Best of the Week
Most Popular
1.Stock Market in DANGER of Strangling the Bears to Death - Nadeem_Walayat
2. Germany Pivoting East, Exit US Dollar, Enter Gold Standard - Jim_Willie_CB
3.Flight MH17 – Kiev Flash Mob's Last False Flag? - Andrew_McKillop
4.Stock Market Crash Nightmare! - Nadeem_Walayat
5.Gold - The Million DOLLAR Question... - Rambus_Chartology
6.Gold And Silver – BRICS And Germany Will Pave The Way - Michael_Noonan
7.The Jewish Selfish Gene, People Chosen by God, Everyone Else is Goyim to Kill - Nadeem_Walayat
8.The Israeli Promised Land Dream - The Criminal Roadmap Towards “Greater Israel”? - Felicity Arbuthnot
9.Which Way is Inflation Blowing? Watch Commodities - Gary_Dorsch
10.U.S. Economy Quarterly Review and Implications for 2014-2015 - Lacy Hunt
Last 5 days
Our Totalitarian Future - Totalitarianism NOW! - 30th July 14
Stocks Bear Market Formation Revealed - 30th July 14
We Just Found “The Future” - 30th July 14
What the “Steak Bandit” Says About Asset Values - 30th July 14
Designer War By Default - Seven Types of Elite Madness - 30th July 14
Death of the U.S. Dollar? Gold an Inflation Hedge? Really? - 29th July 14
We’re Ready to Profit in the Coming Gold Price Correction—Are You? - 29th July 14
Their Economy Will Collapse, Including Ours - 29th July 14
Silver Prices – Megaphone Patterns - 29th July 14
Real U.S. Interest Rates - Fed Exit a Blue Pill? - 29th July 14
Why Israel Should NOT Exist, Just Like Any Other Rogue State - 29th July 14
Gold Still Looking Good - 29th July 14
Silver Price Set To Star - 29th July 14
Our Population Growth Totalitarian Future - 29th July 14
World War 1 Cause and Consequences - The Planned Destruction of Christendom - 29th July 14
Will Crashing Commodities Crash the Stock Market? - 29th July 14
Ukraine MH17 - Washington Thinks Americans Are Fools - 29th July 14
Stock Market Bubble Warning - 29th July 14
Gold Price and U.S. Dollar’s July Rally - 28th July 14
Second Quarter Corporate Earnings: Marching Toward a Strong Economic Recovery - 28th July 14
Time to Put a New Economic Tool in the Box - 28th July 14
Mossad in Gaza, Ukraine and the Cult Of The All-Powerful Elite - 28th July 14
Elliott Wave Gold Price Projection Since 1970 - 28th July 14
Investors Remain Uncertain As Stock Fluctuate Near Long-Term Highs - Will The Uptrend Extend? - 28th July 14
The Mass Psychology Of Decline - 28th July 14
Will the US Destroy the World? - Don’t Expect to Live Much Longer - 28th July 14
GDM and GDXJ Gold Stocks In-depth Look - 28th July 14
Stock Market One FINAL High? - 28th July 14
What It Means - Paradigm Collapse And Culture Crisis - 27th July 14
Wall Street Shadow Banking: You Can’t Taper a Ponzi Scheme: “Time to Reboot” - 27th July 14
6 Tips for Picking Winning Gold Mining Stocks - 27th July 14
Israel's War on Children, Exterminating the Palestinians Future - 27th July 14
Guilt By Insinuation - How American Propaganda Works - 26th July 14
Surprise Nuclear Attack On Russia To Liberate Ukraine - 26th July 14
Use "Magic" Of Gold/Silver Ratio To Greatly Increase Your Physical Holdings - 26th July 14
Derivatives Market Species Origins - Abuse, Props and Risks - 26th July 14
Stock Market Manipulation and Technical Analysis - 26th July 14
China’s Stock Market Finally Looks Like A Buy - 26th July 14
Ed Milliband Fears Israel Jewish Fundamentalist Gaza War Massacres Backlash - 26th July 14
The Big Energy = Power Battle Is Coming - 25th July 14
USrael - Zionists in Control of America's Goyim Brainwashed Second Coming Slaves - 25th July 14
More Weakness Ahead for Gold Miners - 25th July 14
Gold Price Strong Season Starts - 25th July 14
Geopolitics and Markets Red Flags Raised by the Fed and the BIS on Risk-taking - 25th July 14
Gold Lockdown Until Options Expiry - New Singapore Gold Contract Threatens Price Manipulation - 25th July 14
The Bond Markets, Black Swans, and the Tiny Spirit of Santo - 25th July 14
No Road Map For Avoiding The Future - 25th July 14
Israeli War Machine Concentrating Women and Children into UN Schools Before Killing Them - C4News - 25th July 14
Israeli Government Paying Jewish Fundamentalist Students to Post Facebook Gaza War Propaganda - 25th July 14
Why the Stock Market Is Heading For A Fall - This Time Is Not Different - 25th July 14
An Economic “Nuclear Strike” on Moscow, A “War of Degrees” - 25th July 14
BBC, Western Media Working for Israeli Agenda of Perpetual War to Steal Arab Land - 25th July 14
Ukraine: What To Do When Economic Growth Is Gone - 24th July 14
Stock Market Clear and Present Danger Zone - 24th July 14
The Five Elements to Creating a Something-for-Nothing Society - 24th July 14
Instability is the New Normal? - 24th July 14
Israel's Suicide Bombers Over Gaza - 24th July 14
EUR-AUD Heads Into The Danger Zone - 24th July 14
Tesco Supermarket Death Spiral Accelerates as Customers HATE the Mega Brand - 24th July 14
Ukraine MH17 Crisis - Best Remember Who Your Friends Are - 24th July 14
Three Reasons Why Gold Price and Gold Stocks Will Rise - 24th July 14
HUI Gold Bugs Fighting To Break Downtrend - 23rd July 14
What Putin Knows About Flight MH17 - 23rd July 14
Why Microsoft Will Continue to Rebound, Huge Upside Potential - 23rd July 14
Will Putin Survive? - 23rd July 14

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

The Biggest lie in Stock Market History Revealed

Global Economic War, Will The Wall Street Banksters Ever Be Held Accountable?

Politics / Credit Crisis Bailouts May 13, 2010 - 01:29 PM GMT

By: Danny_Schechter

Politics

Best Financial Markets Analysis ArticleWe are all still stuck in the “big Muddy.” No, not the wars of old or even the oil disaster.  The mud I am referring to is more like quicksand and it sucks anyone who wants to look at what happened in the financial crisis deeper and deeper into it.

Soon, you are buried in shifting sea of so-called “exotic financial instruments,” and tranches, derivatives, credit default swaps, naked short-selling, etc and so forth, ad fin item.  It’s murkier in there than in the oil-infested waters of the Gulf of Mexico.


Stop, my head hurts.

A far simpler explanation, pervasive fraud and financial crime, has been ignored by most of our economic geniuses. As I made my film Plunder The Crime of Our Time offering a “crime narrative,” I ran up against the denial that greeted my 2006 film In Debt We Trust warning of a meltdown. Then I was called, a “doom and gloomer.” Now I have just been ignored or considered simplistic.

Why is that? There are cultural and ideological reasons. The world of finance is dominated by the elite of the elite, up-right citizens all, including many philanthropists and patrons of the arts. How could such important “big men” ever be accused of slimy crimes?

James K. Galbraith, an economist and the son of John Kenneth Galbraith, the late and great economist who argued that “corporate larceny” was behind the crash of  ’29, (I honor hin in the DVD of my film) believes that the economics profession, the “experts” who set the terms of the debate are partly responsible. He shared his views in recent Congressional testimony.

“I write to you from a disgraced profession. Economic theory, as widely taught since the 1980s, failed miserably to understand the forces behind the financial crisis. Concepts including "rational expectations," "market discipline," and the "efficient markets hypothesis" led economists to argue that speculation would stabilize prices, that sellers would act to protect their reputations, that caveat emptor could be relied on, and that widespread fraud therefore could not occur. Not all economists believed this – but most did.

Thus the study of financial fraud received little attention. Practically no research institutes exist; collaboration between economists and criminologists is rare; in the leading departments there are few specialists and very few students. Economists have soft- pedaled the role of fraud in every crisis they examined, including the Savings & Loan debacle, the Russian transition, the Asian meltdown and the dot.com bubble. They continue to do so now. At a conference sponsored by the Levy Economics Institute in New York on April 17, the closest a former Under Secretary of the Treasury, Peter Fisher, got to this question was to use the word "naughtiness." This was on the day that the SEC charged Goldman Sachs with fraud.”

What a world: people who steal food are deemed criminals and sent away with long sentences in a prison system with the highest rate of incarceration in the world. Banksters are considered “naughty.”

This may be changing, ever so slowly, as a new era of investigations begins. The President has created a new federal anti-financial fraud task force.  Goldman Sachs is being probed. So is Morgan Stanley. The Daily Beast reports on NY Attorney General Andrew Cuomo’s latest highly political legal jihad:

“New York Attorney General Andrew Cuomo is launching an investigation into eight banks to see whether they misled rating agencies, The New York Times reports Thursday. The agencies have been under attack since the financial crisis for over-rating the quality of mortgage investments offered by the banks. Cuomo's new inquiry suggests that he believes that error may be in part due to banks' chicanery. The A.G. is targeting Goldman Sachs, Morgan Stanley, UBS, Citigroup, Credit Suisse, Deutsche Bank, Crédit Agricole, and Merrill Lynch. It is a high-profile investigation for a politician who is said to have his heart set on New York's governor's seat.”

The problem here is that the criminal enterprise we are up against is not just in finance where securities laws only protect investors, but in real estate and insurance. The crimes there were more pervasive and hurt more people. You need a sense of how this whole system of corruption worked. This chart offers one sense of it:
http://marcochacon.livejournal.com/732432.html

This is why prosecutors need to use the RICO law aimed at conspiracies, not just lone wrong doers. Sadly, many in the media, including progressives, prefer the top-ten “list” approach used by magazines focusing on individuals not institutions. This personalizes the problem focusing anger at bad people, not a system gone amuck.  Example: an excellent but limited list of bad guys posted by AlterNet: on “America's Ten Most Corrupt Capitalists”
http://www.alternet.org/news/146819

Overseas, in Greece and England, and other parts of Europe, there’s been an indictment of American corporate predators, especially Goldman Sachs. They are being denounced as “financial terrorists” and discussed in terms of their links to various elite business formations like the Bilderberg Group. While unions say workers are being targeted in an economic war, the left also sees a counterrevolution underway against democracy with power moving firmly into the hands of bond traders and markets demanding austerity, not people’s Parliaments and elected politicians. European leaders say they are at war, too, against “speculators”

Surprisingly, there are voices on the right also speaking out. Cliff Kincaid of Accuracy in Media, an ultra conservative organization now fears that “Hedge Funds Spark World Revolution,” writing:

“The Marxists used to be the experts in exploiting human suffering for the purposes of sparking revolution. But the hedge funds are doing better than the Marxists.

Consider that the business publication Barron's has an article headlined on its cover, "A savvy hedge-fund manager reveals how to make money on Old World's woes." A better headline would have been "How to exploit human suffering." At a time when people are dying in Greece because of riots in response to economic problems, what kind of publication would openly advertise how to make money at the expense of others and profit from their misery?

But this is how the hedge fund short sellers and their apologists work.”

Even as the banks push back against financial reform, watering down legislation against derivatives, too big to fail banks and even a full audit of the Federal Reserve Bank, the crisis lurches out of control. The NY Times reports that many jobs are not coming back, and debt is on the rise to historic levels. The next crash will be worst.

The Banksters need to be stopped, but only the people can do that—our media and politicians, right center and progressive, are not up to the task. What we need is more than exposes but a major effort to organize like foroureconomy.org. This is the only way to fight back against a one-sided war.

News Dissector Danny Schechter made the film/dvd Plunder The Crime of Our Time and wrote the companion book, The Crime Of Our Time, on the crisis as a crime story. (Http://www.plunderhecrimeofourtime.com) Feedback to dissector@mediachannel.org

    © 2010 Copyright Danny Schechter - All Rights Reserved
    Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2014 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

Free Report - Financial Markets 2014