Posted Sep 18, 2020 by Martin Armstrong
QUESTION: The supporters of the left side and of the state/public sector always mention that the private sector is the one that suffers as in general (ex. 2008/2009 AIG case) the public always comes at the end as a fire brigade to save the world.
How would we answer technically to all these people?
ANSWER: They should look at Russia. when everything collapsed, there were SECRET military installations where the upper-class politicians lived lavishly hidden from the public. The left is absolute fools to think for a split-second that the type of government makes a difference. The bailouts are part of the corruption. This is not even capitalism nor socialism — just raw corruption.
The bankers were encouraged by the Clintons to lend money so everyone could own a home. The bankers have long since abandoned relationship banking and moved to transactional banking which I have written about in-depth. Banks, once upon a time, made loans and retained those loans. There was a relationship between the borrower and the bank. The bankers got the Clinton’s to repeal Glass Steagall and Larry Summers and Robert Rubin, ex-Goldman Sachs, ushered in the new era. The bankers could make the loans and then package them and sell them off to investors. Because the bankers could care less about the quality of the mortgage, they just wrote whatever they could to sell to an unsuspecting market of investors.
You are convicted of certain misdemeanors and any felony within a period of ten years from the date of conviction, you lose your Series 7. Banks can be criminally prosecuted many times and the SEC always exempts them from any such restrictions they would impose on a registered person otherwise. The SEC is as corrupt as you could ever imagine. There is never any equal protection of the law because they never treat people the same.
New York City is notorious for charging any firm that competes against New York in New york. Drexel Burnham and Michael Milkin was a Philadelphia firm. They destroyed that firm with over 50,000 jobs and stole their junk bond business in New York. REFCO was the largest futures broker located in Chicago. They were charged in New York and destroyed. But M.F. Global actually blew up because ex-Goldman Sachs Corzine was using the client’s money to trade and lost. Corzine was never charged.
It was Martin Glenn who was the judge in New York on M.F. Global bankruptcy. He was the first one to engage in FORCED LOANS by abandoning the rule of law to help the bankers by protecting them from losses taking client accounts to cover M.F. Global’s losses. That is no different from what we saw in Cyprus. He simply allowed the confiscation of client funds when in fact the rule of law should have been that the bankers were responsible and M.F. Global’s losses should have been reversed. Never should the client’s funds be taken for M.F. Global’s losses to the NY Bankers. Judge Martin Glen placed the entire financial system at risk by trying to protect the bankers. He pampered these bankers by making them the new UNTOUCHABLES. We have to be concerned that there really is no rule of law that will protect you in a crisis when it comes to a New York institution.
This is plain corruption BECAUSE we do not have a real democracy where the people vote. Instead, our “representatives” are easily bribed by oligarchs who existed in Ancient Rome, Communist Russia, as well as the United States. Only a government that is subject to the vote of the people directly can hope to stand a chance against this type of corruption. Turning left or right NEVER eliminates corruption by oligarchs.
Tags: Glass Steagall, M.F. Global, New York Bankers, Oligarchs, SEC