Happy Ponzi Day!

Charles Ponzi was born 129 years ago today, so I guess that makes it Ponzi Day today. The man for whom the pyramid scheme was named though, was a chump. Today's schemers have been many times more successful. By the time Ponzi's scheme peaked in 1920, Wikipedia notes that "he had made $420,000 ($4.59 million in 2008 terms)." See what I mean? $4 and half million isn't even enough for today's ponzi artists to get out of bed. For example, let's look at the currently best-known ponzi artist, Bernie Madoff. The amount missing from Madoff clients' accounts was nearly $65 billion, although that includes fabricated money-- actual losses total about $18 billion. Even at $18 billion though, that's still almost 4,000 times the ponzi scheme than Ponzi himself. Madoff made headlines again this week, saying that “It’s unbelievable, Goldman … no one has any criminal convictions. The whole new regulatory reform is a joke. The whole government is a Ponzi scheme.” And who better to know Ponzi schemes than the man who bested Ponzi?

Continue ReadingHappy Ponzi Day!

Matt Taibbi asks: “Why isn’t Wall Street in jail?”

At DemocracyNow, Matt Taibbi discusses why, on Wall Street, Nobody goes to jail."

Every single former investigator or current investigator that I talked to said the same thing: Madoff went to jail because the wrong people suffered. You know, it was famous actors. It was, you know, the glitterati in New York. If these were teachers and firemen and all the usual suspects—you know, look at the—we have a million people in foreclosure in this country right now, and a lot of them are there because of predatory lending and because of this fraud scheme, but there are no criminal prosecutions. I think that’s the reality now, is that we don’t see anybody being criminally targeted unless their victims were powerful people themselves. We have two-and-a-half million people in jail this country, you know, more than a million who are in jail for nonviolent crimes. And yet, we couldn’t find a single person on Wall Street to do even a day in jail for losing 40 percent of the world’s wealth in a criminal fraud scheme? And that tells you that we have—this goes beyond the cliché that rich people have better lawyers and they have an advantage. This is a step beyond that. This is a situation where the system is completely corrupted, and it’s true regulatory capture. The SEC and the Justice Department are essentially subsidiaries of Wall Street.

Continue ReadingMatt Taibbi asks: “Why isn’t Wall Street in jail?”

The sordid details of the NBC and Comcast merger

Here's how it happened. If you read the entire account by Peter White, you'll be dismayed, though not surprised:

Comcast met behind closed doors with the FCC to map out the future of broadband service and video streaming over the Internet. Anyone who wonders how federal banking regulators got captured by the financial industry, or how lawmakers got neutered by the insurance companies on the health care bill, or how big money is going to buy the next presidential election, should study the Comcast merger. It is a cautionary tale of things gone awry in Washington, where corporate speech is heard and heeded and the voices of actual citizens are ignored.

Continue ReadingThe sordid details of the NBC and Comcast merger

More thoughts about Wikileaks and the First Amendment

Glenn Greenwald is one of my most trusted self-critical sources of information. He writes for Salon.com. Check out this post (and explore his other recent writings) and consider viewing the short video interview at CNN, and you’ll see why I’m so cynical about the mainstream media, including host Jessica Yellin of CNN (BTW, the ex-Bush adviser on this clip is really a piece of work). And then check out this post and the following comments, where Yellin tries to redeem herself: The following comment to the video sums up Yellin’s alleged even-handedness nicely:

Jesse Frederik December 28th, 2010 7:33 pm ET Compare the questioning of Fran Townsend: "[After showing a video of Joe Biden calling Assange a high-tech terrorist] Is it fair to call him a terrorist?" "Is there anything good that can come from what Assange is doing?" To the questioning of Glenn Greenwald: "Shouldn't he go to jail in defense of his beliefs?" "Any qualms about that he is essentially profiting of classified information?" [Bob Woodward anyone?] And do you see any irony in the fact that he's making money of a corporate publisher?' "What is his ultimate goal, beyond embarrassing and disrupting the US government? What good do his supporters hope will really come from everything he's doing?" "Do you think [the rape charges] are part of a smear campaign? And beyond that do you think it hurts his credibility?" Is the difference in the questioning not obvious?
My feelings about Wikileaks and the person(s) that leaked the most recent cables are inextricably woven with the many disturbing revelations disclosed by Wikileaks. This is not the sterilized slow drip of information that you get from the mainstream media, such that we only really learn what was going on 30 years after we could have done something about it. Wikileaks has enabled a torrent of important and often disturbing information and it is causing massive embarrassment to the elites that run this country, and they run it far too often in secret. Yes, I live in the U.S., but it is no longer my country. The leaders of the U.S. rarely speak for me anymore because they don’t treasure the First Amendment, they are crushing our children with debt and they are xenophobic and unapologetic warmongers and torturers. [More . . . ]

Continue ReadingMore thoughts about Wikileaks and the First Amendment

Substitute NYT for Wikileaks and substitute Iran for the United States

Wikileaks continues to be punished for being one of the few organizations brash enough to inform us what our governments are really doing and why. This is intolerable, of course, because the U.S. government is being run by big corporations and wealthy people who, for the most part, are driven by greed--so sorry to break this to the kids who are studying civics in grade school, where they don't tell you about armies of lobbyists, and they don't tell you that the banks own Congress. The true powers that be are running the federal government in secret and they are, regrettably, running it into the ground. That's what one should expect when there is no sunshine to keep powerful people accountable. What we have is a needlessly warmongering, debt-ridden secret and personally invasive brave new government.   I truly wish I didn't believe these things. Consider that our government first attacked Wikileaks by starving it financially, despite the lack of any charges filed against it. They did this by harassing Amazon and various financial organizations to make sure that Wikileaks had no funds to fight in Round II, which is underway. We now know that there are secret subpoenas being issued by the US, and thank goodness that Twitter had the decency to inform its users that their privacy is being invaded, unlike the big U.S. telecoms, who have a long documented track record for turning over our private information without informing us (encouraged very much by President Obama's agreement to grant them retroactive immunity for past invasions of our privacy.  Julian Assange sums up the current grand jury proceedings like this, and we know of this only because the U.K. Guardian has continually refused to be the lapdog of the U.S.:

The emergence of the Twitter subpoena – which was unsealed after a legal challenge by the company – was revealed after WikiLeaks announced it believed other US Internet companies had also been ordered to hand over information about its members' activities. WikiLeaks condemned the court order, saying it amounted to harassment. "If the Iranian government was to attempt to coercively obtain this information from journalists and activists of foreign nations, human rights groups around the world would speak out," Assange said in a statement.
Glenn Greenwald comments further:
It's worth recalling -- and I hope journalists writing about this story remind themselves -- that all of this extraordinary probing and "criminal" investigating is stemming from WikiLeaks' doing nothing more than publishing classified information showing what the U.S. Government is doing: something investigative journalists, by definition, do all the time. And the key question now is this: did other Internet and social network companies (Google, Facebook, etc.) receive similar Orders and then quietly comply? It's difficult to imagine why the DOJ would want information only from Twitter; if anything, given the limited information it has about users, Twitter would seem one of the least fruitful avenues to pursue. But if other companies did receive and quietly comply with these orders, it will be a long time before we know, if we ever do, given the prohibition in these orders on disclosing even its existence to anyone. UPDATE III: Iceland's Interior Minister, Ögmundur Jónasson, described the DOJ's efforts to obtain the Twitter information of a member of that country's Parliament as "grave and odd." While suggesting some criticisms of WikiLeaks, he added: "if we manage to make government transparent and give all of us some insight into what is happening in countries involved in warfare it can only be for the good."

Continue ReadingSubstitute NYT for Wikileaks and substitute Iran for the United States