Best of the Week
Most Popular
1. Gold vs Cash in a Financial Crisis - Richard_Mills
2.Current Stock Market Rally Similarities To 1999 - Chris_Vermeulen
3.America See You On The Dark Side Of The Moon - Part2 - James_Quinn
4.Stock Market Trend Forecast Outlook for 2020 - Nadeem_Walayat
5.Who Said Stock Market Traders and Investor are Emotional Right Now? - Chris_Vermeulen
6.Gold Upswing and Lessons from Gold Tops - P_Radomski_CFA
7.Economic Tribulation is Coming, and Here is Why - Michael_Pento
8.What to Expect in Our Next Recession/Depression? - Raymond_Matison
9.The Fed Celebrates While Americans Drown in Financial Despair - John_Mauldin
10.Hi-yo Silver Away! - Richard_Mills
Last 7 days
UK Coronavirus Infections and Deaths Trend Trajectory - Deviation Against Forecast - 1st Apr 20
Huge Unemployment Is Coming. Will It Push Gold Prices Up? - 1st Apr 20
Gold Powerful 2008 Lessons That Apply Today - 1st Apr 20
US Coronavirus Infections and Deaths Projections Trend Forecast - Video - 1st Apr 20
From Global Virus Acceleration to Global Debt Explosion - 1st Apr 20
UK Supermarkets Coronavirus Panic Buying Before Lock Down - Tesco Empty Shelves - 1st Apr 20
Gold From a Failed Breakout to a Failed Breakdown - 1st Apr 20
P FOR PANDEMIC - 1st Apr 20
The Past Stock Market Week Was More Important Than You May Understand - 31st Mar 20
Coronavirus - No, You Do Not Hear the Fat Lady Warming Up - 31st Mar 20
Life, Religions, Business, Globalization & Information Technology In The Post-Corona Pandemics Age - 31st Mar 20
Three Charts Every Stock Market Trader and Investor Must See - 31st Mar 20
Coronavirus Stocks Bear Market Trend Forecast - Video - 31st Mar 20
Coronavirus Dow Stocks Bear Market Into End April 2020 Trend Forecast - 31st Mar 20
Is it better to have a loan or credit card debt when applying for a mortgage? - 31st Mar 20
US and UK Coronavirus Trend Trajectories vs Bear Market and AI Stocks Sector - 30th Mar 20
Are Gold and Silver Mirroring 1999 to 2011 Again? - 30th Mar 20
Stock Market Next Cycle Low 7th April - 30th Mar 20
United States Coronavirus Infections and Deaths Trend Forecasts Into End April 2020 - 29th Mar 20
Some Positives in a Virus Wracked World - 29th Mar 20
Expert Tips to Save on Your Business’s Office Supply Purchases - 29th Mar 20
An Investment in Life - 29th Mar 20
Sheffield Coronavirus Pandemic Infections and Deaths Forecast - 29th Mar 20
UK Coronavirus Infections and Deaths Projections Trend Forecast - Video - 28th Mar 20
The Great Coronavirus Depression - Things Are Going to Change. Here’s What We Should Do - 28th Mar 20
One of the Biggest Stock Market Short Covering Rallies in History May Be Imminent - 28th Mar 20
The Fed, the Coronavirus and Investing - 28th Mar 20
Women’s Fashion Trends in the UK this 2020 - 28th Mar 20
The Last Minsky Financial Snowflake Has Fallen – What Now? - 28th Mar 20
UK Coronavirus Infections and Deaths Projections Trend Forecast Into End April 2020 - 28th Mar 20
DJIA Coronavirus Stock Market Technical Trend Analysis - 27th Mar 20
US and UK Case Fatality Rate Forecast for End April 2020 - 27th Mar 20
US Stock Market Upswing Meets Employment Data - 27th Mar 20
Will the Fed Going Nuclear Help the Economy and Gold? - 27th Mar 20
What you need to know about the impact of inflation - 27th Mar 20
CoronaVirus Herd Immunity, Flattening the Curve and Case Fatality Rate Analysis - 27th Mar 20
NHS Hospitals Before Coronavirus Tsunami Hits (Sheffield), STAY INDOORS FINAL WARNING! - 27th Mar 20
CoronaVirus Curve, Stock Market Crash, and Mortgage Massacre - 27th Mar 20
Finding an Expert Car Accident Lawyer - 27th Mar 20
We Are Facing a Depression, Not a Recession - 26th Mar 20
US Housing Real Estate Market Concern - 26th Mar 20
Covid-19 Pandemic Affecting Bitcoin - 26th Mar 20
Italy Coronavirus Case Fataility Rate and Infections Trend Analysis - 26th Mar 20
Why Is Online Gambling Becoming More Popular? - 26th Mar 20
Dark Pools of Capital Profiting from Coronavirus Stock Markets CRASH! - 26th Mar 20
CoronaVirus Herd Immunity and Flattening the Curve - 25th Mar 20
Coronavirus Lesson #1 for Investors: Beware Predictions of Stock Market Bottoms - 25th Mar 20
CoronaVirus Stock Market Trend Implications - 25th Mar 20
Pandemonium in Precious Metals Market as Fear Gives Way to Command Economy - 25th Mar 20
Pandemics and Gold - 25th Mar 20
UK Coronavirus Hotspots - Cities with Highest Risks of Getting Infected - 25th Mar 20
WARNING US Coronavirus Infections and Deaths Going Ballistic! - 24th Mar 20
Coronavirus Crisis - Weeks Where Decades Happen - 24th Mar 20
Industry Trends: Online Casinos & Online Slots Game Market Analysis - 24th Mar 20
Five Amazingly High-Tech Products Just on the Market that You Should Check Out - 24th Mar 20
UK Coronavirus WARNING - Infections Trend Trajectory Worse than Italy - 24th Mar 20
Rick Rule: 'A Different Phrase for Stocks Bear Market Is Sale' - 24th Mar 20
Stock Market Minor Cycle Bounce - 24th Mar 20
Gold’s century - While stocks dominated headlines, gold quietly performed - 24th Mar 20
Big Tech Is Now On The Offensive Against The Coronavirus - 24th Mar 20
Socialism at Its Finest after Fed’s Bazooka Fails - 24th Mar 20
Dark Pools of Capital Profiting from Coronavirus Stock and Financial Markets CRASH! - 23rd Mar 20
Will Trump’s Free Cash Help the Economy and Gold Market? - 23rd Mar 20
Coronavirus Clarifies Priorities - 23rd Mar 20
Could the Coronavirus Cause the Next ‘Arab Spring’? - 23rd Mar 20
Concerned About The US Real Estate Market? Us Too! - 23rd Mar 20
Gold Stocks Peak Bleak? - 22nd Mar 20
UK Supermarkets Coronavirus Panic Buying, Empty Tesco Shelves, Stock Piling, Hoarding Preppers - 22nd Mar 20
US Coronavirus Infections and Deaths Going Ballistic as Government Start to Ramp Up Testing - 21st Mar 20
Your Investment Portfolio for the Next Decade—Fix It with the “Anti-Stock” - 21st Mar 20
CORONA HOAX: This Is Almost Completely Contrived and Here’s Proof - 21st Mar 20
Gold-Silver Ratio Tops 100; Silver Headed For Sub-$10 - 21st Mar 20
Coronavirus - Don’t Ask, Don’t Test - 21st Mar 20
Napag and Napag Trading Best Petroleum & Crude Oil Company - 21st Mar 20
UK Coronavirus Infections Trend Trajectory Worse than Italy - Government PANICs! Sterling Crashes! - 20th Mar 20
UK Critical Care Nurse Cries at Empty SuperMarket Shelves, Coronavirus Panic Buying Stockpiling - 20th Mar 20
Coronavirus Is Not an Emergency. It’s a War - 20th Mar 20
Why You Should Invest in the $5 Gold Coin - 20th Mar 20
Four Key Stock Market Questions To This Coronavirus Crisis Everyone is Asking - 20th Mar 20
Gold to Silver Ratio’s Breakout – Like a Hot Knife Through Butter - 20th Mar 20
The Coronavirus Contraction - Only Cooperation Can Defeat Impending Global Crisis - 20th Mar 20
Is This What Peak Market Fear Looks Like? - 20th Mar 20
Alessandro De Dorides - Business Consultant - 20th Mar 20
Why a Second Depression is Possible but Not Likely - 20th Mar 20

Market Oracle FREE Newsletter

Coronavirus-bear-market-2020-analysis

Propaganda from the Mainstream Press on the SEC-Goldman Case

Politics / Mainstream Media Apr 21, 2010 - 05:08 PM GMT

By: Mike_Stathis

Politics

Best Financial Markets Analysis ArticleI want you to read an article by the Associated Press. As you will see, it was very deficient, hardly critical of the SEC and the banking fraud, and left out key issues.  

This is just another example how the media brainwashes the public. I run across this type of deceit all day every day. The article is in italics. My comments follow.  


Goldman Case Shows Power of SEC's Bully Pulpit

The Securities and Exchange Commission's fraud case against Goldman Sachs signals a new era of toughness for an agency beset by a series of public blunders.

This statement is complete bullshit. Show me the executives of the major banks in prison serving 30-year terms with no parole, and then I'll be convinced of "a new era of toughness" for the SEC.

Yet as it aims to become a tougher cop, the SEC faces a new obstacle: Banks have grown faster than the penalties the agency typically imposes. The sheer size of Goldman — whose quarterly profit just hit $3.3 billion — means court-approved penalties are likely to be too small to hurt it financially.

This is practically the only accurate statement made in the entire article.

But current and former SEC officials say penalties aren't the agency's most potent tool. The SEC's statements and actions often carry higher costs: Boards remove managements. Shareholders file their own lawsuits. Investors sell off company stock. And potential clients defect to competitors.

Bullshit. There are no "higher costs." If the SEC imposed adequate penalties to discourage fraud, it would eventually be virtually non-existent. Instead, they want you to think there are “other adverse ramifications” none of which are guaranteed and none of which will do anything.  Reading this statement makes my blood boil because it’s intended to deceive the public.  

"The weapons in the commission's arsenal are many, but the bully pulpit is unmatched," said former SEC spokesman Michael Robinson. "Once the SEC makes an announcement, the dominoes start to fall." 

Bullshit. What bully pulpit? Does anyone ever go to jail? NO. Because the SEC cannot impose a criminal indictment and they do very little to get the Department of Justice to pursue criminal indictments. Even Michael Milken, the criminal that extorted a couple of billion dollars (along with his buddy, Ivan Boesky) during the Savings and Loan Crisis, spent three years in club fed, only to return to $500 million of money he stole. To this day, Forbes lists him as a philanthropist and never mentions his role in the S&L Crisis.

Already, the potential costs to Goldman are piling up. Britain's Financial Services Authority said Tuesday it will investigate Goldman Sachs International, an overseas subsidiary. And German regulator BaFin will ask the SEC for information as it considers bringing its own charges, Germany's Welt am Sonntag newspaper reported, quoting a spokesman for Chancellor Angela Merkel.

Bullshit. This is all hot air. When you factor in the billions Goldman stole (and it could easily surpass $100 billion over the past 5 years in profits and avoidance of losses) a few billion dollars in penalties serves as NO detriment for continued fraud. It’s business as usual on Wall Street. Moral hazard is the name of the game for these crooks.

Still, there appears to be little concern about Goldman's long-term health. Credit Suisse analysts still say they think Goldman will continue to outperform the financial sector, they wrote in a research note Monday. They wrote that any financial penalties for the firm would likely be "very manageable relative to Goldman's income generation."

Of course. They are criminals and they have bought off all the top government officials, including Obama.

Still, SEC enforcement chief Robert Khuzami said the fear of fallout from SEC charges will deter securities firms from breaking financial laws. And he argued that financial penalties also play an important role in cases like the one against Goldman.

Bullshit. Based upon this statement, Khuzami is either a bold-faced liar or a complete idiot. Even the reporter notes at the beginning of the articles that the penalties are far too small to make an impact. How in the Hell are these penalties going to deter fraud?   

"Financial penalties are critical because they add some sting to a sanction," Khuzami said in an interview with The Associated Press. The ripple effects of the penalties also can hurt by, for example, leading shareholders to question management's conduct.

Bullshit. More of the same bogus claims. Hey Khuzami. Wake up. Impose an adequate penalty instead of relying on delusions of shareholder justice.

When it comes to financial penalties, "bigger isn't necessarily better," Khuzami said. The government doesn't want to impose fines so large that they would hurt shareholders, he said.

Bullshit. That’s like saying when it comes to profits bigger isn’t necessarily better. Why would Khuzami be more concerned about protecting Goldman shareholders than fighting for the shareholders hurt by the bank's fraud? Goldman shareholders deserve to be hurt, as would any shareholders who invested in a company that engaged in fraud. Goldman stole its profits. Shareholders need to pay the price.  What kind of mentality does Khuzami have?  It sounds to me like he has friends and relatives who own shares of Goldman. Khuzami is obviously a front man for Wall Street and Goldman Sachs.

Khuzami, I demand your resignation immediately. You are just another bought-off jackel for Wall Street.

Since joining the agency a year ago, Khuzami has led the SEC's drive to toughen its stance on Wall Street. He pointed to a range of new initiatives. They include grouping lawyers by subject area so they can develop expertise, new policies for working with whistleblowers, clearing the way for faster subpoenas and assessing division performance through standardized metrics.

Bullshit. This is completely false. They have made these claims but I know for a fact its just rhetoric. The SEC certainly has not provided me with these new policies despite several calls I’ve made. They kept dodging the bullet. And they certainly have made no efforts to contact me despite my offer of assistance.

The enforcement push follows a series of embarrassing failures of oversight for the agency before Khuzami and SEC Chairman Mary Schapiro. They included Bernard Madoff's Ponzi scheme and the one allegedly run by jailed Texas financier R. Allen Stanford.

Bullshit. These are small cases when compared to the fraud that has not been caught. Where is mention of the fraud committed by the banking executives?  Why is there no mention by the AP reporter of the securities fraud committed by Dimon, Lewis, Blankfein, Cayne, Fuld, Mozilo, Thain, Killinger and the others?? They should all be in prison. 

That argument was bolstered by the revelation that SEC commissioners approved the charges against Goldman on a 3-2 vote, along party lines, with both Republicans opposing them.

This tells you where republicans stand on Wall Street fraud. It’s okay as far as they’re concerned. Not that democrats are any better, as this is merely a political game. Both parties are the same. The democrats have their own brand of fraud they endorse. This serves as a good indicator that the charges against Goldman are political in nature. Make no mistake. Goldman committed securities fraud, as did hundreds of other financial institutions. But so did Paulson. Yet, he was left out of the charges.

The only reason the SEC is going after Goldman is because the White House wants to recoup some credibility for holding those committing fraud accountable. Sorry but even if the SEC wins, a $1 billion or $2 billion fine is hardly holding criminals accountable for vaporizing the retirement savings and stripping the homes and jobs from millions of Americans.

But former officials from both parties agreed that the SEC would not have brought charges if agency employees weren't confident they could win in court.

Yea, I was told the same thing by the SEC, and I laughed. The only problem is that the SEC has lost many much smaller cases which were much easier to prove. And just because you think you can do something doesn’t mean you can, and that assumes they really want to win, which I am not convinced. The SEC does not know its limitations.

Regardless, even if the SEC wins, it won’t make a bit of difference. The criminals must be sent to prison for a very long time. That includes Paulson. And that includes the executives of all major banks.

Of course that would never occur even if Hell froze over. 

Perhaps the most unfortunate aspect of the story is that the public will buy into the propaganda that the SEC is changing. 

Let me assure you that the SEC will bring about as much change as Obama has. I documented the problems with the SEC in America's Financial Apocalypse while none of the so-called experts even brought up the topic. That should point to my insight in this issue.  Unlike all others, I am by means no "Johnnie come lately."

2

By Mike Stathis

www.avaresearch.com

Copyright © 2009. All Rights Reserved. Mike Stathis.

Mike Stathis is the Managing Principal of Apex Venture Advisors , a business and investment intelligence firm serving the needs of venture firms, corporations and hedge funds on a variety of projects. Mike's work in the private markets includes valuation analysis, deal structuring, and business strategy. In the public markets he has assisted hedge funds with investment strategy, valuation analysis, market forecasting, risk management, and distressed securities analysis. Prior to Apex Advisors, Mike worked at UBS and Bear Stearns, focusing on asset management and merchant banking.

The accuracy of his predictions and insights detailed in the 2006 release of America's Financial Apocalypse and Cashing in on the Real Estate Bubble have positioned him as one of America's most insightful and creative financial minds. These books serve as proof that he remains well ahead of the curve, as he continues to position his clients with a unique competitive advantage. His first book, The Startup Company Bible for Entrepreneurs has become required reading for high-tech entrepreneurs, and is used in several business schools as a required text for completion of the MBA program.

Restrictions Against Reproduction: No part of this publication may be reproduced, stored in a retrieval system, or transmitted in any form or by any means, electronic, mechanical, photocopying, recording, scanning, or otherwise, except as permitted under Section 107 or 108 of the 1976 United States Copyright Act, without the prior written permission of the copyright owner and the Publisher. These articles and commentaries cannot be reposted or used in any publications for which there is any revenue generated directly or indirectly. These articles cannot be used to enhance the viewer appeal of any website, including any ad revenue on the website, other than those sites for which specific written permission has been granted. Any such violations are unlawful and violators will be prosecuted in accordance with these laws.

Requests to the Publisher for permission or further information should be sent to info@apexva.com

Books Published

"America's Financial Apocalypse" (Condensed Version)  http://www.amazon.com/...

"Cashing in on the Real Estate Bubble"  http://www.amazon.com/...

"The Startup Company Bible for Entrepreneurs"   http://www.amazon.com...

Disclaimer: All investment commentaries and recommendations herein have been presented for educational purposes, are generic and not meant to serve as individual investment advice, and should not be taken as such. Readers should consult their registered financial representative to determine the suitability of all investment strategies discussed. Without a consideration of each investor's financial profile. The investment strategies herein do not apply to 401(k), IRA or any other tax-deferred retirement accounts due to the limitations of these investment vehicles.


© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules