Saturday, October 30, 2010

Fraud Caused The 1930's Depression And The Current Financial Crisis

Robert Shiller - one of the top housing experts in the United States - says that the mortgage fraud is a lot like the fraud which occurred during the Great Depression. As Fortune notes:
Shiller said the danger of foreclosuregate -- the scandal in which it has come to light that the biggest banks have routinely mishandled homeownership documents, putting the legality of foreclosures and related sales in doubt -- is a replay of the 1930s, when Americans lost faith that institutions such as business and government were dealing fairly.
The former chief accountant of the S.E.C., Lynn Turner, told the New York Times that fraud helped cause the Great Depression:
The amount of gimmickry and outright fraud dwarfs any period since the early 1970's, when major accounting scams like Equity Funding surfaced, and the 1920's, when rampant fraud helped cause the crash of 1929 and led to the creation of the S.E.C.
Economist Robert Kuttner writes:
In 1932 through 1934 the Senate Banking Committee, led by its Chief Counsel Ferdinand Pecora, ferreted out the deeper fraud and corruption that led to the Crash of 1929 and the Great Depression.
Similarly, Tom Borgers refers to:
The 1930s’ Pecora Commission, which investigated the fraud that led to the Great Depression ....
Professor William K. Black writes:
The original Pecora investigation documented the causes of the economic collapse that led to the Great Depression. It ... established that conflicts of interest and fraud were common among elite finance and government officials.


The Pecora investigations provided the factual basis that produced a consensus that the financial system and political allies were corrupt.
Moreover, the Glass Steagall Act was passed because of the fraudulent use of normal bank deposits for speculative invesments. As the Congressional Research Service notes:
In the Great Depression after 1929, Congress examined the mixing of the “commercial” and “investment” banking industries that occurred in the 1920s. Hearings revealed conflicts of interest and fraud in some banking institutions’ securities activities. A formidable barrier to the mixing of these activities was then set up by the Glass Steagall Act.
Economist James K. Galbraith wrote in the introduction to his father, John Kenneth Galbraith's, definitive study of the Great Depression, The Great Crash, 1929:
More Here..

22 comments:

  1. It's a bit long, but Eric deCarbonnel put together a thought-provoking article linking deficits, drugs, CIA, BCCI, media control, disappearing dollars, and the brainwashing of america...
    Link: WHY DEFICITS STOPPED MATTERING
    .

    ReplyDelete
  2. Oh, but wait: it's all the people's fault, all the average joe's in the worl because they, too afraid to pick themselves up by the boot straps to work hard, didn't pay their bills on time and got kicked out of their homes! We should all know by now all the conspicuous consumption in America is only part of the problem. This is all drarfed by the derivatives market, corruption, and theft going on the corporate and government levels. Give them power and they will always abuse it...

    ReplyDelete
  3. This is all drarfed by the derivatives market, corruption, and theft going on the corporate and government levels. Give them power and they will always abuse it...

    Amen to that.

    ReplyDelete
  4. I FEEL WE AT A TAKE ICE CUBES THROW IT AT A BANKERS CAR. AT AT A SHOW IT. THINK THEY WONT GET MAD WHEN ICE CUBES SMACK THERE CAR WINDOWS. THINK AGAIN HOSAY. THE FACT THEY COULD STEAL THIS MUCH AMOUNT FROM WHITE AND BLACK EVERYDAY PEOPLE IS RUDE. AND RUDE PEOPLE DESERVE ICE THROWN AT THERE CARS. WE WILL BE IN BAD STUFF FOLKS GET READY.

    - SAM

    ReplyDelete
  5. Sam I am, I am spam, says sam, spam sam

    ReplyDelete
  6. sam chew ice, he is bad guy, needs ice to happy be, sam I spam I am spam. sammy get ready with ice and steel, sam eat a great big deal, sam love banker so much he like ten dollar banker bills, he loves them very much, sam is rude and rude people love ice, ice is good at cars and people to have and love, sam loves bad stuff to get ready for ice.

    ReplyDelete
  7. The TBTF are therefore too big to jail.
    TBTJ

    Nothing more to learn here ,just move along now Debt Peons .

    ReplyDelete
  8. I am Sam, sam ice crystals on my ham, I eat spam, I speak spam, thank you mam, look what I am, I cheat you I eat tofu I make mams happy i love shoes people too, i chase cars, so does my brother lars, i eat candy bars, lovely ice, dinner time so happy for me, i am free as banker luxury, I am nice I am lice thrown through ice love white rice love to mow the law in thong, smoke a bong

    ReplyDelete
  9. White collar crime, Blue collar time!
    Throw the lying, stealing, cheating bankers,Wall street brokers and lawyers in with the common criminals because that is what they are...

    ReplyDelete
  10. The FDIC was born out of all that to keep people from going to the Bank and taking all of their money out which would destroy the bank.

    In fact since the fractional reserve banking system only requires 10% on deposits then after 10% of the money is gone during a bank run then the other people were screwed.

    The FDIC is supposed to make people feel secure so they do NOT take their money out of the Bank.

    Right now the French are starting to organize BANK RUNS and this idea is spreading in Europe and maybe the USA.

    If you have not alreday the watch the video "The Money Masters" on YouTube.

    ReplyDelete
  11. The fact that you cite Galbraith to explain the great depression tells me you actually believe in Keynesian economics which is scary. It was following Keynes that turned a recession into an 11 year long depression. It looks like our left wing government is once again worshiping at the alter of Keynes

    ReplyDelete
  12. MAKE IT FUN ALL YOU PEOPLE MOCKING MY WORDS. GET IT TOGETHER FOLKS. NO TIME FOR THIS. WE NEED TO DEMINSTRAIT ANGER CAUSE OF WHAT HAPPENED TO ARE PEOPLE. MAKE ME BAD GUY CAUSE OF NOT GOOD WRITING FORM I KNOW HOW TO MAKE POINTS. MY MIND IS OPEN PEOPLE YOURS ARE ANGRY. LETS DEMINSTRAIT ARE ANGER BY THROWING OBJECTS AT RICH CARS. NO VIOLENCE THROW OBJECTS THAT CANT HURT PEOPLE. THROW OBJECTS LIKE ICE-EGGS-MUD-WATERBALLOONS. WRITE WITH A MARKER ON THERE CAR SAYING ASSHOLE. WE NEED MARCHES IN STRREET FOLLOWIT UP WITH PEACE PROTESTS. LETS GET TO WORK FOLKS NO MORE MAKINF FUN OF OTHER PEOPLE WRITING BEST THEY CAN.

    - SAM

    ReplyDelete
  13. Sam, it's spelled "DEMONSTRATE". Please, please look words up in a DICTIONARY if you don't know how to spell them. Otherwise, other posters will continue to make fun of you.

    ReplyDelete
  14. The Sheeple will continue to fall for anything. As they are taught to be DUMB in the "feminized" indoctrinating public school systems....

    ReplyDelete
  15. if fraud is involved you can be sure repukes are behind all of it, those lousy thieving destroyers of countries, including the once great usa

    ReplyDelete
  16. Death to the bankers, death to these damn yankee pirates filibustering are dreams! It's high tide we get some actual bodies who care about what's all there to the world. Demonstrate! Love! Drive your car off the road!

    Hell has no wheels!

    Thanks and perfect spelling,
    Sam

    ReplyDelete
  17. death to sam banker, he is filbustng are ice dreams, get bodies for dead war for us prophet who care about worl all there demons love drive off car road heel on wheels no thank spel bad, stupid sam

    ReplyDelete
  18. Attention All - A long awaited victory is coming on Tuesday, November 2nd, for the newly ascending Conservative Movement! We shall restore the honor and dignity of the United States of America by sweeping aside the liberal/progressive evil that has brought our great nation to the brink of collapse.

    We shall finish the job in 2012 by electing a new President who will again make the Constitution the centerpiece of our Republic! God Bless America!

    ReplyDelete
  19. would that be the conservabot party that put w bush in office? Because he spent us into oblivion, with two lies of a war and bankrupted the country.

    ReplyDelete
  20. lol..why anyone ever put their faith in man, then or now, is the true wonder. all the years of written history and proof and most have learned nothing

    ReplyDelete
  21. Yeah big magical 2012 election. New president will miraculously save a nation that has degenerated to the point of bordering hell. We're worse than Romans were for God's sake. Yeah I feel for you, but come on man you sound superstitious. In all rationale, some magical force is protecting us as a people?

    The USA always sits in the minds of people with ambiguity. The nation has changed over and over, it becomes different every time. WTF? Magical salvation through a new president. Hope and change? What the Fuck!?

    ReplyDelete
  22. Cum 2012 the spirit after the new presidential election will rain down on us like so many happy, white drops of wetness. Better have your umbrellas out. It could get fairly dirty. I'm just hoping for a change in the mood lighting as we continued to get @#$%-ed in the ass.

    ReplyDelete

Everyone is encouraged to participate with civilized comments.