A premature thank you to Bernard Madoff
As I reviewed the formulas for the redistribution of wealth to the global power restructure I have indicated the corporate and accompanied stock or fund fraud. It simply follows a logical procession of steps.
Lincoln Savings and Loan, Tyco, WorldCom, etc.
(E+F) = Y. This is Earnings plus Fraud (bad loans, embezzlement, kickback) =Y (Y is the subsequent failure or financial collapse with conspirators redistributing the wealth to their pockets)
or Enron, Arthur Anderson
(E+F) x (MV+W) = Y. This formula works as Earnings plus Fraud (criminal practices, cooked books, creative accounting) times the inflated Market Value plus W (W is Wall Street insider info, Trader inside tipping) equals Y (which is the collapse with conspirators getting out with massive gains)
The refined formula is shear genius in the GLOBALIZATION WEALTH REDISTRIBUTION CONSPIRACY. It brings the FED and central banks into the formula.
For the housing meltdown Bear Stearns, Federal Reserve, JP Morgan
(E+F) x (MV+W) x (Y+Z) = X. This formula works as Earnings plus Fraud (criminal practices, cooked books, creative accounting) times the inflated Market Value plus W (W is Wall Street (insider info, Trader inside tipping) times Y (which is the collapse with conspirators getting out with golden parachutes) + Z (The “Z” Bankers, Federal Reserve, Government) = X.
X= the underlying final solution. The above example illustrates the X as being the reconsolidation of corporate financial institutions to the selected few. The JP Morgan, Citigroup and USB’s who have managed to influence the government officials such as Hank Paulson and Ben Bernake. It is likely that collaborators were instructed to ignore what regulators, rating agencies and whistleblowers would have seen easily but risked serious consequences.
The Bernard Madoff Ponzi scheme brings serious light to the conspiracy or organized criminal element that Congress and the public just cannot seem to accept. Harry Markopolos, the whistleblower for the Madoff scheme had been working on this as far back as 1999. Markopolos is a financial fraud analyst with excellent credentials and a military service veteran. He struggled for years to get the SEC to respond to the information and proof he had regarding the Ponzi.
During his hearing with the house financial services subcommittee, he stated numerous times he feared for his and his staff lives if they were to be discovered investigating to this depth the size and expansiveness of this fraud. I have written many articles regarding the Russian Crime syndicate welcomed here through EB-5 visa programs after the Soviet collapse. Many of the losers in this scheme were such folks and subsequent death threats to Madoff have been acknowledged by the FBI.
The X factor, here is consistent with my assertions that the CEO’s CFO’s, SEC, CFTC, NASD, FINRA, Congressional and governmental and rating agencies are involved in either fraud, complicity or utter gross negligence, all of which are criminal to degree. Mr. Markopolos reiterated a need for a whistleblowers law to provide a fee or bonus for coming forward with information leading to exposure and prosecution of this and other types of crimes.
President Barack Obama by choosing Mary L. Schapiro to head the Securities and Exchange Commission and in his mandate for transparency and no more business as usual, will have to be again, prepared to open up investigation to government appointees as possible accomplices or enablers as well as conspirators in this enormous and widespread gutting of the financial system in this country and the criminals that have organized themselves from Main Street, Wall street, K Street to Congress.
Bernard Madoff may have strategically played the role in getting the American Jewish community to put the heat on Obama for the kind of whistleblower and regulation that will get some major high level culpability to the justice system. If Obama plays politics here as he appears to be doing with the Bush administrations questionable violations, he may find himself without support of the GOP, the American people and European ally support.
There has been much written about Chris Dodd, the mortgage crisis, ACORN, Countrywide and bailouts. There are many there as well who are involved daily on the financial committees who have a vested interest. The SIPC has to handle the liquidation of assets and claims from those who were defrauded, but other investors may have to return gains if they were so fortunate not to have invested in the last couple of years. The Federal Courts will have to review these cases and I would expect any investors who were on the plus side will be seeing legal action as well.
Unlike FDIC protection, SIPC coverage is not insurance. SIPC is funded by its member firms, and it currently holds approximately $1 billion in reserves. SIPC protection is not intended to reimburse investors for losses due to investment fraud or market fluctuations. Its mission to protect lost or missing assets held at failed brokerage firms. The SIPC reports that through December 2007, SIPC had advanced more than $500 million in order to “make possible the recovery of $15.7 billion in assets for an estimated 625,000 investors.” SIPC covers up to $500,000 of assets for each brokerage customer, of which up to $100,000 may be cash. Similar to FDIC protection, additional coverage may be available depending on the registration of the accounts. The Madoff fraud could greatly exceed those reserves. CAPCO a reinsurer could be on the hook for these excess funds. CAPCO is backed by two unnamed insurance companies, provides an extra layer of protection.
If AIG were one, that would not bode well for the financial bailout money. The question of whether the Madoff scam will eventually fall to taxpayers is uncertain. What would not be uncertain is the outrage and anarchy that would ensue if taxpayers wound up on the hook for the greedy who invested, the incompetent regulators who missed it for fifteen years and the government who continues to allow the Marc Rich’s of the world to go free. If any of the Rescue plan recipients are not for profits on the Madoff list who blindly went for greed over diligence, look out! The losses from this will effect the worsening economic situation as many of these charitable groups will be forced to layoff.
The X factor contains some certainty of the climbing of key players. Markopolos stated that the goal of SEC, NASD, and FINSA workers is to eventually get Wall-Streeter jobs with the big dollar signs. For example we should watch very carefully to see where Christopher Cox winds up. He and his competent under staff have completely resigned to hands off Wallstreet. Markopolos admitted that NASD and FINSA are at odds with the SEC and they generally are intimidated. How intimidated?
Markopolos stated that he went to the Wall street Journal Business section with his information and when they had seen the information, were prepared to write until senior editing declined. If you can intimidate the Wallstreet Journal, you have some big onions and powerful prowess. A premature thank you to Bernard Madoff for exhibiting the macroeconomics of Capitalist America.
This keeps the Alex Jones' of the world bogged down in the interference. Just like the OWS and Arab Spring.
Why both Red and Blue Teams are in the confederacy and the revolving doors always leads back to the Market Beasts and the wizards behind the curtains, this system is one of the best deflections and division tools in the big box of screws.