Monday, April 05, 2010

Book-keeping scam

A FEW weeks ago, two Republican House members asked Ben Bernanke, the chairman of the Federal Reserve, whether the Fed knew — before Lehman’s bankruptcy examiner revealed it — about the bookkeeping scam at Lehman known as “Repo 105.”

Well, the truth is this: The collapse of Enron back in 2001 revealed that the biggest financial institutions, here and abroad,were busy creating products whose sole purpose was to help companies magically transform their debt into capital or revenue ...

http://www.nytimes.com/2010/04/04/opinion/04koniak.html?pagewanted=all
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6 comments:

Anonymous said...

That's called financial innovation, financial engineering or re-engineering, creative accounting, free market forces.

The truth is that "free market forces" is an euphemism to allow self-interest, greed and human base desires to rule, at most within and stretching the fine letter of the laws.

Human beings are naturally selfish and self-centred. Ironically, this is one of the traits that ensured survival and progress of the human species.

Very few humans will want to change the existing environment, if the status quo is providing them with good employment, good salaries, nice homes, nice environment for their children, and giving them middle or upper class lifestyle. Even though the existing environment may be detrimental to 30% to 40% of the wider population.

Hence there needs to be a balanced and controlled (to some extent) environment. Govt and authorities are supposed to provide this balancing hand. Sometimes it breaks down. Most importantly is how the problems are tackled. Are they simply ignored, swept aside and given the spin that everything is OK and good for you? Or if the issues are brought out in the open and addressed honestly by both govt and people?

April 05, 2010 9:39 AM
jamesneo said...

Bernanke is in league with the financial terrorist of Goldman Sachs and J. P. Morgan according to analysts such as Bob Chapman, Gerald Celente and Max keiser. For other prominent economists such as Jim Rogers and Marc Faber they are more kind to him and called him a total incompetent economist.

This might sound like conspiracy but there are even reports that Bernanke is in league with J. P. Morgan and HSBC in manipulating the gold market. A recent whistleblower Andrew Maguire has told GATA about the manipulation which he reported to the CFTC which did nothing. (http://www.gata.org/node/8483)

April 05, 2010 11:23 AM
CJ said...

"If you cannot convince them, confuse them"

This is what some peoples are doing.

April 05, 2010 1:53 PM
Anonymous said...

I agree with the first poster April 05, 2010 9:39 AM.

Free markets, capitalism, meritocracy, are basically excuses for the rich and powerful elites to abuse and exploit the masses.

Bypass all the whatever complex instruments they come out with. To me a sure fire way to check whether there is abuse and exploitation is simple:

if the top earners is getting more than 10 times the income of the bottom earners, there is very high likelihood of abuse and exploitation somewhere.

April 05, 2010 9:28 PM
Joe said...

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April 07, 2010 4:58 PM
Scotty said...

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April 16, 2010 4:59 PM

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