Fraudonomics

The economic reality is that nobody in the upper tier of finance and gummint (“your betters” as they like to call themselves) wants you to know just how bad things really are (they doctor the gummint stats so you don’t have to know, and the MSM press hacks dutifully reports their lies unblinkingly and without question). Corruption is the new normal. The scale is tipped in their favor (picture in your mind the last visible bit of the Titanic sticking out of the ocean just before its gone), because they write all the laws, and even if they break them (which they do every single minute of every single day) they can get away without “admitting guilt” and doing time in the big house, or even so much as a black mark on their permanent record. The Fed, Inc. just prints more money to cover their losses (but not yours. Never yours).

“The Big Secret, of course, is that every living creature within a 100-mile radius of Cooper Union would fail ‘this scrutiny’—or that scrutiny, or any scrutiny, period. Not just in a 100-mile radius, but wherever there are still signs of economic life beating in these 50 United States, the mere whiff of scrutiny would work like nerve gas on what’s left of the economy. Because in the 21st century, fraud is as American as baseball, apple pie and Chevrolet Volts—fraud’s all we got left, Doc. Scare off the fraud with Obama’s ‘scrutiny,’ and the entire pyramid scheme collapses in a heap of smoldering savings accounts.” That’s how an acquaintance of mine, a partner in a private equity firm, put it: ‘Whoever pops this fraud bubble is going to have to escape on the next flight out, faster than the Bin Laden Bunch fled Kentucky in their chartered jets after 9/11.'”And that’s why this SEC suit accusing Goldman Sachs of fraud is really just a negotiating bluff to give Obama’s people some leverage—or it’s supposed to be, anyway—according to the PE guy. He dismissed all the speculation that the fraud investigations would turn on other obvious villains like Deutsche, Merrill, Paulson & Co., the Rahm Emmanuel-linked Magnetar and so on.

“’You don’t get it, Ames. Even Khuzami, the SEC guy in charge of the Goldman case, is a fraud; the fucker was Deutsche’s general counsel when they pulled the same CDO scam as Goldman. You have no idea how deep this goes.’”

[ Fraudonomics, NYPress ]

Where is the outrage? Here and here.

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