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Mike Garibaldi-Frick

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As the Working Class Burns, Banksters Laugh All the Way to the Bank

Posted: 04/04/09 03:38 PM ET

Anyone interested in learning about what is really happening during this financial crisis, needs to watch Bill Moyers' interview of William K. Black (broadcast on April 3rd, 2009). As most of us intuit, the financial crisis has been manufactured entirely by greed and fraud and this interview clearly and concisely exposes this process.

BILL MOYERS: I was taken with your candor at the conference here in New York to hear you say that this crisis we're going through, this economic and financial meltdown is driven by fraud. What's your definition of fraud?


WILLIAM K. BLACK: Fraud is deceit. And the essence of fraud is, "I create trust in you, and then I betray that trust, and get you to give me something of value." And as a result, there's no more effective acid against trust than fraud, especially fraud by top elites, and that's what we have.

BILL MOYERS: So you're suggesting, saying that CEOs of some of these banks and mortgage firms in order to increase their own personal income, deliberately set out to make bad loans?

WILLIAM K. BLACK: Yes.

BILL MOYERS: How do they get away with it? I mean, what about their own checks and balances in the company? What about their accounting divisions?

WILLIAM K. BLACK: All of those checks and balances report to the CEO, so if the CEO goes bad, all of the checks and balances are easily overcome. And the art form is not simply to defeat those internal controls, but to suborn them, to turn them into your greatest allies. And the bonus programs are exactly how you do that.

While the working class fights among itself -- blame the mortgage holders that "lived beyond their means," blame immigrants, blame the unions, blame blue collar workers, etc. -- the real criminals run free with trillions.


When will Americans wake up and hold the real criminals - Banksters - accountable for their actions, and pressure the government to enact systemic changes to prevent future abuses?

 
 
 
Anyone interested in learning about what is really happening during this financial crisis, needs to watch Bill Moyers' interview of William K. Black (broadcast on April 3rd, 2009). As most of us intu...
Anyone interested in learning about what is really happening during this financial crisis, needs to watch Bill Moyers' interview of William K. Black (broadcast on April 3rd, 2009). As most of us intu...
 
 
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04:40 PM on 04/06/2009
Will is selling his book really well.

:-)
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castlerider
"A man's home is his castle"
02:21 AM on 04/08/2009
It's a damn good book, and he's right. Good for him.

.
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Carolab
Just another hostage of the poopy heads
04:21 PM on 04/06/2009
Thank you. I've been asking the same question over and over again.

People don't seem to get it. The powers that be pitted us against each other so we wouldn't go after them.

Yet, any discussion about the Fed is met with "tin foil" accusations.
02:34 AM on 04/07/2009
Earth to Carolab. The accusations here were about fraud by CEOs of wall street banks, not the Federal Reserve.

The Federal Reserve is not a big conspiracy. Perhaps if you did not see Federal Reserve gnomes as secretly in control of the entire world, and hear them in every conversation, and read them in every article, such as here, as if they were being discussed, when they were not, obsessively trying to convince everybody that secret shareholders control the private Federal Reserve and caused the current crisis and all past crisis on past the Civil War, on purpose as part of their nefarious evil plot, people might not react like they do towards what you say.
01:01 AM on 04/08/2009
To GrahamInCanada: The Banks own the Fed. The paper trail goes in a full circle.
12:13 PM on 04/06/2009
It's interesting that the root cause of this crisis seems to be the credit default swaps that allowed banks and investors to hedge their bets by purchasing insuraces from companies like AIG- so if their mortgage backed security failed, AIG would pay them for their loss. It seems that BofA, Citibank, and others have also received payoffs from taxpayer money to AIG. It's interesting because the homeowner did not have the same opportunity to hedge his investment. No one offered me the chance to buy an insurance policy that would protect me if my home went under water, or became toxic or lost value however you want to call it. It seems unfair and somehow illegal for the financial community to have access to an insurance not available to homeowners whose mortgages make up the securities they were able to insure against loss. Reducing principal to homeowners to bring their loans out from underwater would seem to me a fair way to make up for not allowing them to purchase insurance like the bankers. But we know that if it is against the interests of the bankers, then that's not going to fly.
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Carolab
Just another hostage of the poopy heads
04:21 PM on 04/06/2009
The root cause is the Fed. The Fed caused the housing bubble -- just like it caused the dot.com bubble.
06:47 PM on 04/06/2009
Actually... both of those were caused by people with not enough money for their own greed.
10:32 AM on 04/06/2009
Follow the money--Soros
09:09 AM on 04/06/2009
There are no controls. There are no checks and balances. It's sell, sell, sell, regardless of the risk. I work in systems, so I know. Who checks the checkers? Nobody. There is no regulation and it's easy for lenders to fraudulently work around the few investor standards that exist. Audits? Ha. That's another joke. The auditors work for the company- what do you think they are going to do?
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12:30 PM on 04/05/2009
A must see interview from Bill Moyers:

http://www.pbs.org/moyers/journal/04032009/watch.html
11:03 AM on 04/05/2009
The economist's hypothesis is defective. If the CEOs at the big banks were fully aware of how fraudulent the Bush/Main Street mortgages were, they would not have left them o their own balance sheets. They would have had them pre-sold to private/public investors prior to buying them from main Street originators.

Many of the big banks were hoodwinked by the better cons - the ones who lived and worked on Main Street. Follow the money. The Main Street cons got almost all of it. In quantities that dwarf by gigantic amounts the puny bonuses of Wall Street bankers.
09:58 AM on 04/06/2009
Your hypothesis is defective. Most of the loans were pre-sold to FNMA/FHA and private investors, with the servicing remaining with the lender. Foreclosure costs the servicer money. A lot of those loans were 'broken' , had bad data, or were rejected by the investor and fell under the 'take-back' policy where investors can force the lender to repurchase the loan. Believe me, the lenders don't want them on their balance sheet. They have no choice when they screw it up as bad as they have.

Does it really matter who ends up with the loan if the loan is bad? The repercussion vibrates all the way down the chain. The CEOs know what is going on- they are instrumental in policy making for their organization. Any fluctuation in the market value of stock warrants their attention as they are held accountable by the shareholders; believe me they know.
07:59 AM on 04/05/2009
I think the corruption is far to deep and has gone on far to long. The Bankers own the Government. I'm sorry but that does include Obama, and I am an Obama supporter. This is not a right or left issue. Our government has been bought and paid for by the Bankers, Big Corporations, Insurance Companies, and Big Pharmaceutical Companies. These entities wield more power than our votes. The system doesn't work. Our government has sold out to these entities and is corrupt from top to bottom. People keep saying vote Independent that the two party system is actually one party. I think this is true. What they don't mention is if we elected an Independent they would be powerless as well because they would have no political clout because the entities would not back them. It would be impossible to get an Independent elected because the system is rigged. You must be rich to be in politics, and money buys all the politicians. I am tired of hearing all of our legislatures saying they do not know how to fix this mess that all of them have caused. They are fixing it exactly they way they are being paid to fix it.
10:54 AM on 04/05/2009
Of course, what regulation exists, or has ever existed, was put forth by the Democrats, so the notion that the two parties are one is utter nonsense.

Since the 1980s the Democrats have been waning in power, so it is understandable that they have had to compromise in order to survive and stymy the full intent of the Republican revolution. Don't confuse that stalling action as an alliance with Republican efforts. Much of it was intended to blunt their full intent, which was no regulation at all and the total privatization of our society.
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03:20 AM on 04/06/2009
Keep drinking the kool-aid old bean. The democrats have their role to play, and the republicans have theirs. Yet both parties are in essence, one in the same.
02:08 PM on 04/06/2009
Slight differences can have large consequences for those who are on the receiving end of those consequences. Which is why I voted for Obama.

Nevertheless, you are right: the bankers do own the government. And there are solutions that would work, but our elected officials are too beholden to their corporate bosses to enact them.
10:17 PM on 04/04/2009
"When will Americans wake up and hold the real criminals - Banksters - accountable for their actions, and pressure the government to enact systemic changes to prevent future abuses?"

On April 11th:

http://anewwayforward.org/demonstrations/

For more on the American response to the Great Heist, also see Paralytic Debt Poisoning:

http://www.huffingtonpost.com/max-keiser/paralytic-debt-poisoning_b_181577.html
09:47 PM on 04/04/2009
I still believe Obama is doing his best, but he must have had quite a "reveal" upon entering the White House. Now it's like they are trying to prop up an economy that at it's base is out of integrity. Now how is a structure supposed to stand when it's not in integrity with itself? We all realize we've been swindled, but it's not "the American people" who have the ability to hold these people accountable. We can get outraged, but then the media spins it into a bunch of conspiracy theorist, hyper-overreactional minority, while few in the media actually talk about the basic problem with our economy. It's debt-based, that is, there is always more debt than there is money in the system. Furthermore, our money only has value in relation to the other money in circulation. And the entire motive becomes money as a means and an end. Money originally was a convenient way to exchange value instead of always carting around two sheep to trade for a cow. Now it's a thing unto itself.
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05:19 PM on 04/04/2009
"I believe that banking institutions are more dangerous to our liberties than standing armies. If the American people ever allow private banks to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around [the banks] will deprive the people of all property until their children wake-up homeless on the continent their fathers conquered. The issuing power should be taken from the banks and restored to the people, to whom it properly belongs. "
Thomas Jefferson, (Attributed)
3rd president of US (1743 - 1826)
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03:30 PM on 04/04/2009
It isn't just "banksters" - unless you mean anyone in a financial business (banking, investments, insurance.)

I want to blame this whole mess on Reagan and the rise of the right wing back in the '80s. My reasoning goes as follows:

(1) Reagan (et. al.) convinced that Government Was The Problem - and got elected to government.

(2) Reagan (et. al.) started the deregulation craze.

(3) Once regulated business realized that there was more to gain from the lack of a watchdog than there was in a protected monopoly, they pushed congress (and the public dialog) for more deregulation.

(4) Deregulation works because there aren't too many crooks (yet.)

(5) Repeat [3] and [4] above. Over and over again. Until the wheels fall off because the crooks dominate the system.
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mgd2854
Don't believe the 1%
07:27 AM on 04/05/2009
What a breath of fresh air you are, somebody out there gets it! Read the book "The man who sold the world" "Ronald Reagan and the betrayal of Main Street America" by William Kleinknecht. As you say everything goes back to Ronald Reagan. Interesting that Reagan was rated as the 10th best President when more honest historians maybe 50 years from now will label him as the man who was responsible for the United States decline!

If you understand this then it is only rational that the right-wing conservatives deserve to be punished. People that protest in front of AIG are being side tracked the real issue is the economic elite, their lap dog MSM and cable news networks as well as the politicians they have bought out!
03:13 PM on 04/04/2009
Oh, the system will be changed. History tells us that those who rape the public trust eventually get their cummuppance. And anyone who denies this is either a sheep apologist or a cynical fatalist appeasing amoral elite who have tanked our economy on purpose so that they could reap the funny money spoils.
03:12 PM on 04/04/2009
We can change the system, but we have to lose faith in politicians, including Obama; the government is in bed with financial elitists. The solution is of, for, and by the people: we must inform each other and organize to force the government to act in our joint interests, not just elitist interests.

PS: Dont see Knowing.
05:36 AM on 04/05/2009
I agree. I'm very disappointed in how Obama is handling this crisis. For some reason they have more power than our government and he is bowing to it. We must divorice our government from corporations.
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hark
02:55 PM on 04/04/2009
"When will Americans wake up and hold the real criminals - Banksters - accountable for their actions, and pressure the government enact systemic changes to prevent future abuses?"

That's easy: Never.

Stop lobbing softballs. Give us a tough one, like how can we change the system? Whoops, that's easy too. We can't change the system.
11:06 AM on 04/05/2009
I think that most of us do get it Mike, but what can we do??? This impotence is a killer, everywhere we turn, there is a corrupt system.