Posted on 08/12/2009 3:01:24 AM PDT by nickcarraway
HARRY Markopolos -- the whistleblower on Bernie Madoff who proved to be much smarter than the SEC -- says there are evildoers out there who will make the Ponzi scum "look like small-time." Markopolos gave a speech to 400 of the faithful at the Greek Orthodox Church in Southampton and predicted major scandals will soon be revealed about the unregulated, $600 trillion, credit-default swap market.
(Excerpt) Read more at nypost.com ...
Bernie would have come down a lot quicker had everyone understood the SEC was asleep at the wheel. But now we know that, why we don’t see a shower of more tumbling Bernies is a puzzle.
The SEC is only capable of cleaning up a mess, it’s never going to be about preventing them. The market should be doing that, and there should have been a lot more suspicion about Madoff.
Social Security is the biggest ponzi scheme of all time.
Yeah praise the “big regulation”!
There are no(official) frauds in CHINA and RUSSIA with a big “REGULATION”...But the regulators controled by those big governments ARE A FRAUD.
It’s a PUBLIC NATIONAL FRAUD instead of particular private frauds ! Make your choice!
There is no other solution else than personal morality and free associations by free citizens
“Major scandals” may be about to be revealed but only if they did not contribute to the present administration’s election campaign and continuing operations. Madoff’s undoing came because he did not contribute to the Chicago machine and now the chicago machine runs the country.
http://online.wsj.com/article/SB40001424052970204908604574334662183078806.html
Perhaps the SEC is complicit
What you have in the SEC is a bunch of Wall Street MBA types working for a government wage at the SEC dreaming of the day when they can be the big high dollar traders they are supposed to be regulating. They are loathe to foul their own nest. I would also dare say some are on the take.
In addition to the CDS market flushing out, I think all the unsettled trades resulting from naked shorts that never covered will be a big shoe to drop. How many stock certificates do you have? Do you really own legitimate shares?
The same but, in reverse?
The money quote:
“To put it in simple terms, it is like buying fire insurance policies from five different insurance companies on your neighbor’s house and then burning down the house,” he said.
The only cure for this is to outsource the SEC and have the investigators work on commission.
The only cure for this is to outsource the SEC and have the investigators work on commission.
Think you should see this.
Only when bureaucrat's jobs and pensions are on the line, will they do a good job.
Nobody else seemed to be coming close. What was Madoff thinking all that time. “I might well die someday in jail for this, but oh what a prank I’m pulling on the public, heh heh heh.”
That's no surprise. A discussion should ensue that this debacle was facilitated by the self-absorbed, carefree, no-responsibility crowd-----who espouse "moral relativity." But don't hold your breath. Read on
The (cough) "brains" behind some of these cockamamie finanical instruments---including credit default swaps---was Lehman Bros honcho. Dick Fuld. Fuld never tired of telling people that Lehman was built to triumph in adversity........his way of motivating the 26,000 employees at his command......which enabled him to take-home $300 million one year alone.
But it also led Fuld and his closest associates to say things that had no connection whatsoever to business reality. Fuld's delusion – compounded by the powerful and destructive forces of ambition within the bank – was propelling Lehman towards catastrophe. The death spiral beckoned. Lehman went belly-up.
THE GLOBAL MELTDOWN UP CLOSE Lehman, Citi, and other Wall Street smart*****...... "securitized and packaged" bank loans that were sold globally as profit-making financial instruments. Financial gain was predicated on the notion that mortgages were a reliable "stream of income" .......b/c since time immemorial, conscientious people owned a moral obligation to repay loans.
We now know the mortgages were the infamous toxic subprime mortgages that went into default b/c they were given to deadbeats who could not pay.......and that they signed off on documents falsified with inflated incomes, and so on.
Thus the revenue stream could not be sustained and the financial instruments fell apart.
NOTE AIG is at the eye of the hurricane b/c its global Financial Products division "insured" more than a $trillion dollars in virtually worthless bank loans....and could not payoff claims. AIG's Financial Products division "insured" more than a $trillion dollars in virtually worthless bank loans.........these loans were "securitized and packaged" as profit-making financial instruments-----BUT they were built on the now-infamous subprime mortgages---mortgages that people could not payback and should never have received.
AIG is an insurance company and is SUPPOSED to hold in reserve monies that the insured might rightfully request in the form of "claims." Some of the insured might never put in a claim.....but the money has to be there....just in case.
When the house of cards collapsed---AIG did not have the money to pay all the claims the insured were demanding. That's why US tax monies are going to foreign companies-----b/c they were "insured" by AIG. Keep in mind that insurance policies are based on "faith" that the insurer respects its "moral" obligation to payoff claims.
As I said----moral relativity.
>>had everyone understood the SEC was asleep at the wheel.
The SEC couldn’t find it’s own A$$ with both hands. . . and a SQL query providing a list of the THOUSANDS of loans for which the FICO score was fabricated/altered/forged by Argent Mortgage...
Oh, did I say that out loud?
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