What happens if fraud and misrepresentation of risk is expunged from the U.S. financial system? In President Bush's memorable phrase: This sucker's going down.
There is a fascinating disconnect between the "law and order" society ceaselessly depicted on TV and the realities of the American financial system, which is now totally dependent on lies, fraud, embezzlement and misrepresentation of risk. Remove those and the system implodes. As I observed in Fraud and Complicity Are Now the Lifeblood of the Status Quo:
Fraud, collusion, embezzlement, manipulation and misrepresentation of risk are not isolated incidents, they are now the essential fabric of our entire financial system.Though fraud and complicity are presented in the mainstream media as isolated conspiracies outside the status quo, the truth is that the status quo is now entirely dependent on fraud and complicity for its very survival.Every level of the status quo would immediately implode were fraud and complicity suddenly withdrawn from the system.Bernie Madoff's Ponzi Scheme was systemically ignored despite its blatant transparency and warnings submitted to authorities. Even a financial neophyte could see that Madoff's options bets were an order of magnitude too small to generate the vast profits he was claiming.
Why were warnings ignored? Because the Status Quo implicitly understands that misrepresentation and fraud are the essential lifeblood of America's financial empire. Impose "law and order" on the Wall Street/mortgage crowd and what do you get? "This sucker's going down."
More Here..
let it COLLAPSE !
ReplyDeletegot gold beeches
ReplyDeleteIt's "Got gold, bitchez?" (with a "z"); not beeches.
ReplyDeletego and buy yourself another "bouncy" car. Bling...bling!
ReplyDeleteSome really insightful comments here.
ReplyDeleteGlad I checked in.
If US citizens were anything but clueless sheeple, it would have already collapsed. However, it will continue as long as it is able as US citizens on average are completely dumb....
ReplyDeleteHope & change... long as the sheeple believe in the Illusion there worthless paper has value. One day we'll be told the worthless paper is...well...not worth the worthless paper it’s not worth printing on...and that day is only a few months away.
ReplyDeleteWhat fools we are...Americans, Brits, French, Chinese...we'll all pay the Banksters Price.
The collapse of the great ponzi economy has already occurred ,Starting with sub prime bonds ,Freddie Mac and fannie May . the implosian of Bear Sterns and lehman brothers banks and the derivitive losses at AIG and banks loaded down by dud bonf fraud 'assets"
ReplyDeleteAll else is since then and Tarp and now QE two is fraud for papering over losses and insolvancy in the finance sector by
Socialising losses and by looting the assets of the middle class.
All counterfiet money printing scams , to create fake internal profitability and the illusion of recovery ,as the banks try and trade their way out of their losing positions by ramping up the stock exchange and to try and reinflate the property bubble markets.
The Ponzi economy collapsed because no real profitability existed in america and foreign credit supply crashed .
The ponzi economy was running on foreign credit and on credit for consumers ,extracted by cashing in on the property market bubble .
Using the House as an ATM for incomes counted as 8% of GDP.
That 8% of incomes from the housing ATM has disapeared and is not coming back for the now underwater mortgage debt peons .
The banks arent stupid enough to continue to seek their own interest incomes from that mortgage fe-finance racket and credit card debt money is scarce now too
The national Government ,the finance sector and consumers are now debt ridden ,insolvant, unable to make the promised interest and dividend payments to keep the Ponzi going.
Capitalism needs investment and profit growth to function, but The money markets /credit supply had already died in 2008