These days I am wondering if Madoff’s biggest problem is that he stole from the rich. Feels to me like when you steal from ordinary people, particularly when it makes the rich much richer, it is called “policy” rather than “ponzi.”
For example, let’s review actions of the NY Fed and its member banks, such as JPMorgan Chase, Goldman Sachs and Citibank. The NY Fed serves as the depository for the US government. The US government has refused to comply with the laws regarding financial management and is missing over $4 trillion (or $14,000 per American.) Whatever money is missing would have to leave through the accounts managed by the government’s depository.
These member banks are also at the heart of the gold suppression scheme documented by GATA.org . They are leaders in the derivatives and mortgage markets and – I believe — related collateral fraud. They were present in the pump and dump of the Internet stocks, the telecom stocks and/or the Enron fraud.
Clearly, they have not prevented the problems with naked short selling or stopped the $1 trillion annual money laundering in the US financial system. And, yet, the media would have us believe that Bernard Madoff is the scandal du jour because he produced above market returns for wealthy clients until it turned out that $50 billion was gone. We are told that rich people lost money. We don’t know who got it. After all it could have been richer people who have exhausted opportunities to steal from ordinary people.
We are told that the moral of the story is that we need more regulation. Which means we give more power to the private and public institutions that are operated, staffed and financed by these bankers and which used existing enforcement to create rather than prevent these problems. Does that sound like a good idea to you?
I say the moral of the story is that we need to find out where the $4 trillion and the $50 billion is and get it back. Crime that pays is crime that stays.
