Fraud the cause of the credit crisis, fraud stalls the recovery, Greece crisis spreads to Italy, Euro zone bound to failure, US debt rating to be revised, debt ceiling to be raised again, Municipal credit ratings also downgraded, harmony in the system is coming to an end soon.
As we have said for many years crime on Wall Street, in banking and in corporate America pays. One just neither admits or denies and lets the corporate shareholders pay the fines. These are today’s untouchable, who steal billions and get away with it. Financial institutions are too big to fail, as are their key employees. To a great extent fraud and other criminal behavior caused the credit crisis and lack of recovery that we have witnessed over the last 5 years. We have had top officers of firms see their companies headed for trouble and with this inside knowledge they have cashed out their share holdings. Then there were the predatory lenders, syndicators of bonds, which contained mortgages, now known as toxic waste, that were criminally given AAA ratings when they deserved BBB. We had some 1,000 corporate officers who backdated their options. Only one was criminally prosecuted when they all should have been. Prosecutions have come few and for between, because the SEC, CFTC and the Justice Department aid and abet these crooks in order to keep harmony in the system, which is coming unglued. They have always done this, but over the past 5 years even the uneducated can see what has and is taking place.
In fact the more outrageous the crime, the less it is liable to be pursued. This non-pursuit of crime needless to say encourages more crime and further damages overall corporate and financial sectors. There is no accountability and we see none in the future. Let there be no mistake this financial crisis is worse than the last depression. This continuing degenerative process can only assist in a further degeneration of the system.
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