It's All True

Bernie And I Will Reveal All

American Scofflaw

It is clear that market makers are accessories to a scheme that is much, much bigger than Madoff. I don’t know, of course, more than you, but…I think he has in fact indicted himself to cause prosecutors to investigate the entire corrupt system.

The key players in this scheme are 20 or so mega-billionaire hedge fund managers, who operate with a supporting cast that includes not just market makers, but also smaller hedge funds, rogue prime brokerages, corrupt lawyers, dishonest journalists, bogus one-man credit rating agencies, dubious index trackers, bribed “experts,” skalawag statisticians, compromised professors, private investigators, crooked financial researchers, captured government regulators, hustlers, felons, thugs and mafiosi.

The mega-billionaires masterminded their scheme in the 1980s, and ever since, they and their progeny have been working together – raiding and destroying public companies for profit. In the rubble of these attacks (there are hundreds of examples) one can almost always find evidence of unrestrained naked short selling (people selling things that they do not possess – phantom stock, phantom bonds, phantom mortgage backed securities, phantom CDOs, all manner of phantom derivatives).

This is the organized exploitation of our national clearing and settlement system – a system that fails utterly to ensure that traders actually deliver that which they have sold. If the SEC and FBI are looking for a “Ponzi scheme” of “epic proportions” – this is it.

Mr. Madoff surely knows something about this scheme. Market makers (Madoff’s operation was among the better known) are exempt from rules prohibiting naked short selling. They can sell stock that they have not yet borrowed or purchased, so long as they are legitimately “making a market” (i.e. maintaining liquidity) — and only if they intend to settle the trade soon after. In practice, however, billionaire hedge fund managers have rented market makers’ exemptions to manipulate markets with phantom securities – a blatant crime that is rarely prosecuted.

While Mr. Madoff is talking to the SEC and the FBI, I am going to begin telling you more about the scheme that is bigger than Bernie. Soon, I will name those 20 mega-billionaires, their supporting cast — and the man who is their guru. The evidence is pouring in – there is much to reveal.

Let Them Eat Shit

America Scofflaw
Records involving Fannie Mae, the largest source of U.S. home-loan money, were subpoenaed by a federal grand jury as part of a criminal investigation into claims made in a $7 billion civil lawsuit against the company.

Don't expect impartial coverage from MSNBC on this one. David Gregory's wife is Beth A. Wilkinson, who is Fannie Mae's executive vice president - general counsel and corporate secretary. She reports directly to the chief executive officer.

Wilkinson has oversight and management responsibility for all legal issues, strategies, services and resources. Additionally, she serves as the business-oriented, senior legal advisor to the board of directors, chief executive officer, and members of the senior management team.

Ponzi Madness

American Scofflaw

"It's all just one big lie."
- Bernard Madoff to his sons about his $50 billion "Ponzi" scheme

Here is the important point. Most white-collar fraud goes unreported. Corporations often see simply concealing the losses with creative accounting as preferable to the public admission of having been duped. As a result, only a small percentage of frauds ever become publicly know, fewer still result in prosecutions and convictions.

So, for every Bernard Madoff caught and jailed, it is safe to assume there are others just like him still operating and playing their games. White Collar crime costs Americans ten times as much as street crime (but street crime gets the press coverage).

And the comment about Bernard Madoff's scam being the largest may also be untrue. There are currently allegations against Citi, involving former Treasury Secretary Robert Rubin, of a ponzi scheme where the losses have reached into the trillions of dollars and may have been a major factor in the take down of the American economy!