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Institutionalized Gangster Government

The rule of law is losing out to tyranny.

by
Tom Blumer

Bio

July 5, 2010 - 12:00 am
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Someone I’ve known for a long time who formerly didn’t follow current events or politics very closely used to ask me, “Are we still okay?” when particularly disturbing news items would make the headlines. My response until the late 1990s was usually a slightly overconfident, “Sure. This is a great country. We can handle this.”

That person hasn’t asked me that question for many years. We both know, as do millions of other Americans, that we haven’t been okay for some time and that the foundations supporting what has made this country so exceptional for so very long are crumbling.

We stopped being okay over a decade ago. In 1998, the country’s president repeatedly lied under oath in front of the American people. As George Will correctly asserted in January 2001: “There is no reasonable doubt that he committed and suborned perjury, tampered with witnesses and otherwise obstructed justice.” Additionally, credible allegations surfaced that, as Will noted, made it “reasonable to believe that he was a rapist 15 years before becoming president.” The failure of the United States Senate to remove Bill Clinton from office was a landmark defeat for the rule of law. Clinton himself didn’t merely survive impeachment; he has since thrived not in spite of it, but arguably because of it.

From that point forward, those whose stated agenda is to undermine this country’s essence knew that if they could only achieve sufficient power, they could probably get away with just about anything.

Meanwhile, over at Fannie Mae and Freddie Mac, Democratic Party cronies were already a half-dozen years into executing the first prong of their strategic offensive targeting the ruin of the housing industry, the financial sector, and ultimately the economy. Beginning in 1993, Fan and Fred systematically deceived the bond rating agencies and defrauded investors by seriously exaggerating the quality of the mortgage loans underlying their debt securities. Then, mere months after the Senate failed to carry out its constitutional duty with Mr. Clinton, Fannie Mae announced that it would begin serving as a conduit for loans to unqualified and undeserving borrowers. Fan and Fred, which followed a short time later, facilitated hundreds of billions of dollars in such risky loans.

Thus, in November 2008, assisted by the crisis Fan and Fred primarily created (which conveniently had come to a head just two months earlier), millions of dollars in unaccounted-for campaign contributions (many of them more than likely from foreign sources), an ineffective opponent, and a derelict Fourth Estate, Barack Obama won the presidency.

After only seventeen months in office, the rule of law, where it hasn’t been routed, hangs by a mere thread.

One of the earliest assaults came when the administration and its car czars took control of financially insolvent General Motors and Chrysler, and then orchestrated bankruptcy plans that deliberately shortchanged disfavored creditors to the benefit of the companies’ unions. Columnist Michael Barone characterized the campaign of intimidation against certain of Chrysler’s secured lenders as an “episode of Gangster Government.” Barone wrote that it was “likely to be part of a continuing series.”

Sadly, Barone has been vindicated in more ways than can be counted. The most visible, and most risible, is the $20 billion BP shakedown.

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80 Comments, 30 Threads, 3 Trackbacks

  1. I’ve been saying for some time that Barack Hussein Obama is a bad man with an evil agenda. I’ve been pooh-poohed approximately 99.9985% of the time. (More than coincidence?) At this point, the economic infrastructure of the country is almost wholly in his power. The Legacy Media are unwilling to report objectively on his Administration. He’s edging nearer to acquiring a “kill switch” for the Internet. The elections in November stand a fair chance of being rigged or set aside. The odds are rising against neutering our Gangster-In-Chief by any non-violent means.

    Pray. Unless a Twenty-First Century George Washington should arise, prayer is about all we have left.

    • Larry in the Silicon

      Looks more as if you may be right. The extortion of BP was an astounding act. Those on the Left have no capability of introspection. Things look pretty good from their perspective. The polarization as a result of the election and protective media cocoon around Obama, including the total blackout on anything that might suggest impeachable acts, may also be fatal. The hatred between philosophies and factions has probably reached the highest point since the Civil War.

  2. 2. Paladin

    Some day history will record that our current MSM was nothing more than an apendage of the DNC. Given that fact and our horrible educational system, we are pretty muched f..ked.

    • larsky

      Probably not. By then History will be re-written by loyal historians to then proclaim this the golden age when the U.S. of America was “fundamentally changed”,,,,,,, forever.

  3. 3. richtea

    When I branded Clinton as the most disastrous U.S. president since Carter, my anti-Bushie friends shook their heads in disbelief. Same must have applied to the American voters who, delighted with the exceedingly good times, had awarded him yet another term in office. Obama is but a natural successor, and the time has come to settle the huge Bill. Unless the nation pulls itself together, the rot will continue and may break the backbone of a great country.

  4. 4. alex

    The problem with this article is looking at only what DNC and Demos have done. GOP and Repubs have done the same in Defense industry, transferring trillions in Cash to Europe in 2006-2008, losing hundreds of Billions in Cash, etc, etc.

    All of US govt is a corrupt cesspool…when we acknowledge that its all bad and needs cleaning from the ground up, then maybe something will get accomplished.

    Otherwise, good article.

    • Polly

      You are certainly correct that most politicians are corrupt, some more, some less. Most are interested only in getting re-elected, and mostly so that they can continue to enrich themselves and their friends and family. (Add a certain urgency to the “getting re-elected” thing, due to the fact that most would be unable to attain, perform or hold a job in the private sector–because they have less intelligence than the average citizens and no skills, leaving lobbying their government friends as their only possible post-government employment.)

      However, it is not the defense budget that caused this crisis. It was the failure of thousands of bad mortgages (now described as “toxic”) that the Democrats FORCED lenders to make, then encouraged Fannie & Freddie to buy, mostly by lowering the standards of the mortgages they COULD buy. If you haven’t seen videos of Democrats deriding Republicans AND regulators in the early years of Bush II when Bush, Republicans, and the regulators recommended reining in Fannie & Freddie in order to prevent a financial meltdown, count yourself lucky. It made one’s blood boil at the time, makes one’s head want to explode now, as we hear The One & his Dem cohorts blame “deregulation by the Republicans” for the current financial crisis–especially since the MSM repeats their charges and too many voters hear only that charge, not the truth.

      Defense was, long, long ago, the largest percentage of our federal budget. The Constitution mandates that defense is the duty of the federal government. The defense budget may be wasteful, but at least it’s constitutionally justifiable. (Foreign aid, probably not.)

      Welfare, NOT delegated to the feds by the Constitution, overtook defense in the federal budget long ago. I first noticed it in the 1960s. And it has been destroying more families and lives than anything else the feds do ever since.

      The Republicans have not fought hard to rein in welfare spending but have allowed the Democrats to ratchet welfare spending–including “affordable housing for the poor”–higher and higher, virtually unchallenged, for decades.

      If Barack and his Dems can get millions of Hispanics, now essentially hardworking immigrants, addicted instead to “free stuff” and easy living, they can get themselves re-elected forever. Or until working, taxpaying Americans give up. Whichever comes first.

      • Jack

        The solution to the excesses of congress is to rescind the 17th ammendment. The founders set up Congress to be responsive to the states, not their overlord. Wilson pushed this with the other Progressive changes during WW1, a crisis not to be wasted.

    • Anthony Rose

      I didn’t see ‘Democrats’ as the villain fingered by the article. No, it’s quite clear, it’s mob rule, money rule, and the Republicans are not going to save us from it. On the contrary, they act as the good cop against the bad cop to foil us getting help.

      There is only one solution: throw the bums out on both sides of the aisle until we have people in there who won’t lie, cheat and steal everybody out of house and home.

      To do that we need web-sites which list politicians, their promises and their performance, their lies and their heroism; and we need to tell our friends to vote for their lives or they will likely never see a free and fair election again.

      Don’t vote a party label. Vote a truthful person.
      Don’t run over the cliff with the lemmings. Stand for truth, for liberty, for justice, or death.
      Don’t be bought with a ‘good’ deal. Get a real representative.
      Government BY the people.

      One more comment. We need to draw a line in the crumbling sand. I’d say the internet kill switch is that line. If Obama pulls that switch, he should know that he is pulling it for liberty.

  5. 5. eon

    And keep in mind that the root of that “one word” describes a demagogic leader who initially gains power by populist campaigning, resulting in being “crowned” by public acclaim. The Greeks knew their politics.

    There are a few other words that describe this regime’. “Corporatism” is not one of them. While several columnists, notably Michael Barone, use that term to describe the present excessively-close relationship between government and business, they forget that in a corporate state, the business leaders tell the government what to do. (Look up the British East India Company for an example.)

    What we have is a government which runs corporations, with no reference to the company’s requirements or indeed objective reality. The correct term for this is “syndicalist socialism”. To see prior examples of this, look up Italy under Benito “Benny the Moose” Mussolini. (Not to mention Germany under a certain ex-Austrian Army corporal about the same time.)

    It’s interesting to note that “Benny” lost his job when his own cabinet fired him, after seeing him destroy the Italian economy in a 22-year spree of financial insanity quite separate from his getting Italy into a war they couldn’t hope to win, on the side of an ally who didn’t like them much anyway. By comparison, The One has (with the help of a compliant Congress, news media, and academia) managed to do nearly as much damage to the U.S. economy in less than a tenth the amount of time.

    But at least we’ll probably avoid being in a war against a foreign enemy. The One is too busy trying to make friends with the enemies we have, while he alienates our friends overseas and makes “the moral equivalent of war” on what he regards as the real threat. Namely, any American who disagrees with him, on any subject.

    clear ether

    eon

    • dave in dallas

      The Romans called it ‘fascism’, because a ‘fascia’ was a bundle of reeds, roped together in alignment. It was one of the symbols of the power of the Empire, meaning ‘the people, all aligned in the same direction, are unbreakable’. A single reed, of course, aligned incorrectly, is easily snapped. The message is there. Line up, or be broken.

      And the message is completed with the other symbol of the emperor’s power– the axe. The power of life and death over citizens.

      “fascism” prevails when a state is made up of entities, corporations, groups and individuals, all voluntarily aligned, all doing what they either are told or believe are the wishes of the ruling class. GE sitting in the White House meetings along with Google is a GREAT indicator of fascism at work. GE is going to sell billions of $5 light bulbs because cheaper ones are being banned by government. GE is sitting in the policy meetings on this topic and many others which relate to its profitability. It is ‘self aligning’ with government. It will sacrifice some aspects of ‘good business’ to profit on others.

      This, of course, is what everyone accused the oil companies of doing for decades. It is probably a good argument, to a point. But the truth is, back then we had pro-America leadership ‘conspiring’ with energy companies to keep energy available and cheap for the sake of American business growth. Today’s Obama fascists are destroying America deliberately, and the ‘alignment’ of certain groups and businesses represents the abandonment of ‘the good of America’ in exchange for their OWN good, and to the detriment of almost everyone, eventually.

      I fear for this nation. We now have only one chance to save it. If we haven’t reversed most of this junk within a few years, it will drag us down into ‘utopia’.

      • M. Report

        The Fasces, not to be confused with feces :)
        is an ancient Roman symbol of the power of the State to punish.
        It consists of a bundle of rods bound around an ax; When a criminal was to be punished,
        the Fasces were unbound, and the criminal was beaten with the rods,
        or beheaded with the ax, depending on the seriousness of the crime.
        It is an honorable symbol which is used by the US government among others.

        http://en.wikipedia.org/wiki/Fascist_symbolism

        The Fylfot, or swastika, in contrast, is an ancient symbol of Good _or_ Evil
        depending on whether it is right or left handed.

        • Anonymous

          Wiki also gives you this about the fasces

          “Believed to date from Etruscan times, the symbolism of the fasces at one level suggested strength through unity. The bundle of rods bound together symbolizes the strength which a single rod lacks. The axe symbolized the state’s power and authority. The ribbons binding the rods together symbolized the state’s obligation to exercise restraint in the exercising of that power.”

          And so, through rods/reeds bundled together signifying strength through unity, we arrive at ‘fascism’. As I said. Put a single reed or rod going in the wrong direction and it is easily snapped. Including by the imperator himself if necessary, at which point he would untie the ribbons around the reeds and demonstrate that he was not going to remain restrained in his exercise of power over the trembling reeds.

          Axe for power of life or death over citizens. Bundled reeds to signify strength through alignment and unity. Fascism.

          Wiki can be a wild ride. I admit ‘fascia’ is more a medical term for ‘bundle of tendons’, i.e. the plantar fascia. But it also originates in the same idea.

        • dave in dallas

          oh, and I don’t know why you mentioned that it’s an ‘honorable symbol’, since I didn’t imply it wasn’t. My point was a historical reference to understand fascism, not to decry a particular image or symbol. Fascism is when everyone goes along with the leadership, whether it’s because they perceive it to be in their own interest or because they fear the consequences of NOT going along, or for any other reason. A good fascist dictator is one who gives EVERYONE a reason to get in line, carrots and sticks combined.

          • M. Report

            A good fascist dictator

            ‘A man hears what he wants to hear, and disregards the rest.’

            Etruria was an aristocratic kingdom ruled by men such as
            Tarquin the Proud, remembered as an exemplar of the
            Tall Poppy Syndrome: Secure power by killing rivals;
            Give them all the ax.

            Etruria was also the predecessor in power to Rome in the region.

            Rome, before it became an Empire, was a Republic, ruled by SPQR:
            Senatus Populusque Romanus = The Senate and the People of Rome.

            The Fasces and the Fylfot/Swastika have been dishonored recently
            by their association with two of the Axis Powers,the best known
            contemporary examples of good fascist dictatorships.

            The US may shift to an authoritarian administration out of necessity
            during the coming Hard Times. It does not need to be ‘saved’ by a
            totalitarian takeover which would remain in power only during the
            permanent state of emergency.

    • AD

      “…a certain ex-Austrian Army corporal…”
      He may have been Austrian, but he was an ex-German Army corporal.

  6. I don’t think it is as much of a gangster government as it is a huge, bloated, socialist bureaucracy that has been created, just like in Europe. Obama has never liked our government, let alone our Constitution, and was always bent on making us more like the European social-democratic welfare states. And now, with Greece, Spain, Portugal, Ireland, Italy, France, Britain, and possibly Germany too, all hanging financially by a thread, you can see how successful the Europeans have been with their “much-vaunted” social-welfare states. Problem is, they at least are starting to realize that they have a problem. Obama and the liberals only want to spend more money and God help you if you get in the way of their agenda. If you do, you will be crushed.

    November is coming and it’s time to stop this madness. Vote.

    • Eric R.

      Come on LS, do you think the Marxist gangsters in power now would be so foolish as to allow a fair election?

      They will get millions of ineligible, unregistered and illegal immigrants to the polls to make sure they retain control of Congress, and when the GOP tries to call them on it, their propagandists in the MFM will denounce anyone criticizing the result as a Nazi/KKK/earth-raping/racist scumbag. And the Democrats will then pass the Fairness Doctrine and hate speech laws to silence all opposition.

      Why do you think he was so supportive of Zelaya when he tried to rig Honduran elections and stay in power?

      The only way we are getting these Communist thugs out of power is if some brave general sends a line of Abrams tanks rolling down Pennsylvania Avenue.

  7. 7. Pragmatist

    I believe the DEEM’o'cratic Party have a new song.

    It goes like this:-

    To Deem the impossible Deem
    To fight the UN NAMEABLE Foe
    To go where the Messiah beckons
    And approves every lie that they sow

    This is my quest this is my motto
    To DEEM what I can and to hell with tomorrow

  8. 8. jojo

    What took you so long? I have seen comment after comment after comment for months and months from people who are not professional journalists, showbiz celebrities or politicians who saw this. Whose forum for their opinions is the derided by these gangsters “right-wing” internet outlets.

    People who cherish their American identity and are dismayed that so many of their countrymen so easily cede that identity, which many in the world continue to risk their lives to possess, for some pie in the sky promises from groups KNOWN to be Liars and thugs, Who have NEVER kept their promises. No matter that these are their elected Congressmen, Senators and Chief Executives. The evidence is there for anyone who cares to look at it without the distorting mirrors of the gangs and their pied pipers in print and TV media private and public, Hollywood,and the Politicians who call themselves with their t-shirts kick-ass Democrat/Liberal “elite”. Seduced/gulled by the sexiness of decadence brainwashed/educated into them by these “elite” for the past half – century.

    What the motives for the”liberals” are is anyone’s guess: control of the territory, the satisfaction of pushing other people around,membership in the most powerful and scariest gang on the block with its royal life styles and perks/dieu et mon droit/ droit de seigneur. But GANGS they are.

    Watch the TV Series The Wire to see dramatically encapsulated the story of the politics and the politicians in all the civic institutions of the USA in the past half century: Congress, Court, Chief Executive, Media and educational institutions. Based in Baltimore, the childhood home of Nancy Pelosi, and a “suburb” of the Washington Beltway. LOOK at what these elected Congressmen, and “servants” of the people, bound to UPHOLD and DEFEND the Constition of the US have done with their privileges AND DUTY of representing the people.

    This local story encapsulates, breathtakingly for sentient and interested people what has happened to that last great hope for mankind for which many people over the centuries, citizen soldiers, have spent their blood. See what the predators in the civic institutions have done with the blood and the treasury. of those citizen soldiers. And then decide whether you care enough to do something effective about this nightmare of the “dreams of OUR fathers”. November is a long time hence. The members of the Legislature are in the main lawyers. As such they can do untold damage in those months, and ALL of it Lawful. Lawyers know it is far easier to enact than to repeal laws.

    • Nobody

      Pretty well said except Carter was blasted, not by the black vote, but by a nation in his attempt at a second term. Hopefully, the country has awakened sufficiently to do BO and his lackeys in. Our biggest criminal, elitest gang has been inside the beltway for years and are now being run Chicago mob style. There are far too few honorable men in Washington currently to obviate the situation.

  9. 9. Guess What?

    America wanted this black sob, America got him!

    Why sum things up that way?

    From President Kennedy all the way through to the election of Barack Obama, every President won as a direct result of the power of the black votes. No exceptions, Democrats and Republicans both have and still do play the race game.

    How and why did Clinton get away with sexually abusing a woman the same age as his daughter in the Whitehouse oval office? Look no further than the absence of God from our nation; the same thing that has enabled rot gut behavior on the part of all of our Presidents and all of the members of Congress.

    Cowardice, envy, entitlement thinking, greed, laziness, lust, personal possessions, self gratification, lack of mental discipline and physical hygiene all super-infused into our society by Internationale Socialism to produce the out of control gangland monsters we have on our hands today.

    Next up, add in 40 or 50 million illegal Hispanic immigrants.

    It’s the good life don’t you know?
    America wanted it.
    America got it.

    What’s the problem?

  10. 10. Forgotten Man

    If I understand correctly almost 47% of all of the people filing income tax returns pay no taxes. If you add say 15 million illegal aliens to this number there is a very large voting block that wants free stuff from the people that do pay taxes. “Poor” people in the US have cars, cell phones cable TV in some cases money for illegal drugs and still get food stamps and Medicaid. I think this is where changes need to be made. Possible revisions could include no public housing for any convicted felon. No food stamps, public housing or medicaid if you fail a drug or alcohol test, tests should me mandatory after all if you have money for booze and drugs you should also have enough money to eat and house your self. I don’t think this infringes on anyone’s “rights” since if you don’t want to comply you don’t have to apply. These changes can be made on the State level if the State opts out of federal funds for these services. Side benefits of doing this might include lower prison cost and law enforcement , fewer public employees, and a nicer society in general.

    • CGW

      Forgotten Man:

      Your concern is shared by many people. But your prescription for fixing the problems is like grasping for a straw while the ship goes down.

      “These changes can be made on the State level if the State opts out of federal funds for these services. Side benefits of doing this might include lower prison cost and law enforcement , fewer public employees, and a nicer society in general.” That’s akin to the old canards, contact your representatives and remember, it’s for the children.

      The political ruling class includes most Governors, members reside in State Legislatures, and sit on plush chairs in endless and mostly useless appointed Boards and Commissions. They are the Main Stream Media and the bought and paid for spokesmen and women who daily polute television and the radio airwaves. They are not going away because you and I hope they will.

      Hope is a good thing if based in reality. But it can also be deadly when it is the only weapon We The People have to use in turning back the communist takeover of the United States of America.

      Many of the great writers at this website redefine the problems over and over in fine fashion. But unfortunately, beyond hope, there is a dearth of proposed solutions.

      • AD

        “…These changes can be made on the State level if the State opts out of federal funds for these services…”
        Except, fourteen years after the Welfare Reform Act, CA is yet to implement all, or even most, of the many changes mandated by this law whilst they continue to accept Federal funds for Welfare programs.

        • Melinda Romanoff

          FYI: In signing the stimulus bill, Obama signed the Welfare Reform Act’s repeal.

          No stopper in the bottle at all.

      • Forgotten Man

        You are correct that I am looking for solutions that don’t require a rope with a politician at the end of it. Any ideas??

  11. 11. tarheelgirl79

    “With the establishment press asleep…”

    Asleep? Not hardly! Complicit & alarmingly adroit at keeping any and all NEGATIVE reports of the Bamster’s highjacking of our constitutional rights at bay!

    Our new regime’s takeover can only truly thrive with the absolute loyalty of the MAIN STREET MEDIA!

  12. 12. Ruebacca

    The democratic voter wants 3 things.

    Sodomy, Abortion and Entitlements.

    We need to fight them, not get along but fight. Elect people to fight them and dismantlement the Entitlements that fuel our foes. Our taxes pay for the people stomping on us. ACORN, SEIU and all the welfare handed to the illegals.

    First we need to purge statists from the republican party. We must cast out the beam in our own eye before we can address the speck in or brothers.

    • Polly

      Unfortunately, sodomy and abortion are the least of our problems right now. I would gladly set those aside for later consideration if we would concentrate NOW on bringing back some semblance of the free enterprise system that made our poor population richer than the middle class of other, more socialist (or communist) countries and made America the strongest nation in the world.

      • myth buster

        Then you’re a fool, because the fiscal crisis is, at its core, a moral crisis. When society denies that there are consequences for immorality, it brings curses upon itself. From whence does this entitlement mentality come? Is it not envy? Is it not the desire to have freedom without responsibility? And would not the over fifty million children slaughtered on the alter of this licentiousness gone a long way toward picking up the tab for our economic burdens?

        • Polly

          They might have. Or, given that every one of them was unwanted, they might have turned into misfits and gangsters, Democrats all, so that Obama & his Dems wouldn’t even NEED legalized illegal immigrants to keep voting them into power.

      • Kathy from Kansas

        Polly, abortion has everything to do with our financial and social problems. The only thing that enables one-third of all the babies in America to be intentionally killed before birth is massive DENIAL. You can only kill a baby if you tell yourself that it’s not really killing a baby. You tell yourself a LIE. That’s what “denial” is. When an entire country gets in the HABIT of denial, the habit of believing lies, it quickly spreads to every area of life. We tell ourselves, for example, that terrorists are not really terrorists, and so we really don’t need to commit ourselves to defeating them. We convince ourselves that unsustainable debt isn’t really debt, and so we don’t need to worry about the debts ever coming due. We buy the lies of “political correctness,” whose ultimate consequences are personal and national self-destruction.

        If we can believe a lie so enormous as the lie that it is okay to murder one’s own child, we will believe ANYTHING. And that makes us pretty easy targets for those like Barack Obama who specialize in fooling people.

  13. 13. Bob Miller

    The start of this gangsterism and the continuing reason for it is the dumbing down of American citizens due to:
    1. Socialist media
    2. Socialist educators
    3. Citzens willing to be bribed with government goodies extracted from other citizens. The bribes make them ignore the gangsterism.

    All the salient facts about Obama and his associates were knowable before his election, but the majority of voters pushed these inconvenient facts aside.

    • Polly

      Yes, and the “Loyal Opposition”–in this case, John McCain–thought it rude to mention anything about Obama’s past or belief system in any of the millions of dollars worth of political ads run during the presidential campaign. In fact, McCain scolded anyone who mentioned anything negative about Obama, even including his middle name! It was McCain’s responsibility to inform the voters. He failed. On purpose. One more reason why he should be defeated in Arizona’s primary election.

    • Noesis Noeseos

      Number 3 is the deepest problem, and it has persisted for at least 70 years. A great number of citizens want at least one kind of “goodie” and so are compromised into accepting others that they might otherwise reject.

      Indeed, gangs of self-serving thugs have replaced true patriots throughout most of the federal and state governments, but we all must look to our own complicities if we want to restore a free republic. Most readers of PJM rightly reject Obamacare and government guarantees of housing loans, but how many of us would be willing to rein in if not eliminate Medicare and Social Security? These have been in place for a long time, and they seem to have advanced from privileges to rights; but Social Security started the whole ball rolling down the slippery slope.

      Most people have arrived at the conviction that government intervention has gone too far, but they still insist on some degree of support. Perhaps some width of “safety net” is unavoidable, even salutary; but once the web starts spinning, who can say objectively, “This is enough.”? Gangsters thrive on such needy indecision.

      • Any current Federal safety net is illegal and unconstitutional. (Along with many other current Federal programs.) If most people are convinced there *really* needs to be a *Federal* (as opposed to State) “safety net”, then they need to pass an Amendment. A good gentle way to introduce this at dinner (I know, no politics or religion at the table – but this is really non-threatening) is to ask, “What Federal programs do you think need to be authorized by constitutional amendment?” (I would vote for a civilian NASA and basic research.)

        • Noesis Noeseos

          I agree with you. If the overwhelming majority have concluded that (at least certain aspects of) a modern welfare state should be beneficial, the proper way to organize it would be to pass a constitutional amendment. Personally I would oppose such an amendment, but I can understand that my reservations might stand outside the electoral majority.

          The double affront, however, is that most of the components of the modern welfare state (on the federal level) have come not by amendment but by arbitrary and bizarre opinions imagined by certain factions on the federal Supreme Court. The first affront is the attack on traditional American notions of self-reliance. The second is that they have been established through vastly debauched notions of constitutional law.

      • MarkTheGreat

        There already exists a social safety net. It’s called family, friends, neighbors, church, etc.

  14. 14. johnt

    Criminal, to be sure. And liberals[?] of all sorts, from all demographics, love it. The Chief Filth in the WH has accomplished one thing, he has gotten all the Little Filth out of the closet, and led them to expose themselves for the debased creatures they are, no morals, just power lust and their religion of Government.
    The media is keeping it’s fingers crossed and hoping the Chief Filth can destroy America before things collapse on him and his scummy cohorts.

  15. 15. Duerf

    Americans got/get exactly what they vote/voted for; what is your beef?

    Europeons wanted Islime, so they imported honor killing!

    It is not the “Maim Stream Media’s” fault, not Bush, Nor Obama, Not Cliton, Not Nixon;

    The American voter got what he voted for. What is your beef?

    The American voter knows nothing of cellulose ethanol and if he does its canards like “BTU thang”.

    The American voter can not even see the biggest story in the history of the USA that are clear and undisputable in the known facts of the current oil spill. Butt the American voter knows about “Idol”, and which sports team won!
    and whats on TV tonight!; the current cost of a “keg”!

  16. 16. arnold schwertman

    Ok if it fell below your notice we had 8 year of George bush who could have corrected the fanny and Freddy mess before it turned super critical. and caused the economy to clasp on us and it was George that started the bail outs. if President Obama hadn’t of bailed out the auto makers there would have been 10s of thousands more unemployed workers and the whole Economy might have imploded on us. where all of our investment for retirement would have been gone and if you want to blame some one Blame senator Phil Gram the Republican
    from Texas who wrote a bill that allowed the merger of small banks into larger banks. witch helped cause some of this problem. and the stupid president that either didn’t know or care that our economy was about to colasp and did nothing to fix it started 2 wars and took away our rights ans American too. he was an evil man! watch these 2 videoshttp://www.youtube.com/watch?v=BYDw1iWnVms and this one too http://www.youtube.com/watch?v=n8BqvJO5t4k

    • steve4libertyinsc

      Bush wasnt evil…joever he wasnt a good either. he created a bigger gov.

      however, he and his administration trying to change fan/fred but the Dem congress blocked any and all attempts. So we need to blame both sides.

    • Forgotten Man

      Just after GW got into office he tried to trade spit with Teddy the last dead Kennedy and things went down hill from there. GW did a lot of things that I think were a mistake and he played Christian with out money and not his own money, but he did not try and ” fundamentally change America” as Obama is attempting to change it. The difference as I see it is that GWB was attempting to take care of the USA and made some mistakes while BHO wants to make a socialist heaven in the USA for the benifit of the rest of the world.

    • dave in dallas

      Bush worked like crazy to bring sense and rules and accountability to Fannie/Freddie. Those two cash cows were protected by Frank, Dodd and the entire Congressional Black Caucus, who claimed it was racism to oppose them, that fannie/freddie were sound, that regulators were a lynch mob after Franklin Raines because he was black, etc etc yada yada.

      Bush gave up, as he was stiffarmed every day by democrats protecting their cash cow. And sure enough, it all came apart, but not before Raines had fiddled the books to get the profits above (by one penny) the bonus line… Raines took MILLIONS in bonuses, as did others, Jamie Gorelick among them… even the wife of white house reporter David Gregory was a high paid law official at fannie mae, getting bonuses like all the other crooks.. they robbed taxpayers BLIND on that, and they are responsible for collapses all over the world because they LIED about the quality of the mortgage loans that were bundled and sold all over the world as GOOD INVESTMENTS.

      Barney Frank admits he used fannie/freddie as backdoor socialism, to get poor (i.e. black) americans into homes so they can have the american dream. They arranged to buy loans from local banks as soon as they were made, so the lender never had to take the risk. They made loans, generated fees, and sold the paper to fannie/freddie. is it any wonder loans were going to people who could never pay them back? The more loans made, the more banks made more money! Lending with NO LOSSES!!! Christmas every day! Except for the taxpayers, of course.

      Democrats did this. Socialist democrats, corrupt democrats. They destroyed our economy and our housing market, and are pleased with themselves for what they’ve done, and want to do it MORE.

    • MarkTheGreat

      Bush tried to deal with Fanny and Freddy. Democrats in the Senate killed the attempt through the use of the fillibuster.

  17. 17. BG58

    Whenever I talk politics with true libs, I ask them to explain why 98% of Dems at every level avoid admitting they’re liberals. Yet, conservatives proudly volunteer they are what they are. If there’s not a lesson there, then there’s no hope for us.

  18. 18. Robb

    Excellent article. But what *is* the Obama agenda? As I said elsewhere, the recent arrest of Russian agents suggests that it should be considered a very serious possibility that “a man who was born of communists, raised by communist grandparents, mentored by a communist who was under the direct influence of the KGB, and who has associated extensively his entire adult life with communists, has potentially been directly under the control of the Russian SVR, and helped, promoted and financed to gain the highest possible office in the United States”, where he could have the greatest destructive effect on the U.S., in terms of economy, policy and theft of American secrets (which can be accomplished “legally” by simply declassifying documents, as Bill Clinton and his minions did — another long story).

    Not a certainty, but a definite possibility that any rational police or intelligence agency would investigate if Obama were anyone other than the President. Circumstantially, the evidence of potential SVR (KGB) association is enormous, and far beyond what I’m listing here. Before the election I didn’t think it a possibility. Now I’d give it 75% odds, at least, when you gather up the sum total of the evidence, which is much deeper than that brief list above, and which includes a knowledge of how the KGB long operated. (for some insight, see this interview with a former KGB agent, http://robbservations.blogspot.com/2009/12/how-to-brainwash-nation.html ).

    In the absence of hard evidence, keep your eye on key “policy” issues important to the Russians, like… nuclear and conventional disarmament (see http://robbservations.blogspot.com/2009/04/next-phase-in-obamas-rush-towards.html) or Cap and Trade (which will cripple the Western economies). And keep your eye on what happens to those arrested Russian agents. Don’t be surprised if they cases get dropped like “Panthergate”.

    I could include the ending of the ABM deployment, which was definitely an SVR / KGB goal, but it is now effectively dead. I could include the Health Care Nationalization Act, but it has already passed (it was never primarily about health care — see http://robbservations.blogspot.com/2009/09/real-meaning-of-health-care-reform.html or http://robbservations.blogspot.com/2009/11/rodents-of-unusual-size.html).

    What we really need now is the Obama equivalent of “Pantergate” — someone to expose the emails, voicemails, etc that reveal the real Obama and his agenda.

  19. Excellent column.
    I have posted many times what I am going to write here once again:
    at the far left of the left there is a school of thought (so to say…) that is called “autonomous marxism”.
    One of its main “thinkers” is the Italian Antonio Negri (who spent some time in jail for allegedly being the chief or one of the chiefs of the Red Brigades). His books are published in America by a leading University Press before they get published in Italy.
    The strategy planned by these guys is called
    “CHANGING THE MATERIAL CONSTITUTION OF THE COUNTRY”
    That means: the subversives being a tiny minority, they cannot hope to change the POLITICAL Constitution, therefore they direct their action toward the subversion of the economic structure of Freedom.
    This is what is happening in America today.
    What we are watching today is the slow motion of a complete revolution.
    It does not matter if this administration is doing what it is doing in compliance with a preestablished plan (a conspiracy) or not, what matters is that the Country is losing its economic Freedom. Political Freedom will follow, in even slower steps.
    Our politicians do not know anything about subversion, they are not reacting in the right way.
    The elections in November must be a colossal victory for Freedom or we will be in deep troubles.

  20. 20. Lefty

    There is truth based on facts, opinion and outright speculative fiction.

    What I hate most about these types of articles is that it is the same rant on the right scapegoating the poor for all our problems. No where in this article is there any mention of who was making money hand over fist in this market.

    If you only look at the sudden influx of television shows “Flip this House”, “Flip that House”, “The real estate pros”, there was a demand for entertainment that educated average consumers in how to become real estate speculators. Cheap interest rates greased the wheels for homeowners to assume there would always be an ample supply of buyers to ensure “their” property wouldn’t be underwater.

    Like any other bubble, this one involved greed and the rediscovery of leverage as a means of making profit. What has been written here is little more than a conspiracy theory. Democrats and liberals plotting to destroy the real estate market? If that’s the case, what of the Republicans like Bush who happily touted the rise of home ownership under his administration.

    The narrative put forth here leaves out the downfall of the banks themselves and moreover the Mortgage companies like Countrywide Financial, Ameriquest and New Century Financial. Companies like these wrote the majority of subprime loans but were largely unregulated and invented products like the NINJA loan where lenders could qualify for a mortgage without even verifying their salary.

    Higher up you have Investment Banks that packaged these mortgages into financial vehicles that suddenly were AAA rated by Standard and Poor and Moody’s who received money from the investment banks themselves for their services.

    But no one here is interested in the truth, because they don’t fit the conspiracy theory that it’s the Democrats and liberals fault. They’re all thugs and gangsters trying to destroy the country.

    Never let the facts get in the way of a good story I guess.

    • Gary Kane

      Please research the Community Reinvestment Act.

      • Lefty

        Here are some facts.

        Estimates are about 50% of the subprime loans originated from mortgage service companies I mentioned, Countrywide, Ameriquest et al who were unsupervised and had nothing to do with CRA. Another 30% were made by bank affiliates who again were not required to comply with CRA.

        Of the remaining loans, yes there were subprime loans made by institutions who needed to comply with CRA. However, this is clearly a minority of the loans and a good many of these loans carried lower rates and greater supervision under CRA guidelines.

    • Gary Kane

      “…the same rant on the right scapegoating the poor for all our problems.”

      By all means, let’s scapegoat the “rich” instead, as it’s a much more convenient narrative to grasp, right?

      Poor = virtuous and morally upstanding
      Rich = greedy and malevolent

      Yes, that simplistic paradigm is a much healthier diet to feed to those imbued with the Politics of Envy — works every time in recruiting the lower class into supporting redistributionist public policies of the Left.

      • Lefty

        While it’s noble of you to take up the plight of the rich man, your reversal doesn’t really address the point that I made about responsibility.

        What is annoying is the utter hypocrisy of how personal responsibility is given such lip service when the right talks about those who took out subprime loans when compared to the corporations who simply dried up like the wind after the damage was done.

        Do I vilify rich people in general? No. Do I think people like former Countrywide executive Anthony Mozillo are the scum of the earth? Absolutely. Do I think that Standard and Poor and Moodys should be called to account for rubber stamping AAA ratings? Certainly. Do I question the sweetheart deal Goldmann Sachs received being paid 100 cents on the dollar for toxic assets that everyone knew were worthless? Of course.

        But all you guys want to hear is that liberals and democrats are responsible and poor people are to blame. End of story, “La la la, I’m not listening”.

        • Polly

          Hey, I don’t blame the poor people who couldn’t afford to pay their rent for buying homes with 110% financing (borrow $50,000, lender gives you $55,000 and the keys to a house). They’ve been conditioned for years to believe that they deserve all the “stuff” the people who work hard have, now including their own homes.

          But do you think it’s right that the group who REFUSED to regulate/rein in Fannie & Freddie (and you do know they are NOT included in the current “financial reform” bill, don’t you; “It’s too complicated, we’ll do it later,” the Dems assure us) to blame “deregulation by the Republicans” for the current mess?

          • Lefty

            Wow, so poor people don’t work hard. Pretty harsh there Polly.

            While you’re on the subject of entitlement, I know someone who covers CEO’s and compensation. Over the past decade or so she described how when compensation was discussed. They would trot out a bunch of “experts” who explained that their CEO needed to be competitive with CEO A, B and C. If A had a private jet, the our CEO needs a private jet. If B had an unlimited apparel budget the same for the current CEO. Of course shareholders foot the bill rather than taxpayers.

            The point is they deserved all the “stuff” regardless of performance simply on the basis that their compensation needed to be competitive. So entitlement isn’t just for the poor.

            Anyway I don’t feel like defending all poor people. Poverty, ignorance, anti-intellectualism – low income areas are rife with people who can afford the latest video game but send their kids to school without a pencil, pen or paper. Families that need to be told not to give your kid the super-sized value meal to appease their children because their kid is headed for type II diabetes.

            Where you’re off base is that it’s not the section 8 person on public assistance who gets a subprime loan. You have to realize that a significant portion of these loans were made to people who were steered into subprime products when they actually qualified for prime loans.

            Moreover, few people enter into a mortgage agreement with the intent of immediately defaulting. These are usually sob stories that can last for hours and sometimes you don’t know if they were gaming the system or not, but what is evident is that there were a bunch of people from companies ready to do business.

            Anyway, to answer your question about whether deregulation is to blame, and specifically Republicans. You know, this thing really got out of hand under the Bush administration. I’d say you can trace it back to Glass Steagal which was under Clinton. But really, no-one bothered to watch over the companies and I think Greenspan was telling the truth when he said that his only mistake was assuming that the market would take care of fraud on its own.

            Basically, Wall Street doesn’t answer to the President. It’s the goose that lays the golden egg. Neither the Republicans nor than Democrats want to disturb it which is why McCain reform would look pretty much like Obama’s. It’s the same advisors calling the shots.

          • Polly

            Lefty, I know of no one who worked hard in grade school, high school and college, and possibly post-graduate too, and who avoided getting pregnant out-of-wedlock, then sought a job who is now “poor.”

            As to poor Greenspan thinking the market would take care of itself, it’s hard to believe he didn’t see the forces acting to corrupt the “free” market. Maybe he was right to retire.

            I always thought that America was so strong that no president could destroy her. I hadn’t counted on Barack Obama and an unstoppable majority of Democrats in Congress, let alone an MSM that would cheer them on and cover up their corruption. I think this president and this Congress CAN destroy us, whether it’s their ignorance or their plan, and it doesn’t much matter which it is.

            Nancy Pelosi oozed, “We have to pass the health care bill to find out what’s in it.” Too bad she, as well as a few others in Congress, didn’t think to read and/or study the thing. But it was too big, too complicated; which legislator explained, “I could read it but I’d need a lawyer to understand it”? Yeah, that’s the way to legislate, that’s what we pay you the big bucks for, that’s why we give you Cadillac health care for the rest of your life–so you can have someone else put together a bill then vote for it. Wow, you’ve earned your money and your perks! Disgusting.

          • Lefty

            So poor people don’t work hard and they’re also poor because they’re sexually promiscuous. Way to bring back Reagan’s “Welfare Queen”.

            Look, I’ve just explained to you how the majority of subprime loans had zero, nil, no connection to the community reinvestment act. Didn’t happen. The numbers do not add up. Yet you still have an unshakable belief that it’s all part of a liberal conspiracy to undermine the country.

            How could we let them undermine the free market? Lady, we just went through “Free Market Corporations Gone Wild!” Mortgage companies self certifying borrowers, mortgage brokers paying commissions that created incentives to stretch borrowers limits. Unregulated Credit Default Swaps ballooning in volume from hundreds of billions to over 60 Trillion dollars.

            I can’t say if regulation would have stopped the bubble, but if someone had at least taken an interest or tried to reign in banks from leveraging their positions to capture every last dollar possible before the house of cards collapsed. The “Greed is Good” side of free markets didn’t really work out in the end.

            I don’t know, from your diatribe about healthcare which I frankly don’t have the time nor inclination to get into you’re just too stuck on the idea that it’s all the fault of the poor. Good luck and God bless I guess.

    • Read the material linked to in the article.
      Freddy and Fannie have been the TWO TO FIVE TRILLION DOLLARS coup that destroyed the financial sector.
      TWO TO FIVE TRILLION DOLLARS.
      All mismanaged for the proletarian revolution by your commie masters.

      Keep blathering.
      And wait for the truth to be understood by all, then you will really enjoy CHANGE !

    • Noesis Noeseos

      Well, some bankers do share in the blame. When the leftist thugs from Greenline in Berkeley and ACORN in Chicago threatened lawsuits, boycotts, and vandalism if loans were withheld from the financially unreliable, the “suits” did not stand up for their rights or make the rabble pay the price for trespassing. They found a different way to see that the crisis did not go to waste.

      It may discomfort you, Lefty, but real truth is not as simple as you would have us believe.

      • Lefty

        The problem with trying to pin the blame on ACORN is that the group was on the forefront of voicing concerns about subprime lenders in 2001 and onward.

        By that time the older institutions that had to comply with CRA were being outpaced by unregulated mortgage lenders who were pushing subprime loans.

        ACORN advocated strongly for CRA to extend lending to low income communities, but they also clearly identified a problem with lenders such as Countrywide and Ameriquest and tried to curb predatory lending in their areas.

        I don’t expect anyone here to get warm and fuzzy about ACORN, but what can’t be disputed is the numerous studies and suits launched by the group to combat what they viewed as unwanted and dangerous subprime and equity lending detrimental to building up low income areas.

        • Noesis Noeseos

          ACORN’s “voicing concern” was not as tame as you make it out to be.

          • Perhaps our kapo wanna-be Lefty can explain the Cloward-Piven strategy and its relationship to ACORN and its founders and the Democrats’ role in pushing the CRA into territory it was never meant to serve – initially. Notice how Lefty sidesteps and never directly answers any of the quesitons posed to him (I assume that it’s a him) nor does he directly address any of the issues presented to him. It’s because none of these are arguments that he can win.

            by the by, Lefty – most of us have read Alinsky’s book and we know damn well who Antonio Gramsci is. You’re going to have to do better than this if you wish to discuss matters of import with adults.

        • Noesis Noeseos

          Oh, by all means, the prime responsibility of bankers in risking their depositors moneys is to dedicate themselves to “building up low income areas.” And if they fail, “we are who we have been waiting for” will set them straight, no, comrade?

    • MarkTheGreat

      The only “house flipping” shows that I have ever seen involve people who buy run down houses, remodel them extensively, and then resell them.

      Like most liberals, you are eager to excuse the guilty in order to blame people with money.

      • Lefty

        The shows are sort of analogous to the Wall Street investor who fled the market after his shoe shine boy gave him a stock tip.

        Speculators are necessary, but during this bubble period you’ve got the tail wagging the dog. When everyone is a speculator you’re just selling tulips. It’s capitalism, but it does run against the interest of people who need to consume a good in that they need somewhere to live.

        So anyway, the whole idea that your profit was generated by the business acumen of the speculator was skewed. People were making money not necessarily because of the improvements made to a property, but because it was a bubble market and cheap credit let people leverage themselves to incredible extents because after 8 or so years of home prices more than doubling “conventional wisdom” began to foster fears of being “priced out” of the market.

        The market rewarded speculators by providing interest only loans and products that decreased costs to short term buyers. When average neighborhoods start becoming unaffordable to Americans, they turned more risky products or leveraged themselves out more.

        At this point we’re not really talking about the poor, but average middle income households. It’s not just poor neighborhoods with underwater properties. Subprime came and went and if that’s all there was to it, we wouldn’t see the same economic tsunami.

        Oh, and just saying I hate rich people is pretty clueless comment unless you’re part of the tin foil hat brigade.

  21. 21. Dexter60

    The article lays out the ugly story quite cleanly and nicely, we have beeen swept along by a crowd of bipolar deviates — who care what they for a moment call The Prize, it will change with their next challnge.
    White-hat robbers, black-hat robbers; difference without distinction.
    We need not wait much longer to find out wwho has the biggest gun.
    The crush of necessity will bring all to the point of an even more painful reality: our government now cannot be trusted for anything. That it must be realized fully and then acted upon — they have no more power than what we give to them.
    If they cannot hear us, they must then feel the pain themselves as well.
    Life is not a narrative of yesterdays News, it makes tomorrows news.
    Do something and have a nice day, a lesson from yesterday.

  22. 22. joan

    Does it not seem that Obama hates you, me, and every other red-blooded American in this country? How many stories of tyrannical usurpation do you have to read before you realize he wants our destruction? Which one will finally convince you? How about the story today about Obama telling our NASA director his main goal will now be to make the Muslims of the world feel good?

  23. 23. 68Truthseeker

    Robert Gibbs Is Asked About Obama’s Connecticut Social Security Number
    http://www.youtube.com/watch?v=U8Aahw3NT6E
    Obama’s Social Security Number(s) – Jerome Corsi on the Jeff Kuhner Show – 5/18/10
    http://www.youtube.com/watch?v=dRt64dO0opE&playnext_from=TL&videos=40nsx4e7eKM

  24. 24. james

    WE ARE OBAMA;YOU WILL BE CONSOLIDATED.RESISTANCE’ IS FUTILE.OBAMA IS THE BORG OF STAR TREK LURE.

  25. 25. Gould's Ghost

    Idiocy.

  26. The common thread running through virtually all the above comments is that our Republic can be salvaged through reason and suffrage. I have spent the last year researching the “Perfect Storm” that is Obama. My conclusion is that “It’s Over” if we look for salvation in only traditional means to right our ship of state. I am financially secure and did not write my 432 page book “It’s Over” to make money. Go to by website its-over.info and just read my prologue without buying the book and it will give you an idea of what we are up against and what’s coming. You can forget the 2010 elections and Tea Parties. Tyranny is coming and transitions from democracy to totalitarianism have never ocurred without demicide. At 66 years old my impetus for writing was not that my grandchildren would have to ever repay our debt but whether they would become serfs or worse. I still pray that enough Americans awaken but I think not.

    • Larry in the Silicon

      I think you’re right. Corporatism, state control and Big Brother are well-represented in both parties. The group within the Repub Party that represents another way is a small, outcast group. Fox News and the rest are with Big Government, when it comes down to it. The press is not free, inquiry is not open, and true freedom-oriented dissenters are lumped in with ‘tin-foil hats.’ The American future is not bright.

    • As a long-time student of history and human nature, I stronly suspect that you are correct. I have a work in progress, “Killers Without Conscience.” Began as an essay you can read here, but it is turning into a book. It has been said that some discoveries proceed based upon what it NOT there, much like looking for sonar ‘holes’ in the ocean that may point to a stealthed submarine. I believe that I may have found such a ‘hole’ – a hole of silence regarding the role that the Nietszchean ‘will to power’ plays in the evils of our modern times. Author after author either looks straight at it or dances around it without saying a word.

      None of this would mean much if it werent for that fact that I believe that time after time, we ascribe the wrong motives to our opponents and so completely fail to understand just what exactly it is that they have in mind for us: millions of us dead and the rest of us in chains. It’s all too easy to dismiss this as hyperbole or tinfoil hattery. But history makes my case. We are ruled by monsters now.

      I will purchase your book; look forward to reading it.

  27. 27. Charles OConnell

    Interpolate two interesting books: 1) “Tragedy & Hope” by Carroll Quigley, Bill Clinton’s favorite Georgetown professor. 2) “The Plot to Seize the White House” by Jules Archer. To coin a phrase: “Definition of Fascism: The political manifestation of the period of economic history known as Monopoly Captialism.” If you were a sausage maker in Germany between 1910 and 1939, you would either join the Sausage Cartel or you’d be shut down. (The monstrous chemical cartel, IG Farben, “the Devil’s Chemists” who ran Auschwitz as a gasoline factory and just killed Jews as a sideline, arguably pushed for WWII after failing by 6 months to synthesize gasoline from coal, thus dooming the Axis in WWI. Farben was looking for the leader who became Hitler by the early 1920s, just as the Democrats’ “Democracy Alliance” of 3 billionaires and 60 millionaires were looking for the candidate – anyone but Hillary – who became Obama by 2006.) What we have today fits more and more, the technical definition of fascism. It is just clothed in multi-culturalism.

  28. Your observations about our Government are, unfortunately, right on.
    However, I think you missed an area that also needs to be discussed. The role of the SEC and FINRA in the Madoff fraud. The negligence exhibited by these watch dog agencies is astounding. The fact that they allowed the fraud to continue for an additional 17 years after they had the opportunity to stop it is indicative of a systemic failure that can bring our economic markets to its knees.
    In fact, they had at least 6 opportunities to find the fraud. Did they look the other way, or are they the keystone cops of Wall Street?
    The cloud that surrounds the SEC actions (or inactions) is not the only issue affecting Madoff, and in turn, all investors.
    SIPC was created to protect investors and the actions of this organization has been solely to protect its broker/dealer members. The Trustee, Irving Picard has unilaterally redefined a federal statute and robbed thousands of victims of the money they are entitled to. This goes on while the SEC, who has oversight responsibility, looks on.
    The roles of the SEC/SIPC/FINRA in the Madoff fraud should scream to all investors that their money is NOT SAFE in the American Stock Market.
    I hope will see fit to write on this topic in the near future.
    Thank you,

    Ronnie Sue Ambrosino
    Coordinator
    Madoff Victims Coalition

    • Ayn Rand once said, “Contradictions do not exist. Whenever you think you are facing a contradiction, check your premises. You will find that one of them is wrong.” In this case, the only premise that makes sense is that the SEC and other oversight agencies deliberately ignored the evidence handed to them on a silver platter. The question then becomes, “To what end?”

      The answer to that question pops into perspective if we take a look at the outcomes of Madoff’s crimes. In brief, the damage he did went far beyond the theft of peoples’ life savings. First of all, he did enormous damage to a number of charitable, cultural and civic organizations, deeply imparing their ability to function. Second – and I believe that this was the primary goal – to damagedthe fundamental trust that people held in common.

      Let’s take a look at the notion of trust from Francis Fukuyama’s point of view. There is much that one can dispute about Fukuyama’s analysis of trust, but if we look at the what Madoff actually did, he broke down the degree of trust necessary for what Fukuyama characterized as a ‘high-trust’ society. According to Fukuyama, a high trust society permitted the development of modern capitalist structures. Virtually every transaction we make depends upon the trust that we hold in common that our contracts will be honored, from the simple handshake to the most complex of legal agreements. Undermine that trust and you get.. what? Chaos? Lawlessness? Sure, Fukuyama’s a stopped clock who’s right twice a day. And he is right in this case.

      And then the question becomes, “Qui bono?” The answer will be found on the Gramsci-Alinsky axis. The destruction of trust, the pervasive corruption that many now almost dismiss with a shrug – it’s part of the sceond phase of Gramsci’s method what he termed “destabilization”. Again, qui bono?.

      The question that should haunt us all is, “then what?” No one seems to want to answer that one, much less think about it. For it requires you to think the unthinkable, doesn’t it?

  29. 29. bojo

    when you consider, historicaly, the constellstion of factors that repeatedly emerge as precipitants to the decline of the worlds great civilizations we appear to be on course to be the next lost. corruption is the common denominator but interminable war, debt,invasion, loss of core national identity also recur. what emerges next is anybody’s guess including obamas.

  30. 30. Benson

    There would be no Democrat, liberal, progressive socialist party without,
    sexism, homophobia, racism, multiculturalism and political correctness. Liberal socialists would never have a chance of attaining any political office if they didn’t lie and divide people. Their true agenda is always hidden under false names of helping one group or another and lying about the outcome of this so called help. It is not a mystery that there are no accomplishments put forward by the left that have actually helped anyone. The so called mystery isn’t even hidden from anyone who cares to look for themselves instead of being told what to think by others.

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