The Natural Life-Cycle Of A Collapsing System

Retired SEC lawyer James Kidney:  “Kidney said his superiors were more focused on getting high-paying jobs after their government service than on bringing difficult cases. The agency’s penalties, Kidney said, have become “at most a tollbooth on the bankster turnpike.”  Bloomberg link

This retired lawyer from the SEC came out and essentially admitted that the SEC does nothing except apply window dressing with respect to enforcement of securities laws.  Of course, it’s not like this guy split the atom for the first time with this revelation.

The SEC has been nothing but a lap-dog for Wall Street for years.  Everybody who gives a rat’s ass about this issue already knows that.  The current head of the SEC, Mary Jo White, was the chief legal defense bull-dog for Jamie Dimon and JP Morgan at Debevoise &  Plimpton.   Putting her in charge of the SEC is the equivalent of putting a serially convicted pedophile in charge of Kindercare.

Does anyone remember when Obama put that 29 yr. old kid from Goldman Sachs  in charge of the enforcement division of the SEC?   Good job Barack.   And then it was revealed that many SEC rank and file spent more time surfing porn than doing their job.  Again, Mr. Kidney there didn’t exactly invent plutonium with his newest revelations.

I was discussing today’s press release with a colleague, who was happy that the issue was getting media attention.  But I had to point out that a Bloomberg news report is only seen by an audience that already knows that the SEC is useless in its enforcement duties.  In fact, the SEC enables Wall Street’s fraud and corruption.

Most of the country probably is aware that our entire system is deeply corrupt.  But the interest in news and truth for the majority does not go beyond missing planes or the marital status of Hollywood starlets.

The truth is our system is rotten to the core and the marriage between Wall Street, corporate America and the Government is nothing more than the natural life-cycle of a collapsing system.

The only lesson we’ve learned from history is that we don’t learn the lessons of history.

 

 

6 thoughts on “The Natural Life-Cycle Of A Collapsing System

  1. Wall Street always had its bad apples, but now the Market’s apple tress bear nothing but rancid fruit.

    I posted this before (I think) titled
    “3rd circuit gives thumbs down to fraud created market theory”

    http://www.alm.law.com/jsp/article.jsp?id=1202469955659&rss=newswire

    Here is the pdf if you want to read the whole boring, and irritating, decision for yourself.

    http://www2.ca3.uscourts.gov/opinarch/094475p.pdf

    key quote-
    “…promoting honesty and fair dealings is certainly an important concern, but it is also an exceedingly abstract concern. If we were guided mainly by the promotion of free and honest securities markets, then we would seek to expand Section 10(b) liability whenever possible to prevent fraud. But that has not been the approach taken by the federal courts.”

    ……The rot goes straight to the core and corrupts the seeds within…….

    And still the unwashed masses can’t understand why we buy gold and silver.

    For students of Latin out there, here is the quote for our miserable modern times:
    sine fiducia nihil est -without trust there is nothing.

    (Any typos or errors are mine and I offer my most humble apologies.)

  2. The Fed today gave the banksters another 2 years to comply to the volker rule. Changing rules, moving goalposts mixed with a very, very , ignorant population and this shit can go on a long time. What a sick society.

    By Gina Chon
    Financial Times, London
    Monday, April 7, 2014

    WASHINGTON — The Federal Reserve granted a fresh concession to banks that are subject to the Volcker rule on Monday, giving them two more years to offload their holdings in collateralised loan obligations to comply with the measure.

    The Volcker rule, aimed at banning proprietary trading, would have forced banks to divest their CLO investments, resulting in billions of dollars in losses. …

  3. Same ” Tribal ” members at the S.E.C. are at the I.M.F. , World Bank , Bank of International Settlements , F.E.D. , Banks too BIG to Jail , Wall Street , C.F.T.C., and most all other U. S. Government Branches of Government . And everyone wonders why there is so much corruption in the Banking and Securities System ?
    Quote Maurice Samuel , ” We are the Destroyers . We will always be the Destroyers , no matter what you do ! “

  4. Dave,
    When the money dishonest, the value system is dishonest. Therefore, we can attribute the moral crisis to a crisis of values, stemming from a crisis of dishonest money.

    When gold is remonetized, and the currencies are repriced according to it’s free market value, this crisis will begin its reversal.

    The hubris of “confiscating use value” of the dollar in Russia and Iran will usher in this change.
    – R

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