Archive for October, 2010

The Fraud Club: Goldman Sachs, the SEC, the CFTC, and the Washington skid greasers

Lloyd Blankfein is doing, as he’s claimed, “God’s work.” Surely this is true. His ability to ignore the law and get away with fraud has been truly superhuman, God-like even. He’s become the very Lord of Fraud. He must be omnipotent, otherwise how could he get away with all this crap!

For example, how many laws did Goldman Sachs and the other Wall Street money-changers break to 1) encourage the writing of bogus mortgages, 2) bundle and sell them as mortgage-backed securities knowing full well they were dog doo-doo, 3) buy up credit default insurance to short the very same toxic mortgages he was selling to his “customers”, and then 4) foreclose on said mortgages with the same fraudulent paperwork he started with in the first place?  Wow Lloyd…that’s a killer business model.

Fiduciary duty my left eyeball!

Gladly exchanging short-term profits for the demolition of the American real estate market, his lordship carries on the proud Goldman Sachs’ tradition of bilking, bubble blowing, and bail-outs in search of fat year-end bonuses.

Of course, when all else fails, he’s got his Demigods of Mercy at the Treasury (Paulson, now Geithner) and the Fed (Ben “easy money” Bernanke)  to bail out his Godliness when  it all flies apart.

What about the SEC and the CFTC? Aren’t they keeping an eye on things? Short answer, no. They’re ten years behind the curve. These “watch-dogs” exemplify the concept of regulatory capture i.e. an agency that supposedly acts in the public interest, instead acts in favor of the financiers that it is charged with regulating.  Current attitude at the SEC these days: “Well, yes, hello there Mr. Dimon and Mr. Blankfein. What can we do to look the other way for you today?”

Yes, these so-called “regulatory agencies” have gone over to the power of the dark side. To wit, when was the last time you saw a big “bankster” trotted out the front door of a big New York bank in hand-cuffs?  No, no…ain’t gonna happen.  This is a club after all. They make the rules.  The unwashed masses need not apply.

You’ll never see tough guys from the FBI or the Justice Department elbowing “the suits” out to the paddy wagon. Goldman Sachs and the other investment banks instead 1) pay fines in lieu of hard-nosed prosecutions, or 2)  get plea bargains tagged with such niceties as, “no admission of wrongdoing.”

Paying fines and wiggling through sham court cases are simply “the cost of doing business” for the big boys.

My advice, don’t bite the Big Apple, it’s full o’ maggots.

Of course, down 1-95 a pace, the politicians spin loopholes that the club can later exploit.  DC’s been bought off, you see. The Constitution is gradually being overwritten by the Unified Commercial Code, effectively supplanting a private citizen’s chance of getting justice in the courts, least of all in New York City.  “The Law” is now a cavern of Byzantine legal-ese, all tilted in favor of the big time lawyers, banks, and multi-national corporations.

He that controls the rules wins the game, after all.

Lord Lloyd likes the rules. He’s a member of the Club.  They make the rules you have to live by, he and the other big wigs and kleptocrats  get to do whatever the hell they want.

The Club gets to screw with the economy for short-term profits.  The Club gets re-write the laws in it’s favor. The Club gets to make tons o’ money when it wins and raids the Treasury when it loses.

Mr. and Mrs. Middle Class America, you’ve been had.

Government of the people, by the people, and for the people is over.

Now it’s government of the club, by the club, and for the club.

Kneel, you fool, and kiss the Lord’s ring!

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