I love Neil Garfield

 I love Neil Garfield! Why you ask? He is the only one who has stood up and told the truth. I have read many articles, but I alway look for his daily. Thank you Mr. Garfield for caring about so many of us ..

 

JP Morgan to Pay Another $2Billion for Madoff Conspiracy

by Neil Garfield

When the news of Madoff first made it into the media from which we think we get the information on what is happening in the world, I had two thoughts --- both related to my own experience on Wall Street. The first thing was that at $60 Billion it was impossible for all the big bankers (see Simon Johnson's Thirteen Bankers book --- a smart read) and traders to have been ignorant of what he was doing; the corollary to that is they said nothing, knowing that Madoff was saying he was the smartest trader in the world. None of the broker dealers had ever done a trade with him. So they new it was a PONZI Scheme. And he went to jail and other unpleasant things happened to his family.

The second thing that came to mind was the question of was why none of the big bankers were reporting him. Normally, the self policing code periodically cast a fraudster under the bus to achieve popularity with the public and regulators. Here, they were feeding a monster that was literally robbing widows and orphans over decades. And the reason why they were feeding Madoff's scheme with new suckers investing in Madoff's nonexistent investment trading portfolio --- and the reason it finally leaked out --- was that it was timed perfectly with the mortgage Ponzi scheme. It was the perfect distraction from what the Thirteen Bankers were doing. They threw him under the bus at precisely the time that their own peccadillo's were about to hit the fan (sorry to mix metaphors).

The Madoff scandal was called the largest financial fraud in the history of the world. But sitting right next to it was the largest white elephant ever conceived in the imagination of the public or even fiction writers. Madoff had taken $60 billion whilst the Bankers were making off with a minimum of $13 Trillion. Do the math. The Bankers sucked out of our economy a minimum of 10,000 times what Madoff had taken and they had retained a minimum of 2,000 times what Madoff had taken. If you like Math that equates by division to Madoff's "largest ever financial fraud" being 0.02% of what the bankers had taken also by fraud but using more sophisticated systems and layers of trail and entities so it made it more difficult to prosecute the banks than Madoff which was really very easy.

But the Wall Street bankers had another card up their sleeve. They had created a shadow banking system that was twenty times the total amount of fiat money issued by all countries of the world. They used these "nominal" values to scare the shit out of central bankers and finance ministers and convinced everyone that no matter how evil their motives and actions, they were too big to fail because if the government took them down, the entire financial system would collapse. That was a lie, and the recipients of that message suspected it was a lie but none of them knew enough to be sure. So they chickened out.

The result was that millions upon million of families lost all of their wealth or most of it, all of their credit reputation or most of it, and so far some 15 million people have been displaced, thrown out of good paying productive jobs and are forever taking the cost of this theft on their own backs and that of their generations to come.

On the ground level this translated as a double standard. While there is widespread acceptance of the fraudulent mortgages, notes, debts, bets, insurance and ratings, their is no acceptance of homeowners as the real victims who are paying most of the cost of this theft whether they are in foreclosure or not. In fact even if the citizens are renting or just looking for a job or trying to finance an education that will make them into marketable labor commodities they are paying through lower paying jobs, dependence upon unemployment benefits, Medicaid and other services that are costing all taxpayers trillions of dollars in what would otherwise by GDP.

And if that isn't enough the Federal Reserve is propping up these bankers with false balance sheets and false reserves with purchases of bonds that were never worth a penny because the asset pool never received funding and never owned a single loan. This is a cover up for more quantitative easing which is the printing of more money which in turn demeans the value of our currency and eventually will result in wholesale changes in world currency and cost of goods and services.

Some lawyer today at court said I know who you are--- you're the guy who hates banks. No. I have sat on the boards of banks and represented banks In Foreclosures both residential and commercial. I have filed hundreds of foreclosure actions for condominium, cooperative and homeowner associations. There are over 7,000 banks and credit unions in this country alone. I only dislike about 15 of them which means I like about 6,985 of these institutions who perform valuable services for a vibrant economy. I don't even dislike securitization. I just don't like when securitization documents are used to cover up a financial fraud. Is that wrong?