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?
No comments:
Post a Comment