Monday, July 7, 2014

No You May Not Be Originally Aware You Have Been Taken By A Con Artist Scam....

How to Tell If You Have Been Taken by a Con Artist Lex Loeb Contributor Network . When I saw giants of wall street collapsing in a matter of days and not weeks and months I knew immediately that things on the street were not as they appeared to be. Calls for public confidence in the markets immediately alerted me to professional con artists in action and in very high places. The whole idea that the government should bail out everyone and everything on wall street and in the housing market, maybe immediately necessary, but there really needs to be an investigation to find out what really was going on and how securities were manufactured out of thin air. The point on 9-21-2008 came when the biggest two remaining investment banks on wall street were converted to commercial banks. Suddenly they would need to have real collateral to be banks. Seeing they appear to have none at the moment it appears government is going to make them whole with cash infusions. This is a mistake because it appears to be rewarding total out right fraud or at least masking it with the capital infusion that will allow some marks to get some cash out of busted ponzi schemes. All the euphemisms in the mass media about "recapitalization, the great unwinding of leverage, the real estate mess and sub prime mess, etc." Leave out a more important set of words: "OUT RIGHT FRAUD!" No one should have confidence when it appears they have been had. It is a big mistake. By the time people realize what actually happened the money and the con artists will be living with assumed names in Rio de Janeiro or still comfortably fit to repeat the same scams somewhere in Jersey or Lower Manhattan. The way you know con artists are responsible for fleecing you is you start feeling sorry for them. on 9-22-2008 Senator Hillary Clinton appeared on Blomberg Television standing on wall street telling everyone they should take a deep breath and realize their money is safe. She was concerned about the loss of jobs on wall street. But a lot of those people might be completely innocent of fraud but some of them concocted plans to leverage phantom capital out of thin air and sell nothing as important new financial products to some of the biggest banks and financial interests on earth. It is very disquieting seeing the Secretary of the Treasury Paulson being made into a hero . First Paulson spooks the markets by telling markets that no company is too big to fail . After that a few do fail and the domino's start crashing into each other. Paulson switches rhetoric to "No company can fail especially when it looks as if Goldman Sachs, the company he used to run was the next domino in line for the fall. The media just swoons to the dance of the best con artists and few investigative reporters have even though of using the F-Word yet. FRAUD FRAUD FRAUD! The only person I have heard so far using of the regular media sages is Ben Stein and Rogers who beat him too it. There are many people who caused this mess who belong in Jail. It is going to come out. How can we tell there is fraud? First of all we have to realize that our frame of reference is different observing the wall street ship sinking if we are watching it from the shore. We might think oil prices are going up because of corporate greed when most of the rise in prices is past due inflation catching up and the precipitous decline in the US dollar's purchasing power. We think that the housing bubble is causing companies like Lehman and AIG to collapse. But the real reason is they have junk paper that was issued as a security with not assets to back them up of any kind. We think see banks failing but we are not aware that they ceased to be banks a long time ago because they have no money. We don't realize that the so called banks were generating fees off of transactions of phantom securities to pay out million dollar salaries annually to in house traders. Most American's don't really have a clue about what is collapsing in the market or why. The public has been constantly sold perceptions with cleaver advertising. Words like Security, confidence, protection and high yield were always associated with what have turned out to be the worst of financial products. Wake up you were conned by professionals. This is not a tirade against capitalism. capitalism is fine and well. You can go to Cuba where there is nothing to collapse. Cuba's economy collapsed long ago and ever recovered and never will recover till capitalism comes back. The miracle of capitalism in communist China is absolute proof positive that there is no other alternative to a free capitalist system. Market fraud can not be tolerated. Everyone agrees that Enron corporation was a giant fraud. The company grew fast acquiring assets that they could not afford to own. Insiders were making unsustainable profits for themselves. Enron shareholders went along for a wild sky ride that ultimately left holding the bag. It took months and years for Enron employees and stockholders to realize that they had been had by con artists. People already forgot that Enron's business model was designed to imitate the rapid trading and market making of investment firms like Goldman Sachs. Creating value out of thin air sometimes seems to be what happens at the best of large fast growing corporations but the balance sheets are different. The Fraud at Enron was masked by professional accountants working for one of the world's most prestigious accounting firms. Wall street is much more sophisticated with its professional con artists than anything ever seen at Enron. Enron was lame. Enron had immediate links to the White house. Goldman Sachs is not only in the White House it has been controlling the US Treasury. The Treasury has allowed federal funds and federal guarantees to act as marketing tools to sell phantom securities. Unsecured loans were issued wholesale by the big firms with the US treasury given ultimate responsibility to fund them in case the underlying assets lost value. Few people other than wall street insiders were aware that a lot of the derivative securities were completely fabricated con jobs. Wall street con artists can fight back . They have PR firms, ad campaigns, government insiders in both parties, The US treasury , The federal reserve and maybe even the president working for their interests in their present dire need for self preservation. My solution to the crisis is to put the suspect banks and brokers on hold and segregate them from their market making areas of expertise until an independent investigation is conducted.. The Federal reserve should open a retail window and not give the big banks the spread they can now get but should give the prime rate directly to consumers of credit now in trouble. The fed then realizes the mark up without the wall street bank middlemen taking the huge spread profit. Right now the banks don't want to loan out money for good reason. The fed can get 4-6 percent on lending out tax payer money now short term instead of flushing banks with 1 percent or lower funny money. Accounting SWAT teams should be raiding offices NOW before the paper work and computer files all get shredded. It is better that dangerous con artists banks fail than if they stay in business. US capital is not being destroyed. It simply does not exist in places we thought it was because of Fraud. Most people lack any sympathy for what happened to Enron. Your sympathy for wall street now is completely misguided. Banks that fail will be replaced by those that have real assets and that is the way it should be. When it becomes clear that the banks themselves cannot save one another, yes the government should step in but it should also bypass the banks and lend directly from the Fed window to companies that are getting whipsawed. Maybe the banking monopoly is wrong when in this age of the INTERNET the treasury and federal reserve can just interact directly with the public a few million at a time to extend credit at retail rates instead of letting the wall street con artists destroy the whole capitalist system with it's monopoly intermediary financial sham products. The government can make short term emergency loans on condition that the IRS can later seize the company's assets that borrow for lack of payment. Yes amazingly we have a government that can in an emergency loan out temporary tax relief to individuals and corporations with a retail interest rate that keeps the treasury whole. The typical anti-social con artist does not give a damn about his victims. Beware. It is time to start turning against wall street darlings and asking big questions about what kind of banking practices were going on there. The news media is mostly still under the influence of the poor con artists who are trying to save us all. Time to tell the media to SHUT UP and start using words like Fraud, MASSIVE FRAUD, 1000 times bigger than Enron and few derogatory terms too. This is no ordinary market crash we are having . It is a computer driven, faster than humans can think, fiasco and train wreck in over drive. This is not a few bucket shops going bust in 1929 or homes mortgaged in 1929 to buy stocks in fast growing companies. This is way beyond that in fee generating capital expansion schemes that make check kiting look a respectable hobby. It is time to bypass the suspect banks and open the fed as a retail window in the emergency to really quickly stabilize the economy with the IRS empowered to take assets pledged and to allow companies and individuals to borrow against future taxes. This is a huge difference in what you will hear in the main stream media which is all about the poor poor con artists who need to be saved. your future tax liability to uncle SAM is more than half your future earnings so to be able to borrow against that liability immediate is in everyone's best interest. Government may need to cut back on it's spending but that is a good way to save the capitalist system before Government becomes one big stupid WPA program for 30 percent of the population in unemployment lines. Government can make the markets this way without long term consequences. That is how you know that con artists are operating the system when your government is acting to bail out the criminals and leave you holding the bag instead of offering discounted retail rates directly to the public including corporations to shut down the crisis. Things will only end badly if the con artists responsible are not cut out like an unwanted cancer. Government can quickly stabilize everything if it just makes money available across the board based on tax liability as security and / or real property pledged. Loans can be short term with renewal clauses. A good IT professional from Google or Yahoo or Oracle can get the system online and government agencies including the IRS should be able to verify who is who by social security numbers and tax identifications. If borrowing is based on tax liabilities than it has substance underlying it that unsecured loans never had. Freeze the con artists out now. .

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