Thursday, July 1, 2010

"A Gigantic Ponzi Scheme, Lies and Fraud"

Day one of the Financial Crisis Inquiry Commission's two-day hearing on AIG derivatives contracts featured testimony from Joseph Cassano, the former head of AIG's financial products unit. Goldman Sachs president Gary Cohn was also on the Hill.
Meanwhile, the Democrats are still trying to salvage the regulatory reform bill, with critical support from Senator Scott Brown (R-Mass.) reportedly still uncertain.
According to Howard Davidowitz of Davidowitz & Associates, what connects the hearings and the Reg reform debate is the lack of focus on the real underlying cause of the financial crisis: Fraud.
"It was a massive fraud... a gigantic Ponzi Scheme, a lie and a fraud," Davidowitz says of Wall Street circa 2007. "The whole thing was a fraud and it gets back to the accountants valuing the assets incorrectly."
Because accountants and auditors allowed Wall Street firms to carry assets at "completely fraudulent" valuations, he says the industry looked hugely profitable and was able to use borrowed funds to make leveraged bets on all sorts of esoteric instruments. "Their bonuses were based on profits they never made and the leverage they never could have gotten if the numbers were right - no one would've given them the money in their right mind," Davidowitz says.

9 comments:

  1. Yes ... people are starting to see the truth

    it is all a fraud

    printed out of thin air

    the air is getting thinner

    so thin they will fall

    they will likely start turning on each other

    their Matrix is faltering, wavering, and can be unplugged ... as you unplug

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  2. Our current business culture rewards those that lie, cheat, and deceive. Until we start holding all the parties that are involved in the game of fraud accountable with jail time and financial penalties we are not going to restore confidence and recover. Look at the gigantic pile of financial crap that was created by Wall Street and the Banksters that has now destroyed the world economy. Millions of hard working families are now suffering and their future looks bleak. The slick white collar criminals are now in charge and need to be ousted.

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  3. This was nothing more than Wallstreet taking advantage of very poor government intrusion into the houseing market.

    These risky loans were all government promoted, the bets were the result of it. Blaming Wallstreet is a strawman to the real perpetrator.

    You cannot have a stable market with government intrusion.

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  4. I am just a high school graduate and I can see that wages are stagnant or being cut, homes are going unsold, average people I talk with daily know that no job is secure. Then you got the administration trying to paint a happy face on everything, that makes me feel that we are all stupid. We are entering a financial depression and all the useless bailouts just made it all the worse.

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  5. i watched the video
    ive been saying this for a while
    in obamas speech yesterday
    he promised everything

    blammed repukes

    but everyone staned and clapped at the end

    hes been thier since 2009
    where are the jobs?
    why would you stand and clap
    the gulf is a mess a lousey 20 billion

    its like 20 trillion in damages daaaa
    and he said thier would be green jobs
    if cap and trade passes the average house tack on 100 grand just to sell to bring them up to code

    it gets better how about a inspection by the goverment every 2 years like your car

    the gestapo at your door to test your furnace

    americans are stupid thier clapping for thier
    own deaths of finacial ruin

    i told a buisness owner yesterday
    sideing and windows buisness
    she said how will people pay for this
    i dont know i just know what they purpose
    this guy is a nightmare of biblical purportions
    and i voted for obama

    this is no joke people are clueless
    alll obama does is bullsheet
    name one thing he said in his campain that hes done!!!!

    this is going from nightmare to holucost

    but people think by denieing it it cant happen
    it is.and will

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  6. What divides public support, or lack thereof, is the idea that a democratic or republican ideology will bring us out of this mess. Rest assured that Democrats and Republicans alike care only for the corporate financing monies, and not for popular support.

    If you want descent representation then I would suggest finding a representative that receives NO money from big business.

    Corporate america has had enough support, via our tax dollars, as a result of bailouts that congress voted for and 99% of americans were against, yet they ultimately come from our pockets.

    As an american I expect and deserve what I pay for. That means if I am going to pay to bailout big banks, the administration damned well better make sure that those banks are able to serve me well in the present and future.

    Sadly, NOT A SINGLE bank has offered me a descent interest rate on 5K-in any time range.
    They did offer me a $10 bonus if I signed up for a debit card, an offer which I flatly refused.

    Bottom line, don't trust your bank, they are all playing the time game with your money, and if you fail to second guess them, they will end up with your money. The FDIC can only back up so many insured banks before it too is required to call upon the Fed to print more money, at that point if you should have to wait to withdraw funds it will be far to late to even consider competitively entering any other market.

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  7. Shut the hell up about the Government, will you, please. That is such ridiculous Republican claptrap at this point. The Government is the Corporations....they are not separate...they are one. It's called Fascism, you idiots, and the recent Supreme Court Ruling this past January allowing Corporations to "legally" own Government was the Fait Accompli. What was previously being done illegally and surreptitiously, is now legal, and it's the final nail in the coffin.

    There is no Left or Right. It's a construct to keep you brain-dead sheep separated. It's a Dark Arts strategy to mitigate any possibility of solidarity on the part of the Small People.

    The Plutocratic Oligarchy is now thumbing its nose at you idiots because they know you can't even see it. They're screwing with you as you walk in lock-step to their social programming. They're laughing at you. They're anally raping you in broad daylight, legally, and you're blaming the desperate unemployed and immigrants....just as they programmed you to do.

    Wake up, you idiots. You're being taken for a ride and the destination is a toxic waste dump that makes Love Canal look like an Oasis.

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  8. "this guy (Obama) is a nightmare of biblical proportions"

    Absolutely! Before he is removed in 2012 he will inflict social and economic havoc of biblical proportions. The constitution, effectively, no longer exists. He will bypass every rule of law to further his socialist agenda. The people stand by and watch and do nothing as the country is being destroyed right before their eyes.

    Read more: http://thecomingdepression.blogspot.com/2010/07/gigantic-ponzi-scheme-lies-and-fraud.html#comments#ixzz0sWzzFLHu
    Under Creative Commons License: Attribution

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  9. 5:49,
    they are BRINGING the immigrants, and programming us to accept and love these invaders, who are you calling a moron

    ReplyDelete

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