Mr. Madoff is still hunked down in his Penthouse Prison. Many people would chop off an arm or a leg to be imprisoned in this posh place. He should be penned up in a very small one room apartment in the poorer parts of the Bronx overlooking the Cross Bronx Expressway. It is becoming more obvious that the ‘feeder funds’ were not innocent people but rather, co-conspirators. Of course, unlike three card monty players on 42nd Street or juvenile delinquents spray painting their names on subway cars, these cons are not being rapidly arrested. Typical, they own our politicians and courts.

A Firm Built on Ties to Madoff Faces Tough Questions –

Fairfield raised money for Mr. Madoff mainly through a fund called Fairfield Sentry, which supposedly had $7 billion in assets by 2007. As it sought new investors for Fairfield Sentry, Fairfield highlighted its close control over the fund and the protections it would provide investors.

In a “due diligence questionnaire” made available to potential investors in Sentry, Fairfield promised that it calculated the value of Sentry’s assets weekly and monthly. It also said Citco Fund Services, an independent hedge fund administrator based in the Netherlands, separately calculated the value of Sentry’s assets each month.

Further, Fairfield promised that both it and Citco double-checked the monthly statements from Mr. Madoff’s firm it received against records of the assets held in the fund. To prevent unauthorized stock trades or the unauthorized removal of cash from Sentry’s accounts, “the movement of cash among the Fund’s accounts requires two signatures,” Sentry said.

Obviously, ‘due diligence’ was more like ‘dopey dilly-dallying’.  The con men running the Fairfield Sentry operation knew that people wanted to know if they were careful and not careless.  So they lied about their oversight.  For this alone, they should be arrested.  The SEC does shut down businesses and do arrest people for lying on their prospectus.  Giving these guys time to either flee the country or cover up their crimes is wrong.  But then, nailing down any of these people is very difficult. 


See how clever these cons were!  They used a hedge fund in the Netherlands to investigate a fund in Connecticut.  As if America has a shortage of people capable of doing this.  And what is the use of two signatures to transfer funds if the two guys running the accounts are both con men?  This story of le Affaire d’Madoff gets worse and worse as more details come out.


Bernard Madoff probe focuses on offshore tax havens | Business | The Observer

 Sources close to the investigation said forensic accountants examining Madoff’s books believed he had regularly sent large sums of money to offshore accounts in the Caribbean and Europe. “There are accounts at New York Mellon Bank that we have been looking at that appear to have sent and received money from offshore locations,” a senior source said. Tracking down the money investors entrusted to Madoff is likely to be one of the longest and most complicated financial investigations on record.

Harbeck said investigators were dealing with a “highly complex hybrid fraud”, adding each individual investment account operated by Madoff could be its own self-contained fraud. “But it is still too early to say with any certainty what was going on inside Madoff’s business.”…

On the same day a New York judge ruled that Madoff’s investors would receive no more than $100,000 in cash compensation, no matter how much they lost. The ruling was included in a series of court orders made on 23 December by US bankruptcy judge Burton Lifland.

These offshore island pirate coves are a menace not just to the US government’s ability to collect taxes: they are a menace to ALL international banking and finances!  How dare the Queen allow them to operate with utter impunity?  And how dare the City in London condone, enable and protect these pirate islands?  And even more pertinent: why isn’t the US shutting down these obvious criminal bases? 


The pirates in Somalia are a menace.  But they are like street muggers compared to the mass murderers running the Cayman Islands, just for example.  This is an international crisis.  And one of the elements which can be captured and stopped are these many islands.  They all can be shut down easily.  This is why great nations have navies!  Allowing them to operate just because they are owned by the Queen of England is pure stupidity.  


None of them have either armies or navies.  If the British use their navy to protect these pirate islands, then we declare war on England.  The English people just sat there with their mouths open, catching flies, while the Queen and her Court allowed these tiny islands to ravage the finances of England.  But why do we not slam down on them all?  We don’t owe any fealty to the Royal Bitch.  Off with her head. » Pin-Striped Pirates

This authorised theft, of course, affects us too. We are robbed twice by these gangsters: once when they avoid the taxes the rest of us have to pay, again when the tax havens’ secret banking arrangements cause the crises which oblige us to rescue the banks. As the Tax Justice Network points out, the banking system collapsed because it became indecipherable. The banks lost confidence in each other when they could no longer tell who owns what or who owes whom, and could no longer trust each other’s financial statements(10). Nothing has done more to promote this distrust than the lucrative secrecy the tax havens offer to their clients.

Organised crime also depends on tax havens. The OECD uses four criteria to determine whether a place is a haven: it imposes no tax, there’s a lack of transparency, it has laws preventing the effective exchange of information with other governments, and the money which changes hands bears no relation to the business done there(11). The last three criteria are all essential prerequisites for large-scale crime. In fact it’s doubtful whether the traditional piracy now flourishing off the Horn of Africa would be possible without the more respectable piracy taking place in the English Channel, the Irish Sea and off the Spanish Main. Anyone who wanted to stamp out drug smuggling, kidnapping, gun-running and fraud would start by shutting down tax havens.

But the crime havens have become so respectable that even the British government is now depriving itself of revenue. It has become the major shareholder in the Royal Bank of Scotland, which has offshore subsidiaries in Jersey, Guernsey, the Isle of Man and Gibralter(12). Have the bank’s new owners, in return for our generosity in bailing it out, demanded that it shuts these operations? No. And that’s not the worst of it. The Inland Revenue, responsible for collecting tax in this country, signed a private finance initiative deal transferring its buildings to a company called Mapeley Steps(13). Mapeley Steps, which is registered in one tax haven (Bermuda) is owned by Mapeley, registered in another (Guernsey). Mapeley has boasted of paying no income or corporation tax in any jurisdiction(14).

Why does the government keep these havens open? There’s an answer in Geraint Anderson’s book Cityboy – a crude but gripping exposure by a former research analyst at a City bank. “Eighteen years out of power has made these jokers so paranoid about being viewed as old Labour that every time Cityboys and entrepreneurs asked for business-friendly reforms they rolled over and allowed tax and regulatory changes”(15).

The banks didn’t just ‘lose confidence with each other’….they always knew they were all con men and pirates.  They are gnomes, after all!  No, they got scared of a specific creature: the Derivatives Beast.  All of them are scrambling to hide from this creature.  They all promised to make swaps and placed bets and insured each other and now, all must pay up.  And none can pay up.  So they all have to pretend to not know each other.


You see, if they never appear in the same room at the same time, they won’t have to pay each other!!!!  HOW SIMPLE IS THIS?  Note that all attempts to bring them all together FAIL.  When the Fed tried this in September, NO ONE SHOWED UP except for AIG and they showed up to tell the Feds, they were broke and needed a couple hundred billion to hide the Derivatives Beast so the banking system could pretend to be solvent, not broken.


It is amusing that Monbiot wonders why the British government is content to let the Queen’s pirate islands destroy the British government.  Well, duh!  Who owns who here?  Who owns the US Presidents, past, present and future?  The same gnomes using these pirate outfits to evade taxes and steal from everyone and each other!  As for pirates: they not only kill outsiders, they kill each other.  They are not paragons of trust.  


New Labour is NOT Labour at all.  It is like the Democratic Party in the US: they need the proles to troop to the polls to gain legitimacy but the minute anyone climbs the ladder upwards, they end up being owned by the Real Rulers who are not proles.


History question: how many days did Blair wait before flying to DC to ask Bush, ‘How much are you and your buddies going to pay me?’  He ran to Bush by July that year.  Bush gushed, ‘We use the same TOOTHPASTE.’  I figured, at that time, this was code for ‘we both are easily bribed.’  And of course, Blair was invited to become a Carlyle acolyte soon afterwards.  Like Clinton, he went on to make money being a funnel for ‘charity’ and ‘giving speeches’.  The same path forged by Reagan and the Japanese overlords.  


Now, I sat on this news for several days due to other pressing matters.  But here is a screenshot of the Madoff letter to the SEC that was supposed to be kept secret:


Madoff_SECdocs_20081217 – Business and madoff fraud hedge fundpicture-92

The letter writer feared for his life?  Yo-ho-ho and a bottle of Manischewitz wine.  What were these threats?  How does the Wall Street Mafia operate?  


Of course!  They lock you out of deals.  No one will do business with anyone blowing the whistle if the criminal in question is part of the tribe.  The last sentence of the opening remarks in this letter is a lie.  I would say, not one of the Fund of Funds is naive or didn’t understand what they were doing.  If they were ‘naive’, they would ask ‘stupid questions’ which would uncover the mysteries of the Madoff con game.  


They were GREEDY which is very different from ‘naive’.  Greed leads to being stupid, not naive.  I once was at a times shares resort sale in Florida.  After the wonderful presentation, I yelled, ‘Yes, I want to buy!’  The sales staff was happy!  They ran to me with papers.  I began to read them.  I asked more and more questions, [I was being very malicious here since I had no intention of buying anything] and the staff gave fewer and fewer answers.  


When I got to the business about insurance for hurricane damage, they got hysterical.  I demanded to see a formal appraisal of the property’s value, the insurance statements and forms and I wanted to know if I could collect for any damage, too, or if they were forced to rebuild after a hurricane, at their own expense.


We were shouting at that point.  Then, I demanded to see ALL THE INCORPORATION PAPERS.  This caused major hysteria.  The top salesman threw $40 to me and yelled, ‘Get out of here!  Go away!  Don’t come back.’  It was the funnest $40 I ever earned.


The point is, con men HATE QUESTIONS.  If you keep digging, they get nasty.  But they don’t kill you unless they are Mafia.  Heh.  So the letter writer above wanted to keep making money so he wouldn’t blow the whistle by going to Broad and Wall Street and waving his letter and yelling at the top of his lungs. / Companies / Financial Services – SEC inaction that helped fuel scheme

Stung by claims that it missed discovering a massive fraud, the Securities and Exchange Commission is now poring over Bernard Madoff’s books, trying to unpick an alleged Ponzi-like operation that appears to have lost investors tens of billions of dollars.

But it was the SEC’s decision in the 1990s not to take a stand on the controversial issue of “payment for order flow” that helped fuel the rise of Bernard Madoff Investment Securities, the successful broker-dealer operation two floors above Mr Madoff’s private fund operation in Manhattan….

By paying for order flow, Mr Madoff’s firm siphoned roughly 10 per cent of the volume of trading on the New York Stock Exchange away from the specialist firms that dominated the Big Board’s floor, creating what was known as a “third market”. Then, according to competitors and regulators, Mr Madoff’s firm thrived by trading within the bid-ask spreads, which could be sizeable.

10% of the volume of the stocks went through this crooks hands!  HAHAHA.  That, alone, screamed for investigations.  He milked the system and instead of examining it and fixing these things, as always, the regulators let things run out of control.  The entire concept of the floating currency regime is all about not fixing any flaws in the systems.  Instead, great fortunes were made and lost, exploiting the weaknesses.  


Many graduates from major universities made their livings by finding ever-more sophisticated ways to tap into errors, flaws and system woes so they could capture money that none of the pirates, gnomes or hell hounds deserved in the first place.  Madoff, by cornering a good percentage of the system for moving deals of other people buying and selling stocks, allowed him to piggy back a scam on top of this system.  


It should be laughably easy to set up a system that is secure and doesn’t allow anyone to make money via moving stocks around for others.  The DTCC should do that but WILL NOT.  The people running it want a crummy system so they can milk this particular investor cow herd. / Companies / Financial Services – SEC inaction that helped fuel scheme

In 1990, the NASD empanelled a group of experts to study the subject. The committee was headed by former SEC chairman David Ruder, and included Mr Madoff. The so-called “Ruder committee” delivered a report in July 1991 dubbed, “Inducements for Order Flow”.

The report found no legal basis for restricting the practice of payment for order flow, but recommended that the NASD require its members to disclose in advance the “factors that influence their order-routing and execution decisions”.

The rudderless Ruder Committee was supposed to fix these things.  Well, what a shock: they didn’t.  Of course.  None of these entities fix anything because they don’t want a sane, smooth system.  Where’s the loot in that?  Instead of disbanding and telling everyone, ‘We can’t fix squat because we make too much money with the present mess,’ meant that others who are NOT complicit in crimes would write sane rules.  Of course, this didn’t happen.  Instead, Ruder and his gang let things get worse.


He and his ilk should be arrested.  All the parties who designed, protected and allowed an army of criminals to exploit easily fixed technological or process handling systems, they are as much a criminal as the criminals using these flaws to defraud people.  Money is made magically.  But it is passed hand to hand via human agency.  And it gains its power this way.  


And controlling the CREATION of money is important!  Money loses value if it can be made to appear magically, too much.  And if there is a system to transfer wealth from one pocket to another via games with moving stocks from point A to point B or trading currencies that vacillate constantly in value due to the dollar being utterly unstable…these things are NOT making ‘wealth’ but are destroying currencies!  This is why the vast FX market is NOT a good thing but is utterly evil.  And the moving of stocks should not make anyone rich.  A computer can do this nearly for free. / Companies / Financial Services – SEC inaction that helped fuel scheme

According to Mr Fagenson and other specialists on the NYSE, Mr Madoff paid a penny per share to brokers who routed their transactions through his firm. By exploiting gaps in the bid-ask spreads of, say, eighths of a dollar, Mr Madoff’s firm would make more than 12 cents per share on trades, and give up only 1 cent per share for the order flow. For a firm that represented about 10 per cent of volume on the NYSE during the 1990s, the business model generated big profits.

All that changed in 2000, when the markets shifted from spreads of eighths and sixteenths to decimals. “One thing we can surmise is that when the minimum spread went from a sixteenth to a penny, there was a margin erosion of over 90 per cent,” said Mr Fagenson.

Just changing the number system caused illicit profits to vanish.  Duh.  These same guys like to preach to us about ‘efficiency’ but they hate this concept.  When it is forced on them, they have to find other systems to wreck and then, exploit.  While researching this article, I thought of the book, ‘The Bonfire of the Vanities’ by Tom Wolfe.


December 2007:  No Longer the City of ‘Bonfire’ in Flames – New York Times

Further north, on Tremont Avenue, Moe Stein, the owner of Frank’s Sports Shop, said he now has to disappoint the few adventurous tourists who come looking for rubble-strewn lots. But the Bronx still suffers, he said, from the terrifying image left by the 1981 Paul Newman film “Fort Apache, the Bronx” and the widely panned 1990 movie made from “Bonfire,” with Tom Hanks as Sherman.

The bond traders and investment bankers who populate “Bonfire” are passé now, Mr. Wolfe said, replaced by brash new hedge fund managers who meet clients barefoot, or in jeans with $6,000 belt buckles, as if to say, “You don’t have to like me at all, I’m merely a genius who makes you money.”

But one thing hasn’t changed, Mr. Wolfe said: the allure of New York. It’s what distracted Sherman as he gazed at the glittering skyline from the Triborough Bridge — thinking, “There it was, the Rome, the Paris, the London of the twentieth century” — and missed his turn to Manhattan.

All of 2007, I was screaming about the impending financial collapse.  I knew well before then, well before 2005, even, that the system was doomed.   I knew that the financiers who were the fancy boys were fakes.  I knew that the Bonfire of the Vanities of the 1980’s was going to be dwarfed by the Götterdämmerung wreck of the 2007 Great Depression.    The bond traders and investment bankers were not ‘passe’ at all but were still at the center of the evolving collapse that was rapidly engulfing the entire financial systems of the entire planet.  This goes to show how out of touch with reality, the NYT writers really are.  Heh.


They are paid big bucks to be big stupids.  They can’t help it: no one is going to pay much money to be told the truth.  Especially since conning people is so lucrative.  At no time do the cons want us to ask too many questions.






Filed under .money matters


  1. Impatient Patriot

    Elaine tell the truth, You hid all the snow in your picture.
    Nice rundown.
    Yell it LOUDER maybe it will get out.

  2. criticalcontrarian

    There is an urgent need to go beyond pointing fingers and defining the problem; we know who, what and why. Despite all that all three continue to parade before our eyes. The effort needs to progress beyond faultfinding and analysis to accountability. Until that is addressed squarely and the perpetrators brought to justice and put in jail there will be no confidence regained in the Western markets and economies. This is as important as finding a solution to the financial mess these minions have created. The following commentary makes this quite clear: Deflation has become inevitable:
    After January 21, Barack Obama will have a very small window of opportunity to reassure the world that he is going to do the right thing, and spare no one, if he hesitates, all bets are off.
    Unfortunately, and as much as I hate being on the negative side of outlook, I believe the script is already written, the mould is cast, and it does not bode well for Mr. Obama, and the American people.

  3. criticalcontrarian

    Denninger has very eloquently expressed the same in his 27 Dec. post: To Obama: Your First 100 Days:
    Accountability = Confidence, everything else is fluff.

  4. criticalcontrarian

    In the words of a Central banker, “The way to rob a central bank efficiently is to be a bank executive so skilled in financial engineering that I take my bank to the edge of extinction. I can then swap all my unpriceable, illiquid, engineered credit instruments for good central bank cash and Treasuries. That’s larceny without risk, making the central bank a complicit partner in the looting of its vaults, and earning gratitude and bonuses instead of audits and indictments.”
    “Without transparency of central bank facilities and policies, there can be no accountability for misuse of public resources and abuse of the public trust. Transparency provides an essential check on bank mismanagement, even for central bankers.”
    Very good read and written by a Central banker:

  5. emsnews

    Impatient Patriot, it was 60 degrees today! All the snow, all three feet of it, gone! I was just so amazed.

    About solutions: they are laughably simple and utterly dangerous! We finally got to the center of the Maze. And there is the Minotaur. We can only slay this beast if we give up all pretensions of being powerful.
    This means, giving up our empire! This means, giving up our epic 50 year free ride. It means being responsible for our own selves. It means we must turn away from the present and disown the status quo.
    This way, we can escape from the Maze. But if, instead, we demand we can stay in the status quo, we die. Now, the real trick is, all our allies, our enemies and everyone EXCEPT FOR THE PALESTINIANS AND AFGHANIS want us to keep the status quo going right now.
    The two key groups not wanting this are so desperate, they pray to their Death God to kill us via having us go bankrupt. So they hope the Minotaur will maul us to death.
    Our allies, on the other hand, want us to pretend, there is no Minotaur. It is a figment of our imaginations. There is no blood flowing from our guts as we are hauled into the air by the horns of dilemma.
    The only way we can free ourselves from this Beast is to turn to the Palestinians and Afghanis and tell them, we give up. And even more: turn to China and tell China, we can’t rule the planet. We have to work together. In other words, we must surrender.
    NIXON SURRENDERED TO MAO. REAGAN SURRENDERED TO THE JAPANESE. CLINTON SURRENDERED TO MEXICO. And Bush Jr and his dad are owned by the Saudis and Kuwaitis. We have been surrendering for years and years! Why can’t we really surrender and thus, throw off this horrible mess? Why are we taking on trillions in debts to keep our imperial war machine going just so it can kill the TWO POOREST PEOPLE ON EARTH???
    Gods help us all! The Minotaur will utterly disembowel us. And Obama?
    He won’t budge one inch from the exact center of this maze.

  6. miltthestilt

    This is the best info about this story I have seen on the entire net!!!!!!!!!!!!!! this story keeps getting worse…… this perfect Ponzi scheme of Madoff (Made-Off) continues to fascinate ….A true financial holocaust… He managed to lose or steal 50 billion dollars, which can’t be easy to do no matter how hard you try…… and nobody else knew?????????????? .not the other 2 dozen employees who worked closely with him there?????? they must have been blinded by some sort of quantitative trading wizardry I smell rotten lox..I actually feel bad for Charles Ponzi ..Ponzi scammers will have to change their name to “Madoff schemers”.and Mr.Ponzi will disappear as a mere memory …..but in researching more about hedge funds I came across a few books that were also fascinating… Hedge Fund Trading Secrets Revealed by Robert Dorfman… and Confessions of a Street Addict by Jim Cramer….both these books take you on a great ride about hedge funds how they make and lose millions…… and expose many other scam practices in this game. Dorfman actually teaches his strategies. Great reads

  7. emsnews

    Cramer is crazy. I will never forget him demanding the Treasury and Federal Reserve bail him and his buddies out: ‘There is BLOOD IN THE STREETS!’ he shrieked.
    All, over mere money. I have seen real blood in real streets. While neighborhoods burned down and people ran around, screaming and glass breaking. And no cops to be seen.

  8. nah

    BUSTED! you guys are so busted… even talent cant keep ya’ from BUSTED! your gunna’ git’ BUSTED! hehehe there so dumb they got BUSTED in 4D BABY!
    think there gunna get off scot free, maybe the out is WW3 BUSTED!

  9. Zorro

    Web of Debt

    by Ellen Hodgson Brown J.D.

    Great Read:

    In a February 2005 article called “The Death of Banking,” financial commentator Hans Schicht wrote:
    The fact that the Banker is allowed to extend credit several times his own capital base and that the Banking Cartels, the Central Banks, are licensed to issue fresh paper money in exchange for treasury paper, [has] provided them with free lunch for eternity. . . . Through a network of anonymous financial spider webbing only a handful of global King Bankers own and control it all. . . . Everybody, people, enterprise, State and foreign countries, all have become slaves chained to the Banker’s credit ropes.1

  10. The most interesting part of that “secret” SEC document that I saw was this:
    + + + + + + + + + + + + +
    There are 2 possible scenarios that involve fraud by Madoff Securities:

    1. Scenario #1 (Unlikely): I am submitting this case under Section 21A(e) of the 1934 Act in the event that the broker-dealer and ECN depicted is actually providing the stated returns to the investors but is earning those returns by front-running customer order flow. Front running qualifies as insider-trading since it relies on material, non-public information that is acted upon for the benefit of one party to the detriment of another party. Section 21A(e) of the 1934 Act allows the SEC to pay up to 10% of the total fines levied for insider-trading. We have obtained approval from the SEC’s Office of General Counsel, the Chairman’s Office, and the bounty program administrator that the Sec is able and willing to pay Section 21A(e) rewards. This case should qualify if insider-trading is involved.

    2. Scenario #2 (Highly likely) Madoff Securities is the world’s largest Ponzi Scheme. In this case there is no SEC reward payment due the whistle-blower so basically I’m turning this case in because it’s the right thing to do. Far better that the SEC s proactive in shutting down a Ponzi Scheme of this size rather than reactive.
    + + + + + + + + + + + + + +
    Here’s a guy who’s reporting to the SEC that Madoff is most likely running a Ponzi scheme — over three years ago! Why isn’t this front page news?

  11. criticalcontrarian

    Elaine, as the saying goes, “Those who refuse to learn from history are doomed to repeat it.” BTW, someone in Korea wholeheartedly agrees with your view on Pax Americana in the following commentary: Devaluing the Dollar @
    Artguy, the U.S. Social security System is the largest Ponzi scheme, bar none. Check this out @

  12. GK

    The largest Ponzi scheme in the WORLD BAR NONE is central bank issued Fiat Currency with no backing.

    The best way to visualize this is to imagine that Congress passed The 2008 Kimberly-Clark Federal Reserve Toilet Paper act that monetized (to make something legal currency) the primary output of the Kimberly-Clark corporation, which is toilet paper, as legal currency.

    After taking a nice warm dump, you could whip off a few hundred ‘dollars’ and clean your butt then just flush away the currency. Automatic devaluation is nice because it causes increased demand for money (toilet paper).

    Intercontinental Ex-Lax bombs could GREATLY INCREASE demand for the new ‘money’.

    If you keep the peasants wages frozen at 100,000 rolls per year, but ramp up production of ‘money’ and give all the rolls to your Ex-Lax factory-owning buddies, they can ramp up production of Ex-Lax bombs and then make a fortune lending rolls of TP to the peasants who now need 120,000 rolls per year.

    Now we will need a new faith system. How about we we encourage the worship of steaming piles of Holy Shit!

  13. criticalcontrarian

    GK you have a point. Let’s by all means call Social Security the 2nd largest Ponzi scheme, shall we?!!

  14. CK

    There are certain significant differences between a classic Ponzi and SocSec. In a classic Ponzi, no one can be jailed for NOT joining. No guns nor threats of imprisonment. In SocSec there is always the threat of imprisonment if one tried to avoid joining.
    In a classic Ponzi, the problem is always that the number of new investors must continually increase to pay out the guarantees to the previous investors. In SocSec, the payouts rarely amount to the amount invested by each individual and if they ever should, the ability to monetize lies in the hands of the SocSec operator. Classic Ponzi someone else has to create the money that is funneled into the scheme; SocSec the operators of the scheme can create all the money needed.
    In a classic Ponzi, the promise is that the investor will “beat” whatever the benchmark return of the era is ( usually double it ). In SocSec, that promise is not made, actually a contrary promise is implied, unless you live to be over 100 you will not back your money taken from you and forcibly invested into SocSec.
    Classic Ponzi, investor greed based.
    SocSec, guns based; state power used to remove wealth from the present and thanks to fiat currency and inflation, partially return the money sometime in the future. Let’s not denigrate a good short con by comparing it to Social Security.

  15. emsnews

    Social Security is NOT even REMOTELY a ‘Ponzi scheme.’ It is a collective tax on the working class that supports the working class. Unlike saner countries, the rich get to opt out of this tax when they earn a certain amount of money! And it is the ONLY thing supporting our government right now: all the excess funds collected since that fraud, Reagan, conned us into doubling this tax are used to pay for our wild military spending.
    The rich desperately want you to believe that SS is stupid and you don’t need it. People are CONNED into believing, if you save money, you can retire. Note: all savings are being CONFISCATED by MONETARY MANIPULATIONS. Got that? Good grief, everyone, wake the hell up!

  16. Lets see, I think this is an example of the “Derivatives Beast”. Spent 400 million apparently can’t even sell it for 35. More than an order of magnitude change. What a joke!
    Wouldn’t be surprised if a bunch of Carolina developer fools, made one bet too many. You can’t always double-down cause eventually “the house” demands payment.

  17. I know that I have personally put around $200,000 into social securty. I want my money back.

  18. I was self-employed for over 10 years and each year my income was just about at the cutoff peak for SS. I was what you might call a big-time contributor, and yet, so many who made so much more didn’t care a whit about this country’s future security because they couldn’t see past the end of their nose.
    This country is crying out for a Constitutional Convention. Lets have it in Philly Again. Those were some great meetings.

  19. The Swiss Franc has been on a nice move of late…check out the chart for FXF. Wonder what this means if anything?
    I think its starting to look more and more like “deflation” is what is heading our way regardless of how much paper is printed.
    Time to act accordingly. May be a good time to sell if you want my opinion, but I could be wrong. It could be the Weimer way…..
    Money – what a maze….
    “Madoff took took his hat off and all he was was an old man behind his own curtain – FOOL. Whatch out for the witches”.

  20. Oh, one last thing for the day. What I think is going to be deflated is the US dollar. Other things relatively speaking may inflate in value. I expect they will assuming they actually have value – you know.
    Like a nice 300 acre place in upstate NY. Now that is value.

  21. Gary

    Ha ha

    All those turkeys that harumped the 401K’s as THE way to go
    to replace that wicked SOCIALIST (read “Satanist”) Social Security
    system are eating their philosophy now. Or, at least they are
    eating at KFC now instead of Red Lobster. Maybe the “savages”
    will save us. I just saw a sign in front of the Puyallup’s Emerald
    Queen Casino. “Liberal Slots” Ha ha. Theres my retirement.
    Hell, they even have Rick Springfield and Foreigner tonite
    on a double bill for entertainment. That way if I loose my
    shorts on the blackjack table, I can soothe my soul by listening
    to Rick Springfield sing , “Jesse’s Girl”

  22. CK

    If the combined collective governmental bodies did not appropriate almost 85% of every working man’s dollar, maybe just maybe the working man would not need this collective slavery.

  23. emsnews

    They collect against the poorest workers because they won’t collect from the richest workers, CK. Getting rid of this won’t save you.

  24. CK

    Why steal from anybody? Government=gang of thugs with uniforms. As for my salvation, I will do what I can, and avoid what I must. Forced volunteerism is just another way of saying slavery.

  25. DeVaul

    Modern America is not much different politically than the America during the second half of the 1800’s. Corruption ran from the president all the way down to the elementary school janitor (who was a political appointee, by the way).
    This is the fabled “Golden Age” that many goldbugs and others refer to. It was an age in which 1% of the population owned 99% of all the wealth in the country at its peak. Golden indeed!
    We are at that point again and may even surpass it. What amazes me is that there are any investigations or prosecutions at all given the depth of corruption in our government.
    Like someone over at the Silver Bear Cafe who was talking about the Blagovich affair, I can only assume that Madoff “peed on someone’s cornflakes”, as his con game was well known by the SEC and other insiders for decades.
    So, I wonder whose conflakes Madoff peed on?

  26. emsnews

    Madoff couldn’t run the scam anymore due to both the Derivatives Beast and the need for a banking bail out. This meant paper work had to flow and this meant everyone had to sign names to things that were ‘gentleman’s agreements’ and these had to RECONCILED.

    So his fraud began to hove into view.

  27. OC


    You are goin to enjoy this:

    ‘Bernie’s funda-mental defense’

    That’s right; he’s goin nuts!!!!

  28. kofi

    I think bernie madoff is a evil genious.
    He is simply biding his time. He knows he
    can’t be touched.
    He knows this because in order for him to have
    pulled of this 80billion fraud.
    He had to have help.
    Help in terms of the “palms” that he “greased”
    I am sure if he is cornered like a rat; he
    will expose all of the people
    who helped him from the SEC, IRS, NASDAQ, Investment Banks,
    Politicians in exchange for immunity.

    And HE knows this will never happen, so the circus will go on and on
    But Madoff will walk. How else do you explain only recovering
    950 million of 80 Billion or 1.1854% and not having
    to go immediately to jail.Especially when it has been said
    that he actually invested 0 dollars of the 80billion.

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