Saturday, May 22, 2010

No Criminal Charges??????????????

The U.S. financial crisis and subsequent economic depression were caused by "control fraud" (see Willaim Black http://www.huffingtonpost.com/william-k-black/the-two-documents-everyon_b_169813.html & J. K. Galbraith http://utip.gov.utexas.edu/Flyers/GalbraithMay4SubCommCrimeRV.pdf )

Investment and commercial banks in Europe and the U.S. were bailed out by governments despite their roles in causing the crisis. The banks that have survived the crisis are bigger and more powerful and more leveraged than prior to the crisis. They reap extraordinary profits betting against governments, U.S. states, and municipalities. All the while, they continue to get nearly free money from central banks.

The insurance industry also played an important role in the crisis by insuring banks risky bets using no collateral or reserves. The US government continues to bail out AIG, which played an important role in the crisis.

Today the Washington Post reports that no criminal charges will be filed against AIG executives:
"The executives, who worked at a unit of AIG called Financial Products, were instrumental in designing complex contracts known as credit-default swaps. For a fee, the firm essentially would insure a company's corporate debt in case of default. The products were intended to be a money-maker for the firm and its parent company. http://www.washingtonpost.com/wp-dyn/content/article/2010/05/22/AR2010052200033.html?wpisrc=nl_headline

The first quarter of 2010 Goldman Sachs made money every single day, not losing one penny. They did this by manipulating financial markets using "flash trading'" (or high frequency trading) and by engaging in naked short selling, among other practices that should be illegal and should result in criminal prosecution. (e.g., see http://www.huffingtonpost.com/janet-tavakoli/scott-patterson-and-janet_b_522006.html for background info)

Unregulated capitalism has produced a Frankenstein monster that is sucking the vitalities from national populations as governments assume the banks losses while enforcing austerity measures (higher taxes and lower social spending) upon populaces now twice victimized by these ruthless predatory entities.

Relevant Links
http://www.huffingtonpost.com/janet-tavakoli/washington-must-ban-us-cr_b_496940.html

http://www.huffingtonpost.com/janet-tavakoli/congress-exposes-potentia_b_440361.html

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