Best of the Week
Most Popular
1. US Housing Market Real Estate Crash The Next Shoe To Drop – Part II - Chris_Vermeulen
2.The Coronavirus Greatest Economic Depression in History? - Nadeem_Walayat
3.US Real Estate Housing Market Crash Is The Next Shoe To Drop - Chris_Vermeulen
4.Coronavirus Stock Market Trend Implications and AI Mega-trend Stocks Buying Levels - Nadeem_Walayat
5. Are Coronavirus Death Statistics Exaggerated? Worse than Seasonal Flu or Not?- Nadeem_Walayat
6.Coronavirus Stock Market Trend Implications, Global Recession and AI Stocks Buying Levels - Nadeem_Walayat
7.US Fourth Turning Accelerating Towards Debt Climax - James_Quinn
8.Dow Stock Market Trend Analysis and Forecast - Nadeem_Walayat
9.Britain's FAKE Coronavirus Death Statistics Exposed - Nadeem_Walayat
10.Commodity Markets Crash Catastrophe Charts - Rambus_Chartology
Last 7 days
The Beatings Will Continue Until the Economy Improves - 6th Jul 20
The Corona Economic Depression Is Here - 6th Jul 20
Stock Market Short-term Peaking - 6th Jul 20
Gold’s Major Reversal to Create the “Handle” - 5th July 20
Gold Market Manipulation And The Federal Reserve - 5th July 20
Overclockers UK Custom Build PC Review - 1. Ordering / Stock Issues - 5th July 20
How to Bond With Your Budgie / Parakeet With Morning Song and Dance - 5th July 20
Silver Price Trend Forecast Summer 2020 - 3rd Jul 20
Silver Market Is at a Critical Juncture - 3rd Jul 20
Gold Stocks Breakout Not Confirmed Yet - 3rd Jul 20
Coronavirus Strikes Back. But Force Is Strong With Gold - 3rd Jul 20
Stock Market Russell 2000 Gaps Present Real Targets - 3rd Jul 20
Johnson & Johnson (JNJ) Big Pharma Stock for Machine Learning Life Extension Investing - 2nd Jul 20
All Eyes on Markets to Get a Refreshed Outlook - 2nd Jul 20
The Darkening Clouds on the Stock Market S&P 500 Horizon - 2nd Jul 20
US Fourth Turning Reaches Boiling Point as America Bends its Knee - 2nd Jul 20
After 2nd Quarter Economic Carnage, the Quest for Philippine Recovery - 2nd Jul 20
Gold Completes Another Washout Rotation – Here We Go - 2nd Jul 20
Roosevelt 2.0 and ‘here, hold my beer' - 2nd Jul 20
U.S. Dollar: When Almost Everyone Is Bearish... - 1st Jul 20
Politicians Prepare New Money Drops as US Dollar Weakens - 1st Jul 20
Gold Stocks Still Undervalued - 1st Jul 20
High Premiums in Physical Gold Market: Scam or Supply Crisis? - 1st Jul 20
US Stock Markets Enter Parabolic Price Move - 1st Jul 20
In The Year 2025 If Fiat Currency Can Survive - 30th Jun 20
Gold Likes the IMF Predicting a Deeper Recession - 30th Jun 20
Silver Is Still Cheap For Now - 30th Jun 20
More Stock Market Selling Ahead - 30th Jun 20
Trending Ecommerce Sites in 2020 - 30th Jun 20
Stock Market S&P 500 Approaching the Precipice - 29th Jun 20
APPLE Tech Stock for Investing to Profit from the Machine Learning Mega trend - 29th Jun 20
Student / Gamer Custom System Build June 2020 Proving Impossible - Overclockers UK - 29th Jun 20
US Dollar with Ney and Gann Angles - 29th Jun 20
Europe's Banking Sector: When (and Why) the Rout Really Began - 29th Jun 20
Will People Accept Rampant Inflation? Hell, No! - 29th Jun 20
Gold & Silver Begin The Move To New All-Time Highs - 29th Jun 20
US Stock Market Enters Parabolic Price Move – Be Prepared - 29th Jun 20
Meet BlackRock, the New Great Vampire Squid - 28th Jun 20
Stock Market S&P 500 Approaching a Defining Moment - 28th Jun 20
U.S. Long Bond: Let's Review the "Upward Point of Exhaustion" - 27th Jun 20
Gold, Copper and Silver are Must-own Metals - 27th Jun 20
Why People Have Always Held Gold - 27th Jun 20
Crude Oil Price Meets Key Resistance - 27th Jun 20
INTEL x86 Chip Giant Stock Targets Artificial Intelligence and Quantum Computing for 2020's Growth - 25th Jun 20
Gold’s Long-term Turning Point is Here - 25th Jun 20
Hainan’s ASEAN Future and Dark Clouds Over Hong Kong - 25th Jun 20
Silver Price Trend Analysis - 24th Jun 20
A Stealth Stocks Double Dip or Bear Market Has Started - 24th Jun 20
Trillion-dollar US infrastructure plan will draw in plenty of metal - 24th Jun 20
WARNING: The U.S. Banking System ISN’T as Strong as Advertised - 24th Jun 20
All That Glitters When the World Jitters is Probably Gold - 24th Jun 20
Making Sense of Crude Oil Price Narrow Trading Range - 23rd Jun 20
Elon Musk Mocks Nikola Motors as “Dumb.” Is He Right? - 23rd Jun 20
MICROSOFT Transforming from PC Software to Cloud Services AI, Deep Learning Giant - 23rd Jun 20
Stock Market Decline Resumes - 22nd Jun 20
Excellent Silver Seasonal Buying Opportunity Lies Directly Ahead - 22nd Jun 20
Where is the US Dollar trend headed ? - 22nd Jun 20
Most Shoppers have Stopped Following Supermarket Arrows, is Coughing the New Racism? - 22nd Jun 20

Market Oracle FREE Newsletter

AI Stocks 2020-2035 15 Year Trend Forecast

Congress Dithers On Financial Reform While Courts Give “Get Out Of Jail Cards” To White Collar Crooks

Politics / Market Regulation Jun 25, 2010 - 01:32 AM GMT

By: Danny_Schechter

Politics

Best Financial Markets Analysis ArticleNo Yellow Cards Here: Wall Street Banksters Lead In The World Cup of Phony Reform

charade | sh əˈrād|
noun
an absurd pretense intended to create a pleasant or respectable appearance : talk of unity was nothing more than a charade.


The plan was to get the financial reform bill “done” by this weekend so that President Obama could pull it out of the his back pocket at the G20 meeting in Canada to demonstrate American “leadership” on an issue the whole world is legitimately worried about: the real prospect of an even more serious global economic collapse.

The Congress has been working on this deal for months. The Senate passed its version after the House adopted a different measure. It was then up to the Conference process to “reconcile” the two bills, and come up with a law all could live with before taking the summer off to prepare for killer elections in the fall.

No one reminded these alleged public servants of that axiom about the best laid plans of men and mice as in “the best laid schemes o' mice an' men. Gang aft agley, ... aft agley" (often paraphrased in English as "The best-laid plans of mice and men / Go oft awry").

Its hard to know how “gang aft agley” they really went since all of the legislators are masters of compromise and beholden to financial interests that have gone through the provisions with a fine tooth comb and a surgical pair of scissors.

Already the proposed independent Consumer Protection Agency has been buried in the Federal Reserve Bank. The Too big to fail provisions are history, And the wrangle over tough rules on derivatives have been targeted by liberals from New York who fear that the trading desks will move overseas. Forget about principles here. Exemptions are being carved out, as I write, for mutual funds and manufactures. Three “moderate” Republicans including Scott Brown of Massachusetts have demanded reforms in the reform that will make it a reform in name only.

Behind the scenes, the industry with 25 lobbyists for every member of Congress is intensifying the pressure at the federal and local level, putting the squeeze on. Every member has a little something they now need to vote yes. Explains Senate negotiator Chris Dodd. “ I dredge votes on the floor of the US Senate. I come back and I feel like a bulletin board...I’ve got notes stuck in every pocket.”

These lobbyists have poured hundreds of millions into the coffers of these politicians. As Senator Dick Durbin admitted last April, "[T] he banks--hard to believe in a time when we're facing a banking crisis that many of the banks created--are still the most powerful lobby on Capitol Hill. And they frankly own the place."

According to MIT’s Simon Johnson who writes “The Baseline Scenario,” it’s the White House that’s doing Wall Street’s bidding while claiming the opposite. He writes,  “The president signed off on the most generous and least The administration has scrambled to create some political cover in terms of "reform"--but the lack of substance here is already clear to people who follow it closely, and public perceptions will shift quickly.”

And it’s not just the Congress that is backpedaling as I write. The Courts and the prosecutors are doing their share to issue ‘get out of jail cards” for suspected and convicted White Collar criminals. Dow Jones reports, “The U.S. Supreme Court found fault Thursday with the federal government's high-profile convictions of Enron's Jeffrey Skilling and former media mogul Conrad Black, rejecting the government's use of a key white-collar crime law on which part of the prosecutions were based.

The justices sent the cases back to two different lower courts to determine whether portions of Skilling and Black's convictions should be thrown out.”

A Congressional provision has insured that convicted white collar ciminals cannot be sued by the people they ripped off. Joseph Collins, a corporate lawyer who worked for Refko will not have to pay back investors he helped defraud.  Appeals Court Judge Gerald Lynch wrote, “It is perhaps dismaying that participants in a fraudulent scheme who may even have committed criminal acts are not answerable in damages to the victims of the fraud,”

“It is perhaps dismaying.” Huh. ????

Even the people who enabled Bernie Madoff seem to be getting off writes the NY Times White Collar Crime blogger, Peter J. Henning: “Senior members of Mr. Madoff’s securities operation, including his brother and two sons, have not been charged with any crime to this point, and one wonders whether anyone will be charged with being an accomplice to the fraud. Mr. Madoff received his 150-year sentence nearly a year ago and little has happened on the criminal front since then.”

The operative phrase: “One wonders…..”

So, the criminals go free while the Congress and the courts compound the crimes. If this is not a vivid demonstration of corruption at the highest levels, what is?

Meanwhile, in England, under a conservative government financial crime is being treated differently. Yesterday, according to news reports, “the UK government announced a complete overhaul of the financial services industry in the UK, increased focus on white-collar crime, and a review, with possible reform, of the banking industry.”

And while all this is going on, the economy continues to fall into the crapper as Republicans sink a measure to extend unemployment benefits for working people who are already being designated “the new poor.”

Writes, Mike Whitney, “Consumer spending is flat, home prices are set to fall, unemployment will likely edge higher, private sector credit is still contracting, capacity utilization is far below pre-crisis levels, the CPI is slipping, and yields on US Treasuries are priced for deflation.  The government must pick up the slack or there will be a general fall in prices that will trigger more layoffs, larger deficits, and social unrest.”

Don’t worry; each party will blame the other. Already republican candidates are telling the unemployed “to get a job,” no matter how low it pays.

When some weakened bill is passed as, no doubt, one will, prepare for the TV spin by the punditocracy shilling for the status quo, and rationalizing it as the best law that could emerge under the circumstances in such a dysfunctional institution.

And then,  watch as the Obama Administration hails it as the second coming.

News Dissector Danny Schechters film and book Disinformation. For more information, Http://www.plunderhecrimeofourtime.com.

    News Dissector Danny Schechter has made a film and written a book on the “Crime Of Our Time.” (News Dissector.com/plunder.) Comments 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


© 2005-2019 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