Saturday, October 17, 2009

More on blatant counterfeiting in Wall Street

A well written, if expletive, article by Matt Taibbi in the Rolling Stone.

This is again about naked short selling - shorting stock that you don't actually have, and someone else then selling this same stock, thus driving the stock down.  It turns out that buying and selling stuff you don't acdtually have is also done in commodities, mortgages, and bonds.
A paper presented at the American Bankruptcy Institute earlier this year reports that up to a third of all notes for mortgage-backed securities may have been "misplaced or lost" — meaning they're backed by IOUs instead of actual mortgages.
He can't get his hands on the smoking gun, but all arrows do seem to point towards Wall Street robbing us all blind, with wolves guarding the hen house in Washington.

This week I watched a homeless man standing with handcuffs while two policemen talked to him and searched his stuff.  Meanwhile there are these companies in the center of our financial world who are basically greedy schmucks laughing while they rob us for billions and billions of dollars.  Greed gone wild.
The nation's largest financial players are able to write the rules for own their businesses and brazenly steal billions under the noses of regulators, and nothing is done about it. A thing so fundamental to civilized society as the integrity of a stock, or a mortgage note, or even a U.S. Treasury bond, can no longer be protected, not even in a crisis, and a crime as vulgar and conspicuous as counterfeiting can take place on a systematic level for years without being stopped, even after it begins to affect the modern-day equivalents of the Rockefellers and the Carnegies. What 10 years ago was a cheap stock-fraud scheme for second-rate grifters in Brooklyn has become a major profit center for Wall Street. Our burglar class now rules the national economy. And no one is trying to stop them.
If history is any lesson, this will end, and end ugly.  It's like watching a tidal wave build up behind you, seeing the water all pull away and you wonder if anyone else is noticing.

No comments: