Big crooks go for the billions

by PIM of SPAIN | October 3, 2009 at 01:31 am

302 views | 22 Recommendations | 16 comments

As economies age, more and more people 'stop productive working.' That is, they get some special privilege, some inside point of view, some conniving advantage. The latest numbers, for example, tell that almost half of all households pay no federal taxes. They collect benefits as jobless benefits, food stamps, education support, day-care, Medicare, Social Security - without contributing to the system that awards them. Add to this number the millions of households that pay taxes but receive a large part of their money from the government itself such as employees, contractors, lobbyists, etc. - and you have enough to win any election in the country.

But the welfare swindlers and food stamp cheaters are small time crooks. The big crooks go for the billions. John Crudele wrote in The New York Post:

"... Sept. 18, 2008 [US Secretary of the Treasury...Henry] Paulson placed his first call of the day at 6:55 a.m., to Lloyd Blankfein, who succeeded Paulson as CEO of Goldman. It's unclear whether the two connected because Blankfein called Paulson minutes later.

"And then Blankfein placed another call to Paulson at 7:05 a.m. for what looks like a 10-minute conversation.

"After that Paulson called Christopher Cox, Securities & Exchange Commission Chairman twice; British Chancellor Alistair Darling and New York Federal Reserve head (and now Treasury Secretary) Tim Geithner two times.

"Then Paulson took another call from Goldman's Blankfein.

"It wasn't even 9 a.m. yet - 30 minutes before the stock market was to open - and Paulson and Blankfein had already exchanged three phone calls."

It pays to have friends in high places. Sept. 18, 2008 was the day the market learned of Paulson's bailout proposals. Could Goldman have gotten word before others? This is not an accusation, just an obvious question, about a remarkable coincidence!

Americans rightly wonder why their taxes should be used to rescue bankers from their folly. In the 1930s, bankers were called “banksters” – to rhyme with “gangsters” – as a result of 1920s swindles such as the sale to small investors of Peruvian bonds that became worthless. Looks similar to what happened this time round with amongst others the subprime mortgages that were sold off with bribed AAA ratings.
It is the utter incompetence and hubris of upper-level politicians and policymakers, collectively out of touch that they don’t even know that they’re out of touch. A parallel incompetence is found in the Big Media, with their overall “infotainment” approach to presenting vital news to the people. It’s a failure of imagination at the highest levels.
Moreover it is odd, as well as infuriating, that investment bankers managed to take the public for such an expensive ride again, and cash bonuses that weren’t really earned.

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PIM of SPAIN

at 06:57 on October 3rd, 2009

Sara that's a very true and clever conclusion you made. Unfortunately that's the case.

Hugh Askew

at 07:43 on October 3rd, 2009

Unfortunately, both of these quotes seem to be very accurate:

"It is the utter incompetence and hubris of upper-level politicians and policymakers, collectively out of touch that they don’t even know that they’re out of touch. "

"A parallel incompetence is found in the Big Media, with their overall “infotainment” approach to presenting vital news to the people. It’s a failure of imagination at the highest levels."

I'm not sure it is "a failure of imagination". More a case of what they think we should know.

It seems as though those at the top, with position, power, money, all know each other, hang out together, and just maybe, cover for each other.

Rory Cripps

at 08:13 on October 3rd, 2009

Hugh: Yes! The "insiders" really have a hold on us!

"It seems as though those at the top, with position, power, money, all know each other, hang out together, and just maybe, cover for each other."

Is there any doubt that they "cover" for each other?

Hugh Askew

at 13:22 on October 3rd, 2009

Well, that has been the pattern for thousands of years. Surely, while not all at the top are that way, it would be difficult not to cover for a "friend" in need.

PIM of SPAIN

at 08:24 on October 3rd, 2009

No doubt as we recently have experienced and meanwhile should know. Cover was kept up for Bernie Madoff by his friends from the SEC who had detailed inside information, from closely involved whistle blowers, about his Ponzi scheme many years before he was finally caught due to the financial crisis, otherwise he would have continued until today and many month more in the future. The 'boys' network is tight and secretly, like the Mafia clan.

PIM of SPAIN

at 08:31 on October 3rd, 2009

Thanks Hugh for your remark "More a case of what they think we should know." Looks to me even better to the point. Anyhow the public is kept in the dark and only a few clever outsiders know how to count the 'beans' with the result to come to conclusions like above commentators expressed.

worldpeace (not verified)

at 08:40 on October 3rd, 2009

I get really fed up with people like you Pim who moan and moan about benefit cheaters /swindlers whatever and I pay your taxes bla bla bla. Your piece Pim fits the usual conservative moralistic scenario of the neighbours next door - 'As economies age, more and more people 'stop productive working.' Well frankly how many businesses can there be, I think benefits are a good way of stopping people from destroying their environments which is happening all over the world. You banana - industrial and business development has a lot to answer for and is indeed the devil in a lot of cases.

Hugh Askew

at 13:33 on October 3rd, 2009

so the "benefits" folks receive, those just materialize out of thin air?

no one has to produce any goods or services, to generate income, to actually PAY for those "benefits"? They just somehow, magically pop up, eh?

Simply marvelous! Incredible!

No wonder you are fed up with the cretins that would think differently.

worldpeace (not verified)

at 08:44 on October 3rd, 2009

Also, you say people dont contribute but just draw benefits. Actually I think those people contribute a lot more than some arsehole who has made millions of profit of the lives of those people and drives a rolls royce and has a lear jet etc. People who are in the poverty line tend to find ways to be more environmentally friendly and not power driven.

worldpeace (not verified)

at 08:47 on October 3rd, 2009

Hugh Askew

at 13:19 on October 3rd, 2009

If you really believe that, then i may assume that you live in utter poverty, so as not to despoil the environment, correct?

No electricity, no running water, eat all your food raw, sleep on a straw mat, and of course, you posted this from the local library, right?

worldpeace (not verified)

at 09:02 on October 3rd, 2009

may I ask... whats your environmental footprint since you seem to travel a lot, flying especially?

Branko

at 12:21 on October 6th, 2009

Hi Pim,

I started reading your articles again, seems like I missed quite a few! A longer comment would be more courteous, but right now I just wanted to show you a short video. A bit vulgar, but I reckon you will like it.

http://www.youtube.com/watch?v=RYA0DsPcbaU&feature=player_embedded

Branko