a single CEO or senior executive of a major bank has been removed as a condition of hundreds of billions of direct cash and guarantees? Any wonder that, despite its fundamental responsibility to preserve the integrity of the banking system, it sat quietly on the sidelines as the leverage beneath the banks exploded and the capital underlying their investments shrank?

No one has or looks likely to be help accountable.  Buddies are being bailed out.  Banksters who should be doing perp-walks continue to reign in their fiefdoms poised to finish off our economy.  Spitzer’s call for reform is ignored.

Now watch this great video:   Spitzer et al on the Fed scamming  the American people- http://www.msnbc.msn.com/id/21134540/vp/32124060#32124060

UPDATE: See here Glenn Greenwald’s exposure of  Obama Treasury officials’  clash with Neil Barofsky, the chief watchdog over the $700 billion TARP bank bailout program, and their efforts to prevent transpanency. 

As Greenwald writes:  “Barofsky wants to compel banks to account for those funds and then publicize that information, while the administration opposes such efforts, claiming that accounting for TARP monies is impossible due to the “fungibility” of those funds.” ……And  “the Obama administration is now attempting to induce the Justice Department to issue a ruling that Barofsky’s office is not independent at all.”

The plundering continues……..

Written by laudyms

July 26, 2009 at 11:17 am