- Could our society implode on the race issue?
- Business becomes the villain? Is Hollywood Making money from Financial Crises?
- Limited best seller Inside Job: The Looting of the American Savings and Loans
- Now, AT&T, the once proud flagship of American commerce uses outright fraud to boost earnings
- Another New Thought: Helicopter money and fiscal rules
Limited best seller Inside Job: The Looting of the American Savings and Loans
Limited best seller of the not too distant past - Inside Job: Looting S&Ls
Submitted by Old and Gray on Sat, 08/27/2016 - 12:12.
Ten years after its publication, the step by step, blow by blow description of the S&L scandals, the forerunner and forewarning that banks could be involved in a bigger and more destructive collapse were swept aside as the subject book detailing the mechanisms and costs of Act One of the Denuding of American finance was conveniently forgotten ss we blithely progressed through the Gramm Leach Bliley deception by declaring theft and deception is not punishable by law as long as the thieves wear bankers' clothing.
Limited Best seller of the not too distant past: Inside Job: The Looting of America's Savings and Loans (1989.)
Investigative reporters - Stephen Pizzo. Mary Fricker, and Paul Muolo, whose principal professional careers were dedicated to following the normal activities in the S&Ls, were in on the S&L scandal of the 1980s from ground zero, had access to and documented the procedure from President Reagan's signing the Cam-St Germain Banking Act of 1982 - early in his first term of office and followed and documented the progress of raids and collapse through to the end, which might be the successful prosecution and penalization of a few of the principals characters.
Their 443-paged work, which was published somewhere short of the Resolution Trust Corporation (RTC) lifespan which ended 1991 and the final disbursement of a couple of billion dollars short of two hundred billion USD for the partial clean up of the mess, with the majority of loot, as usual, not recovered was a prelude to the larger collapse in the commercial and investment banking sector a generation later. The book does mention that the greater shock lay in wait as the later and greater shock for the world. Despite their warning and evidence of consequence at hand, we proceeded with the Gramm-Leach-Bliley fiasco which declared that crimes were not to be considered crimes if committed by bankers or brokers in the course of dealing with derivatives and in conjunction with that political arm of sanctioned fraud and theft proceeded into the jaws of a collapse ten times as great as that 1980s exercise.
The first step to that practice run with the S&Ls, was detailed in the Introductory chapter of their book, likening Reagan's gathering in the White House Rose Garden to the Garden of Eden, which was later to serve as the back drop for George W. Bush's heralding Act 2 of the denuding of America's Financial Markets was entitled "The Origin Sin" and reports that one of the S&L's executives declaring he'd been waiting for just such a moment all of his banking career. The players were well aware of the potential for looting the signing and deregulation offered.
Depending on memory, the RFC ended up dispensing something slightly short of 200 Billion before it disbanding. leaving the balance to be covered by an entry of approximately $1,000 per taxpayer on the government's fiscal debt ledger. "Chicken feed" when compared to the more mature effort which surpassed the first act by ten times as much debt and destruction. But, wait! Act three is in the works now. We’ll be in the quadrillion dollars deficit produced by the destruction in process, still with no regulations to serve as hindrance with still a device or two to be developed in short order since a repeat of Act One's side stepping responsibility and the refusal to learn from lesson one and that left the field open for Act Two with no regulation established to restrain the ambition and Greed from outdoing itself, has been repeated in the weak all-show-no-substance-Dodd-Frank Bill, waiting still for the next bill modeled after Gramm-Leach-Bliley to absolve the thieves of responsibility beforehand by declaring anew that any illegality or criminality by bankers and brokers cannot be prosecuted or punished and no restitution will be ordered. If there is no punishment or restitution, that deficit will be thrust again on the taxpayer to protect the system so that it may pounce yet again on the innocent, unsuspecting tax payer/wage earner, put him/her out of work and confiscate his/her assets. . . should anything survive the Monstrous Act Three under way.
The real lesson learned from this repeating drama is that we wouldn't know what to do with all our wealth if not for the free-rein predatory catering paths left for the criminals running our business world.
Where are we headed this time around? And, why?
Well, there's the reverse mortgage foray subterfuge yet to be built on bit coins and blockchains so as to sidestep the too slowly moving currency systems we've relied on for old fashioned mano a mano transactions - legal currency is too slow in electronic performance and can be traced in its realistic path and physical reality existence. We've already discovered that theft of bitcoins, etc. cannot be traced so we are fairly well set up in that respect for the really big show.
For one thing we keep deliberately darkening the path of money so that it cannot be traced in any larger quantity. Before we know it, currency as currently described will be illegal tender for any and all debts beyond $5 or so, so that we'll all be forced to fall in with the bogus and unstable-by-design currency being inserted a step at a time into the system. In preparation for the coming inflation which is intended to be our salvation, (that is the same kind of inflation experienced by France in the eighteenth century - twice. The bit coin is now worth something like a mythical $400+ per coin (destructive fromt eh viewpoint that it represents a claim on the official currency and any satisfaction of claims for payment will leave the normal operating system unable to conduct business and more layoffs and more starvation will plague us) - laying out there exposed(!) all set to be stolen at will by technologically adept thieves - No one else understands how the system works. and no one stands responsible for security or stability.
For a second reason the door is left open to the thieves and schemers, the people most deleteriously affected by the theft cannot find the time to acquaint themselves with the fundamentals of money, profit and the limitations of which the principals in our commercial activity defined too imiting and seek any opportunity to operate outside what is generally accepted as the sphere of commercial activity. Players would have us believe the operations are too complex, to be understood and that they haven't the time to unravel the secrets of the separate culture of commerce and money.
Thus, the general public knows of the plans, not the specifics or any starting point perhaps, but they have a general sense - "unmethodized" of course - that's why the survey of consumer confidence continues to drop along the way - the drop in confidence being an indication that we are progressing along the poorly lit path into trouble, loss of wealth, accumulation of debt and another generation or two of fewer job opportunities and diminished income. As that lack of confidence builds, the plunderers will spring out of hiding and begin shredding whatever is left of our venerable system which took six thousand years of inter-cultural community effort to arrive at this point of refinement. But one declaration of intent from central bankers springs from the dedication to the inflationary process to provide a business profit margin can be as devastating as several plutonium bombs in destroying civilization.
We're being prepared for that failure, too. A recent voxeu paper addresses the issue of "Failed States and the paradox of civilization: a paper offered to us as "New lessons learned from history". This is "the most pressing international policy concern in the post-cold War era from the Fund for Peace (a thought borrowed from their source, the Fragile States Index of 2015). The reference there, apparently, leads to George W. Bush's "War on Terror" and the push against Iran of 2003 is pointed to as the inauguration of the big push in this direction. many states in the mid-east and Africa have disintegrated since that fateful date of proclamation in Washington, D.C. They may still be protrayed on the political maps. but they have become dysfunctional since that date.
The public cannot tie the connections together usually because the importance of the consequences to such policy statements are never emphasized a the time, nor are they referred to subsequently to remind people who determined what political path was set out and how. That may due to the constant search for new scandalous declarations or efforts. Our politicians are so prolific in those areas in their ongoing efforts to keep the public confused as to how they (the politicians) have failed to perform their duties in performing their assigned and expected duties and achieving their own brand of stability. Not many people keep a political diary of politicians' behavior as did my wife. At election time, she'd sit down with her book and ask who I intended to support, and one after the other, confront me with poor performance records and flaws in their activities and alliances and ignored political promises. She would then weigh out the discrepancies with a personal scale of values that made sense until you considered who she would vote for and the make up of the various houses and the political power needed to advance toward her envisioned goals.
Something needs to be sacrificed to achieve political goals and this recognition and the decisions required to serve ends is not simple thing.
Some process similar to this is required to make sense of the money game, balance off the various powers and hold onto what we have each acquired. When we do so, we do not actually exercise easily defined principles, and not having maintained daily journals of performance, we'll fall back on secondary details to supplement our usually flawed memories. . . such as how does he/she conduct themselves in public and the behavior of their family members and associates. HOW far appearances carry in the decision making process is exemplified by three books on my bookshelves. On one occasion in Gloucester, Mass, we were fortunate to meet Arthur Schlesinger. I couldn'r resist, opened the conversation, and it continued as we awaited seating. After the short interchange my wife asked who he was and commented on his pleasant demeanor.
Sometime later, in a used bookstore we frequented, she called me over to point out a book and it was volume III of a series on FDR's early, productive years accompanied with her firm instructions to buy that book, authored by Schlesinger. I then spent a few years looking for the two companion volumes. The last not acquired until after her passing eight years ago. They were definitely worth the extended search in my effort, but you can see the impulse to buy them, originated from a trusted source and she was right in her decision however complex the path it followed.
Most of our decisions on critical issues follow such origins and include such inclinations. If we don't have the time to follow the logic path, another may conveniently present itself to us. And, if it's the only path available and seems rational, we'll follow it and hope it proves beneficial. So it is with money. It's there, we deal with it daily, we must know something about it. But, do we? And/or do we have the time to study the particulars of currency and its applications and effects in our lives and whether what the rest of our society intends for its values and uses is allied with ours. Obviously, as in the cases discussed here, it may not. And, we look on it as a matter of trust and faith beyond our control. It may not and should not be if we don't wish to spend our lives accumulating a personal stock of money many times over ending only with an inadequate supply when our productive careers are over. From that point most of us have no more than what we've painfully earned and saved once depleted, little chance of gaining any appreciable replacement. In the meantime, it is too complicated a process to tear us away from our smart phones or other attention-holding devices, in a way that makes us victims of the players, who have few other sincere interests to match their prime interest in life getting control of as much of other peoples' assets as possible. That's more than simply the capitalist view of commerce and business.
While we're at it, another indication of distrust in our current direction is the fact mentioned by Saldeck - publicized by PBS that Millennials refuse to build up credit card debt implying they are thus holding us back from "normal" development. We're breeding and raising unpatriotic laggards, the entire lot of them! In that respect, One question is puzzling:- Does that include those young people who are not gainfully employed at this time - due primarily to business's machinations - with banks' and governments' collusion??
The centerpiece of this article the "Inside Job" was stumbled over in retrieving a 1991 NBER publication, "Financial Markets and Financial Crises". "Inside Job" was listed in that bibliography which shows by what manner of accident we can discover where we've been and what we've been exposed just through the accident of Being in the right place at the right time or following the right instinct. This has characterized my work since the first accidental discovery which established a reputation, hated by those who did not want to be unveiled in their doing "God's Work; but, then, O&G feels he has been led to these discoveries by some inexplicable force controlling his moves.
Is that a "gift" – or, just a "forced" explanation?