$50bn Fraud Revelation. A Tip of the Iceberg Causing a Recession?

The Bernard Madoff revelation – The LARGEST EVER FRAUD [ alledged ] in ELECTRONIC TRADING costing Investors some $50 Billion and all UNDER THE EYES of the US Securities and Exchange Commission [ SEC ]. The same person whom was a former chairman of the Nasdaq Stock Market and an ADVISOR to SEC on how to regulate Markets. According to US documentation Mr Madoff has confessed to it all being just one big lie and that he has absolutely nothing.

 

All of this raises much larger questions as to LEGALITY, ELECTRONIC TRADING RECORDS, REGULATORY FAILURE, GOVERNMENT ACCOUNTABILITY and whether Electronic Money is purely MONOPOLY MONEY based upon RISK that may or may not provide dividends!.

 

All eyes may be currently focused on SEC for its failures in not discovering what was going on but does this remove any accountability as to Britain’s Financial Regulatory Authorities which allowed Mr Madoff a Trading Office in London UNDER THE VERY EYES of BRITISH INVESTORS?.

 

TECHNOLOGY has provided a means by which ELECTRONIC TRADING can be established anywhere in the World however on matters of GLOBALISATION, where COMPUTER CABLING connects Nations having DIFFERENT REGULATORY STANDARDS, which end of that CABLE is ultimately ACCOUNTABLE ?.

 

Governments dictate a CLIMATE of STABILITY, of CONFIDENCE, of SECURITY yet Technology DRIVING the FINANCIAL INDUSTRY provides the very OPPOSITE!. Historically Investors relied upon HORSE DRAWN mail delivery which allowed COMPANIES to ride their sea of change but these days “microsecond” profits and rumours serve to build MOUNTAINS of BAD DEBT leaving destroyed Companies in its wake!. Industry used to be about FILLING CUSTOMER ORDERS not orders looking for customers.

 

As a consequence of the CURRENT RECESSION Mr Madoff‘s financial situation has served to EXPOSE weaknesses as to Financial Regulation but could not those very same weaknesses have caused the RECESSSION in the first place?.