Madoff - Does The Money Trail Lead To Washington?
I haven't really written of the Madoff scheme for two reasons. One, what is there to say? And two, because I was curious as to whether this was something legitimate that turned south and became a cover up or if it was outright fraud from the beginning. Recent confirmations that Madoff apparently never traded any client funds, confirms that Madoff is likely a sociopath. Apparently at his court appearance on Friday he said that "it got away from him". I didn't see his specific remarks but if this is true, he once again is lying. He never traded. How could something get away from him if there was never any attempt at legitimacy? Apparently he simply took the money and lied about ever trading or investing. It was a Ponzi scheme for at least as far back as the data goes. That being fifteen years.
I do think it is interesting we wrote that the fund of funds concept was a surety to disappear and that Wall Street was riddled with sociopaths. When the Madoff story broke we learned that fund of funds took the biggest beating and have tremendous liability in the Madoff scheme.
It's also interesting that the linked to article cites a single regulator as one of Madoff's desires and we have written twice over the last year that this concept of a super regulator or single regulator would be an incredible mistake. As we wrote, it is what Wall Street wants. For God's sake, the super regulator was Hank Paulson's scheme. Paulson was a Wall Street leader pushing for law changes that destroyed our banking system when he was at Goldman. As we harped, why does Washington need to replace the regulatory structure that has served us well for eighty years and replace it with a single regulator? It simply needs to re-instate the regulation that was overturned. A super regulator offers no checks and balances for points of control & oversight. This will surely increase the probabilities of corruption and fraud.
Some people still actually believe regulation will kill the golden goose. Or do they? More likely those arguing against regulation have ulterior motives and simply don't want the citizens of this country having insight into what they are doing.
There are really good people working on Wall Street but then they didn't cause this any more than you or me. As we have said for years, Wall Street is using our money to speculate against us in the financial markets. They win, we lose. They lose, we lose. Wall Street has become the market and the economy. And, it's our pensions, corporations, government clients, businesses and other institutional customers they've duped this go around. The riches are much more lucrative when duping institutional clientele. They have much bigger pockets. It also means the Wall Street profit bubble is substantially larger than most anyone still imagines.
Anyway, a more interesting take Madoff is where the paper trail leads us. Apparently to Washington. What a surprise. Don't read this is you aren't ready to believe that white picket fences don't exist and that many politicians actually could care less what you think. At least the politicians that have been in Washington for the last twenty years. It would be a glorious day if they would all resign.
As tragic as the Madoff scam is, it is trivial compared to the size and scope of scams perpetrated on Wall Street. We currently have $10 trillion in government money backstopping financials and it's still not enough. The Madoff scheme is one half of one percent of that amount. While I feel great compassion for those who were criminally terrorized and even financially destroyed by Madoff, comparatively it is a distraction. It's time we quit effing around and get the scalpel out and do some major surgery on how our financial system operates. And, more importantly, how it interacts with our political apparatus in Washington.
I do think it is interesting we wrote that the fund of funds concept was a surety to disappear and that Wall Street was riddled with sociopaths. When the Madoff story broke we learned that fund of funds took the biggest beating and have tremendous liability in the Madoff scheme.
It's also interesting that the linked to article cites a single regulator as one of Madoff's desires and we have written twice over the last year that this concept of a super regulator or single regulator would be an incredible mistake. As we wrote, it is what Wall Street wants. For God's sake, the super regulator was Hank Paulson's scheme. Paulson was a Wall Street leader pushing for law changes that destroyed our banking system when he was at Goldman. As we harped, why does Washington need to replace the regulatory structure that has served us well for eighty years and replace it with a single regulator? It simply needs to re-instate the regulation that was overturned. A super regulator offers no checks and balances for points of control & oversight. This will surely increase the probabilities of corruption and fraud.
Some people still actually believe regulation will kill the golden goose. Or do they? More likely those arguing against regulation have ulterior motives and simply don't want the citizens of this country having insight into what they are doing.
There are really good people working on Wall Street but then they didn't cause this any more than you or me. As we have said for years, Wall Street is using our money to speculate against us in the financial markets. They win, we lose. They lose, we lose. Wall Street has become the market and the economy. And, it's our pensions, corporations, government clients, businesses and other institutional customers they've duped this go around. The riches are much more lucrative when duping institutional clientele. They have much bigger pockets. It also means the Wall Street profit bubble is substantially larger than most anyone still imagines.
Anyway, a more interesting take Madoff is where the paper trail leads us. Apparently to Washington. What a surprise. Don't read this is you aren't ready to believe that white picket fences don't exist and that many politicians actually could care less what you think. At least the politicians that have been in Washington for the last twenty years. It would be a glorious day if they would all resign.
As tragic as the Madoff scam is, it is trivial compared to the size and scope of scams perpetrated on Wall Street. We currently have $10 trillion in government money backstopping financials and it's still not enough. The Madoff scheme is one half of one percent of that amount. While I feel great compassion for those who were criminally terrorized and even financially destroyed by Madoff, comparatively it is a distraction. It's time we quit effing around and get the scalpel out and do some major surgery on how our financial system operates. And, more importantly, how it interacts with our political apparatus in Washington.
<< Home