Put on your party hats, 10k on the way! Oh, we are here already, whatever. So if you invested in the stock market a decade ago you are at the same place you are now.
You made some dividends and got a lifetime of stress from losses and volatility. Was it worth it? You probably would have made more in bank CDs without the stress. They (Wall St, FED , Gov, media) don’t want you to question this concept at all. They want you to think ‘buy and hold’ is a sure fire way to make money so management fees are collected in the meantime. You gained the big goose egg 0, but Wall St DOW 10k shirt and put on your camouflage and let’s step back into the jungle and face reality so money can be made.
I hope wallstreetwrath.com readers recognize that Madoff would still be in business right now were it not for that ‘blip’ in the DOW to 6,500. He absolutely would be. The other Ponzi masters (Wall Street banksters) are still in business because they were bailed out by the government and the FED . This is the only reason why Goldman Sachs (GS) and the other banksters are still in business playing the ponzi game.
Wall Street banks pretty much all failed just like Madoff but were bailed out of their trading and business losses. Both were caught with their pants down. Madoff didn’t have any trading losses (he never actually traded). With the possible exception (not much) of JP Morgan (JPM ), Wall St
Wall St Banksters are still in business because they were bailed out. Yes this includes Government Sachs. So don’t be fooled by CNBC marketing pump as the smartest guys in the room. GS blew up. They weren’t hedged. Who was GS’ counterparty to their AIG trade? AIG was bailed out in order to bail out Goldman Sachs (who is essentially a government contractor now).
When GS (and others) failed the government instantly changed the rules making it a bank holding company. So where are the retail branches of Goldman Sachs for me to open my savings account? Where are the GS tellers giving me a roll of quarters to do laundry? Now that GS is bailed out and back to its highs there is talk of changing it back to an Investment Bank so the stock can go higher! When GS fails (along with the rest), losses are socialized by backing up their toxic ‘assets’ by the government. An Investment Bank isn’t under the FDIC for that pot of money, but a commercial bank is. The minute banks are ‘profitable’ (after a bailout, baloney accounting, and run-up in the stock) change the rules back to an Investment Bank and give it more valuation in the market. So it’s the free market when it works for them, and when it doesn’t, it’s no longer a free market. The USA
What’s the definition of a fall guy? A patsy who gets the blame and takes the ‘perp walk’ so the people can believe that justice was served so the scam can continue. The patsy is always part of a bigger picture and takes the blame for the others so the corruption can go on (Lee Harvey Oswald). Just like Enron was the fall guy patsy of the .com era, Madoff is for the subprime era.
I guess Enron was the only company to use phony baloney accounting? Not so fast. Essentially Enron accounting is not only alive and well in banks (and has been post Enron) but this bogus accounting is sanctioned by the US Government! With the ‘relaxation’ of mark to market (FASB 157) banks (GS, MS, BAC , C, WFC ) can pretty much make up what their garbage assets are worth.
Enron off balance sheet accounting: this was actually continuing post Enron and long before the subprime debacle and the FASB 157 suspension (Off Balance Sheet Accounting never really disappeared). Enron was the fall guy and ever since many financial companies have off balance sheet accounting (exactly as Enron did). American Express (AXP ), Capitol One (COF ) have off balance sheet accounting. Off Balance Sheet Accounting shouldn’t exist at all! Was nothing learned from Enron? Evidently not. Here is Goldman’s CEO speaking of this specifically (remember he’s the CEO. He will be the ultimate pumper of his company and will blow sunshine up yer arse saying only wonderful things of his outfit. Know how to read between the lines).
Off balance sheet accounting shouldn’t exist period. It seems to persist so Financial Statements look nicer (and we must have this). Madoff, was singled out (a good thing) so other scamsters could continue scamming (a bad thing). Just like other companies continued with off balance sheet accounting post Enron there are other ponzi's out there continuing post Madoff. Namely, the US
Madoff was pulling a scam for decades. If the market didn’t collapse to the extent that it did, Madoff would be right now on his yacht and not getting gang-banged in the prison shower (hopefully he is). He’d be still around, what a thought.
The vampire squid (GS) strikes again. How can they fail with a gov't put?
ReplyDeleteTruly astounding, nothing has changed post Enron. In fact it appears the Acounting Standards have gotten worse and the US Government is behind it.
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