by Scott Creighton
When they declared that the certain banks who had colluded with each other, the housing industry, the rating agencies, and the government to create the newest depression we are facing, to be “Too Big Too Fail” what they did was in essence also declare that they were too big too investigate and certainly too big too prosecute.
These banks convinced Vishy politicians on the left and the right to support comprehensive Wall Street deregulation, the repeal of Glass-Steagall, and the unholstering of the derivatives market (derivatives were illegal in this country for 60 years or so after the last depression). Then they pumped and dumped the CDS and other toxic assets they created with their “liar loans” in sub-prime markets and profited off bets they placed on the failure of their own clients. Then they had the gall to threaten martial law if the people didn’t fork over 780 billion in bailouts (which they never used to ease lending restrictions) and got an additional 12 trillion or so in 0% interest loans (which they never used to ease lending restrictions).
And they did the same trick across Europe, wiping out their economies as well.
You don’t have to be a conspiracy theorist at this point to read the writing on the wall. After all, the TARP bailout was the most universally opposed piece of legislation that I can remember in my lifetime ( a close second being the FISA reform which gave retroactive immunity to telecom companies for helping Uncle Sam spy on all of us illegally). Everyone saw this coming and here it is.
No prosecution for Goldman Sachs and no prosecution for Jon Corzine for misplacing 1.2 billion dollars in his customer’s money. No prosecution for war crimes, no prosecution for torture, no prosecution for assassinations and the wanton murder of US citizens. No prosecution for waging acts of terrorism against innocent people across the globe on behalf of global corporations and the financial industry. No prosecution for stealing elections and murdering foreign leaders who oppose our corporate interests.
I don’t know what the word is too describe this. Maybe it’s “barbaric”.
1a : of, relating to, or characteristic of barbarians b : possessing or characteristic of a cultural level more complex than primitive savagery but less sophisticated than advanced civilization
2a : marked by a lack of restraint : wild b : having a bizarre, primitive, or unsophisticated quality
“A criminal investigation into the collapse of the brokerage firm MF Global and the disappearance of about $1 billion in customer money is now heading into its final stage without charges expected against any top executives.
After 10 months of stitching together evidence on the firm’s demise, criminal investigators are concluding that chaos and porous risk controls at the firm, rather than fraud, allowed the money to disappear, according to people involved in the case.” New York Times
In fact, Corzine looks like he is going to start a new hedge fund. I wonder where he will get the start-up money? I bet he has about 1.2 billion bucks laying around somewhere he can create his next ponzi scheme with.
You kinda half expect him to come out with one of those “I’m Sorry” commercials that BP did after they wasted the Gulf of Mexico and the entire Gulf Coast.
Not surprizingly, the Attorney General of President Peace Prize has refused to bring charges against Goldman Sachs, the masters of the universe. Matt Taibbi went off on this one just yesterday for Rolling Stone…
“I’ve been on deadline in the past week or so, so I haven’t had a chance to weigh in on Eric Holder’s predictable decision to not pursue criminal charges against Goldman, Sachs for any of the activities in the report prepared by Senators Carl Levin and Tom Coburn two years ago.
Last year I spent a lot of time and energy jabbering and gesticulating in public about what seemed to me the most obviously prosecutable offenses detailed in the report – the seemingly blatant perjury before congress of Lloyd Blankfein and other Goldman executives, and the almost comically long list of frauds committed by the company in its desperate effort to unload its crappy “cats and dogs” mortgage-backed inventory.
In the notorious Hudson transaction, for instance, Goldman claimed, in writing, that it was fully “aligned” with the interests of its client, Morgan Stanley, because it owned a $6 million slice of the deal. What Goldman left out is that it had a $2 billion short position against the same deal.
If that isn’t fraud, Mr. Holder, just what exactly is fraud?” Matt Taibbi
Each time they get away with these horrible crimes, crimes that have serious effects on countless lives, we can pretty much guarantee that the next thing they dream up will cost us more and damage the economy more until they actually and literally take every single dime out of this nation. They’re a shakedown racket like none that has existed before in this country and that includes the Wall Street traitors who brought about the crash of 29 and the first Great Depression.
There’s a case that just finished in the 7th Circuit Court I believe in which a financial institution was taking their clients money, without their knowledge, and using it as collateral for their own high risk loans. The court ruled that it was ok what they were doing. I can’t remember the exact case (someone help me out) but it appears the court set a precedent allowing financial institutions to simply take their customer’s money in certain circumstances.
This is horrifying considering that the Feds just warned the banking industry that something is about to implode and they better find another way to stay afloat because the Fed won’t be there to bail them out (really what that means is they will bailout out the big 6 banks in this country but not the rest allowing them to buy up all the rest for pennies on the dollar, just like they did with the last bailout bundle)
In California they are using eminent domain laws to seize houses that are simply “at risk” in their mortgages and then handing them over to the banks. Many see this as the most obvious effort to date to return us to a feudal system of government.
The key to allowing all of this to happen is the absence of any legitimate rule of law in America. Only the working people and the poor need to worry about the law. It doesn’t exist for anyone else. The law is simply a tool to enforce the oppression of the elites upon the people and not to level the playing field for society. It’s meaningless.
Don’t take my word for it. Here’s Noam Chomsky and Glenn Greenwald talking about just this very issue last month…
By “looking forward not backward”and creating “too big too fail” institutions, this country has slipped into something well past feudalism and I have to admit that I don’t have the education to know what that word is.
Maybe the word is “barbaric”. Maybe it’s something worse.
And they’re just getting started.
Filed under: Scott Creighton