Bill Black: What if the SEC investigated Banks the way it is investigating Mutual Funds? « naked capitalism

 Interesting article by Bill Black published at Naked Capitalism. 

The Wall Street Journal ran a story yesterday (12/27/11) entitled “SEC Ups Its Game to Identify Rogue Firms.” “Rogue” is an interesting word with a range of definitions. When it is used as an adjective its meaning is: “a playfully mischievous person; scamp.” The trivialization of the most destructive elite frauds is one of the most common forms of what criminologists call “neutralization” of the moral content of wrong doing. Neutralization increases crime.The actual story makes it clear that the criminals that the SEC was identifying were not “rogues.” They were the CEOs of seemingly legitimate firms. The SEC is identifying “accounting control frauds” – the frauds that cause greater financial losses than all other forms of property crime combined. The SEC is not identifying a few rotten apples, but roughly 100 hedge funds likely to have engaged in accounting fraud. The WSJ describes the SEC’s identification system:

read the full article by following the link below.  

Bill Black: What if the SEC investigated Banks the way it is investigating Mutual Funds? « naked capitalism

Richard Cordray To Lead Consumer Financial Protection Bureau

Richard Cordray To Lead Consumer Financial Protection Bureau Liz Warren out Richard Cordray in to head consumer financial protection bureau. Clearly the republican and President Obama thought Warren would be too tough on the banks and since the republicans are in bed with the banks as is the White House it was predicted that Warren didn't stand a chance. She said it like it was and hit hard for the truth but the banks have leverage in congress and when the banks whine congress listens. It is sad but true. Make big money in penny stocks today

Free market capitalism is fantasy

Naked CapitalismI was reading this article at Naked Capitalism and checking out some of the comments and read a few that had me thinking we were a long way from ever having a free market or fair market system. 

Everyone seems to think a free market is all that is needed to created a robust economy.  However, there is no such thing as a free market.  What we have created is moving farther and farther away from being a free market system then ever. 

The corporations have teamed up with government to create a system that provides relief and resources to the largest corporations.  Politicians have gladly handed over the keys to the financial system and allowed policy to be shaped by the large corporate interest.  It is now a corporate run economy with government stamp of approval.  There is no way the average American citizen can freely participate in the economy without being at risk. 

Some people are suggestion complete government withdrawal from the economy and even cut off the issuance of bank deposit insurance.  It sounds like a logical move to a free market but the typical depositor will get crushed.  There is no way Americans to know what the banks are really doing with the deposits and clearly banks are always putting far too much money at risk in order to remain solvent in the aftermath of a crisis.  It seems clear enough that the banks have lost their credibility after this most recent crisis.  Evidently bank fraud and abuses are caused by government policy.  How absurd?  If this was the case then we would not have seen a crisis fueled by corporate fraud, criminality and greed. 

The interest of the individual citizen who drives the US economy has no one as its champion.  The politicians have caved to corporate bribes and pay offs (even if they are "legal" they still are bribes and payoffs).  The current generation has no one fighting for their opportunity.  The little guy is being squashed all while being brainwashed that Free Market Capitalism is the best way to level the playing field. 

We have been fed propaganda for years that America is the land of opportunity and that everyone has an equal shot at reaching the American Dream.  We are witnessing the pillaging of the public by corporate and government interest as they steal away what precious little opportunity was left for the individual. 

All of this is clear but the most troubling aspect of the entire current meltdown is just how blind people are to the reality of our economic system.  I have heard the phrase "zombie banks" for the current situation for many of the government propped institutions that are just empty shells but I am starting to think the majority of the population is sleep walking into the next era of economics for the country. 

We can not look to the Mainstream Media for guidance because they are bought and paid for by the banks and the government so people need to start thinking for themselves become free thinkers in order to see how badly our "free market system" has been vaporized by the bank/corporate tag team.








http://www.nakedcapitalism.com/2011/07/government-the-dominant-player-in-us-credit-markets.html









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