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'The Best Way to Rob a Bank is to Own One'

Posted by dreamgarden (My Page) on
Sun, Apr 12, 09 at 18:16

Good old Bill Black. Another person (beside Martin Weiss) who is fully qualified to explain what the banksters are doing to our country and how they got away with it.

Huffington Post blogger Mike Frick asked:

"When will Americans wake up and hold the real criminals - Banksters - accountable for their actions, and pressure the government to enact systemic changes to prevent future abuses?"

How many more banks are going to be asking for tax subsidies and collecting huge bonus's while they watch the 'little people' lose their jobs, homes, etc?

I would like to see the taxpayers show up on the steps of the White House and ask our elected officials WHY we are being taxed without representation. Some bankers are complaining about populist rage. Too bad. They need a wake up call. They need to understand that it is NOT up to the taxpayers to pick up the tab for greedy fat cats who reward themselves when they fail.

Economist: US collapse driven by 'fraud'; Geithner covering up bank insolvency
Stephen C. Webster
April 4, 2009

In an explosive interview on PBS' Bill Moyers Journal, William K. Black, a professor of economics and law with the University of Missouri, alleged that American banks and credit agencies conspired to create a system in which so-called "liars loans" could receive AAA ratings and zero oversight, amounting to a massive "fraud" at the epicenter of US finance.

Black's most recent published work, "The Best Way to Rob a Bank is to Own One," released in 2005, was hailed by Nobel-winning economist George A. Akerlof as "extraordinary."


"A single bank, IndyMac, lost more money than the entire Savings and Loan Crisis," reported PBS. "The difference between now and then, explains Black, is a drastic reduction in regulation and oversight, 'We now know what happens when you destroy regulation. You get the biggest financial calamity of anybody under the age of 80.'"

That financial calamity, he explained, was brought about not by mishap or accident, but only after a concerted effort to undermine and remove all regulations, allowing a creditor free-for-all that hinged on fraudulent risk ratings for bad loans.


Geithner's Stress Test "A Complete Sham," Former Federal Bank Regulator Says
Apr 06, 2009 by Aaron Task

The bank stress tests currently underway are “a complete sham,” says William Black, a former senior bank regulator and S&L prosecutor, and currently an Associate Professor of Economics and Law at the University of Missouri - Kansas City. “It’s a Potemkin model. Built to fool people.” Like many others, Black believes the “worst case scenario” used in the stress test don’t go far enough.

He detailed these and related concerns in a recent interview with Naked Capitalism. But Black, who was counsel to the Federal Home Loan Bank Board during the S&L Crisis, says the program's failings go way beyond such technical issues. “There is no real purpose [of the stress test] other than to fool us. To make us chumps,” Black says.
Links that might be useful:

rawstory.com/news/2008/Economist_US_collapse_
driven_by_fraud_0404.html

article/225897/Geithner's-Stress-Test


Follow-Up Postings:

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RE: 'The Best Way to Rob a Bank is to Own One'

So you keep proving you can cut and paste articles without any critical discussion.

What specifically is wrong with stress testing and why is it successfully used by bank's and their regulators in other countries? Please share some creative thinking, dreamgarden.


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RE: 'The Best Way to Rob a Bank is to Own One'

It seems that dream garden is a quoter ... and a voter ...

... but not a financial common-tater (about which type of person I initiated a thread a few hours ago).

ole joyful


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RE: 'The Best Way to Rob a Bank is to Own One'

It seems that dream garden is a quoter ... and a voter ...

... but not a financial common-tater (about which type of person I initiated a thread a few hours ago).

ole joyful

So... you're getting funnier every day!!


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RE: 'The Best Way to Rob a Bank is to Own One'

Though the Canadian banks have been somewhat more heavily regulated than many, so that they've been evaluated recently as among the strongest in the industriaized world ...

... I've held shares in one of them for 42 years.

"Value" (whatever that means ... I guess that I really mean, "price") per share about June 2007 - $107.00.

It appears that not only did that one have significant exposure to some of the rotten portions of the U.S. mortgage market recently ... but they were backing a mortgage insurance company, as well.

Price per share, last Nov ... $42.25.

Price per share, now ... $51.84.

It seems to me that, rather than being the "robb-er",

I'm more like the "robb-ee".

It sure feels like that, anyway!

What's that you say? ... I'm not alone? That others, not only some bank semi-owners, have suffered a similar fate?

Who's responsible?

Where does the lynch mob congregate?

What's that you say - that there's millions of us??

(Mainly found in mirrors?)

Oh, Lord!

What next??

Best wishes for learning to manage your life more effectively, ...

... most all of us.

ole joyful

P.S. Bought shares in a Canadian stockbroker quite a few years ago.

Later bought out by another Canadian stockbroker.

Later bought out by a U.S. stockbroker, Merrill Lynch. (Drat - all of our good stuff is being bought out by furriners ... making us hewers of wood and drawers of water ... in our own country!)!!

That, a few years later, having got itself into serious financial trouble ...

... was recently, as a pretty sick patient, "rescued" ...

... by a large (but nearly insolvent, itself), U.S. bank ...

... making me the bedazzled shareholder of a U.S. BANK!!

................

................

ole joyful (duct tape over mouth - more or less)


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RE: 'The Best Way to Rob a Bank is to Own One'

ole joyful-"... but not a financial common-tater (about which type of person I initiated a thread a few hours ago)."

Where is this thread you speak of? (!)


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RE: 'The Best Way to Rob a Bank is to Own One'

Hi visionGarden,

It was over on the KT (Kitchen Table).

ole joyful

P.S. I found out the other day that putting quotation marks around the name of your link will erase whatever follows the quotation mark ... but it appears that an apostrophe will get the job done.

o j

Here is a link that might be useful: maybe ... plant a financial 'common-tater'


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RE: 'The Best Way to Rob a Bank is to Own One'

patser-"So you keep proving you can cut and paste articles without any critical discussion."

And you keep proving that its easier to poke those you disagree with (who just might have a point) then it is to respond with an intelligent rebuttal of something other then criticism or indifferent, bankster-laced-pablum.

"What specifically is wrong with stress testing and why is it successfully used by bank's and their regulators in other countries?"

It is probably successful in other countries because they don't use corrupt regulators like Darrel Duchow, ex senior federal banking regulator who was removed in the IndyMac Probe. Care to venture WHY the Federal Government didn't hold the OTS responsible for allowing the IndyMac to falsify their reports?

William Black, a former senior bank regulator and S&L prosecutor SAID what he thinks of the stress tests and I agree. Right now the stress testing being done in the U.S. is nothing more than a smoke-and-mirrors show using false criteria to deceive us so that we will avoiding noticing those banks that are clearly hanging by a thread.

"Please share some creative thinking, dreamgarden."

Instead of focusing on what I'M not saying, perhaps you might care to venture a 'creative' explanation about why you think its OK to sound like an expert ("I know plenty about banking") on one hand, and then pretend you don't know the answer to a basic question ("WHAT massive failure?") on the other.


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NOT a financial common-tater....!

ole joyful, thanks for the link. ;)


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Video with a very different view

This is John Allison discussing the causes for this crisis.

http://www.aynrand.org/site/PageServer?pagename=reg_ls_financial_crisis

Basically, government intervention set the stage for the wreckless banking behavior.

Check here... The MC spends a good deal of time introducing John... I think he starts speaking at minute 3 or so.

He does an excellent job of explaining things.


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