Busted: Bankers and The Global Economy

June 30, 2009

No Excuses for Bernie Madoff

Filed under: economy, investment, money — Tags: , , , , , , — digitaleconomy @ 10:21 am

madoff slammer What has been described as a contrite Bernie Madoff appeared in court with an apology to his victims. Madoff expressed that he believed that he would be able to work his way of his financial scheme, but was never able. Madoff was sentenced to 150 years in prison, according to the judge, symbolic for a crime of “extraordinary evil.” Madoff was perceived as a powerful financial advisor because he was able to create double digit returns for his clients in all financial weather.  For more than a decade, even the SEC overlooked the fact that he was running a ponzi scheme, using new investors to pay off old ones as he lived the high life.

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February 18, 2009

More Fraud for Global Economy

sir-allen-stanford1Most people that have considered the recent plight and cause of the downturn in the global economy have realized that Bernard Madoff is just another tip of the iceberg where fraud is concerned. Now U.S. officials have added philanthropist Sir Allen Stanford of the Stanford Group to their short list of finance fraudsters.

Stanford is accused of “massive fraud,” although this writer cannot see how Stanford’s fraud is any worse than the Madoff fraud or for that matter, banking fraud by financial institutions and bankers that started the global economic downturn and housing collapse to begin with.

I suppose the idea that Stanford’s fraud is “massive” is supposed to make us feel better in that justice is being done. Bunk. We have a long way to go baby until the criminals that belong behind bars, the perpetrators of global financial ruin are removed from their posts. Most offenders of gross financial illiteracy are still operating with impunity as the U.S. government casts there eyes in the distance in the hope of looking for other scapegoats.

sir-allen-stanford-and-moneyStanford is one of those convenient scapegoats ripe for the picking. Until this writer sees action against the current bevy of offending bankers, people in high places that sanctioned criminal activity and financial ruin while supposing to know better, the U.S. government has little credibility in tracking offenders or really cleaning up the banking and finance mess that plagues the nation or the world. ~ E. Manning

January 5, 2009

The SEC, Madoff and Investment

investment-ponzi-madoffU.S. authorities allege that Bernie Madoff delivered consistently strong returns to clients by secretly using the principal investment from new investors for payments to previous investors, in what is known as a ‘pyramid fraud.’ The Securities and Exchange Commission has known about irregularities for nearly a decade and declined to do anything beyond ignoring the likelihood of fraud.

Laura Cohn of Kiplinger’s, in typical elitist style, asks the question that bears asking. In light of Bernard Madoff’s alleged Ponzi scheme, are you taking steps to ensure that your financial adviser is on the up and up?

The good news is that if you are asking that question, you are still financially solvent (probably) and have still have money concerns like investing. That is good, especially for you. However, all this drama must have you asking the question about why you need to trust all these high-powered frauds with your hard-earned cash rather than gaining investing knowledge yourself. That would be bad for the industry because you wouldn’t need them. Ultimately, that is the economic solution for the fraudsters that put this economy where it is today coupled with the plight of government regulators that couldn’t find their way out of a paper shopping bag.  Do it yourself.

bush-and-sec-coxTo be certain, hundreds of blogs have already been consumed with the utter stupidity of government entities that need to be eradicated entirely because they don’t have a real purpose beyond squandering taxpayer dollars.  Perhaps we can look to President Obama to take some meaningful swipes toward ineffective and largely useless government agencies. The fascinating preponderance of economic, investment and banking fraud that has come to a head should have your head spinning. The fact that these overeducated opportunists and complacent politicians have brought this nation to its’ knees bears repeating.

For years we have been gleefully taught that we can trust others with our money: our blood, sweat and tears. Could we have been duped?  Whom do you trust? You’d better think twice bright eyes. The new President of the United States will be setting the tone for cleaning up the fraud on all fronts. What tone Barack Obama chooses has great importance for anyone that cares about this nation. ~ E. Manning

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