Ted Kaufman's Friday Hearing Explains Everything That Is Broken With The US Financial System

Tyler Durden's picture

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Oh regional Indian's picture

Yup. 2 and a half years in plan view and about....1913 to now...say close to 98 years in hidden view. Lots of people have spoken up before.

Zero impact. I think it is known by now that a congressional hearing has zero impact. On anything, policy, precedure, people.

Losers, all.



Michael's picture

I just want to set up guiltiness on the Capitol Mall and decapitate every criminal who participated in the financial terrorism and rape of our once great country.

Oh regional Indian's picture

Glad to help dispel the darkness.... jd...




Buckaroo Banzai's picture

Stiglitz is kind of a douche and I'm not sure I trust Simon Johnson, which makes this whole thing even more depressing in its awfulness. What's the point of having a Congress when nothing good comes out of it... lots of words but never any meaningful action.

SignsAndWonders's picture

What's wrong with Johnson?  All because he worked at the IMF doesn't mean he's not to be trusted.  That Baseline Scenario blog was the first financial blog I started reading.  Then ZH hit the scene shortly thereafter and I've been stuck here ever since...

plocequ1's picture

Yes, we are screwed. Goodnight

StychoKiller's picture

Gene Fama, the father of the efficient markets view of finance said on CNBC recently, too big to fail is not a market, it's a government subsidy scheme. And it's an abomination and it should, it should end. The new GSE's, the Government Sponsored Enterprises of today - include most probably the largest six bank holding companies in the country; Bank of America, JP Morgan Chase, Citigroup, Wells Fargo, Goldman Sachs and Morgan Stanley.


All we need to know, summarized!

thepigman's picture

And as we speak, who has no loan growth

but instead is jacking the equity market with QE2 sales proceeds?

Bank of American, JP Morgan Chase,

Citigroup, Wells Fargo, Goldman Sachs

and Morgan Stanley.

thepigman's picture

Courtesy of our Fed Chairman.

prophet_banker's picture

[my understanding of those issues were that the processes were not followed correctly, but if they can be corrected so that they do work properly, then that's not a systemic risk.]


crooks and liars; here you see they are more concerned investors get paid than the taxpayers; and let me be specific - Billions should have been paid to local governments for the transfer of title on property the MERS avoided paying.




If we simply were unable to foreclose on properties, then that could create more serious problems.


} "so let us skirt local title transfer laws.... bankerass won't pay that fee, JUST let us forclose without proper title, after all, we the bankers created that money fair and square, and we have the signatures of people's promises to pay us back" sarcasm said

Boxed Merlot's picture

And prior to 1913, Mr. Bernanke himself conceded that the civil war period was the last time the nation had a sound currency foundation.  I certainly hope it doesn't take another one to bury the federal reserve's "confederate dollars" that have successfully enslaved our "free" nation's citizens.


Why our elected officials continue with this charade of debt based currency administered by the private sector is beyond deceit, treason and complacency. 


Open up the mints to sound coinage and the treasury to US notes to serve as legal tender.  Let the banks issue interest bearing paper if they want and can.  The US government has no business doing so. 

Our nation's government is responsible for the writing of bankruptcy laws.  They can and should declare these institutions as threats and present dangers to our nation's soveriegnty and declare their charters immediately revoked and send them packing.


I won't hold my breath.

NOTW777's picture

"And you have concentrated beneficiaries"  And those beneficiaries just happen to be some of the largest political donors

prophet_banker's picture

how about the 6% dividend the Federal Reserve pays to the member banks on Wall Street be confiscated by treasury, annually

Bartanist's picture

You don't hear much about the 6% these day even though it is on the Fed web site. In fact, I have not seen a list of Fed owners (shareholders) since the one published in 1973.

If you read about the history of the Fed, the only entity to contribute money to its foundation was the US government. The Fed then created money, loaned it to the insider international banks who then used the loaned money to make their investment in the Fed.

Talk about the ultimate conflict of interest and deceit perpetrated against the American people.... and now our congressmen and president are continually corrupt because the US system is built in such a way so that the most corrupt get the most money and money buys popularity. It is a completely disfunctional way to run a country. The irony is that we now know that anyone who gets elected is completely unsuitable for office.

Spalding_Smailes's picture

( People getting sick building apple products in China - 4:30 in ) • Video link • Anger growing around China over basic human rights


101 East - China's dirty secrets


( Reporter gets slapped around at protest ) • Video Links •


Political Crackdown In China


Pettis Says China in `Fierce Struggle' With Inflation

Spalding_Smailes's picture

Total chaos at protest in Hong Kong on Sunday •

Video linkChina now spending more on internal security than on nation defense $ 83 billion per offcial report on Saturday over concerns on social unrestStarts 2:00 in • 17  foreign reporters detained on Sunday • 12 / 13 year olds arrested at protest •



Asia Brief March 07, 2011


j.darkness's picture

Smailes, it seems you get some grief here at zh, i like your perspective, don't agree with you often, but definately appreciate your input.  above all else though, any reference to caddyshack wins my favor! 

Spalding_Smailes's picture

Thanks. I can handle the Spalding haters. A few of them are communist • socialist scum. Ever notice how badly they want Americas downfall at all cost, for any reason. And its a two liner shit just spreading misinformation with tin foil hearsay .. No facts, nothing. And they have no real clue on finance and the inter workings of the US currency in regards to debt • velocity • treasuries • letters of credit • dollar denominated debt • economics 101. Or China's capital controls ect ....

Like  .... Joseph " akak " Goebbels, the king of propaganda •


Always two sides to every story, always. I will be putting China bashing into overdrive pulling news from more than 50 China blogs and youtube clips.

bob_dabolina's picture

The strangest thing just happened.

I read this and my ass began to get very sore.


bob_dabolina's picture

I think the bankers and the politicians involved in this bullshit should be forced to sit in front of the capitol in stocks, and get seamen filled pies thrown at them by every single American.

Just line 'em up.

gwar5's picture

Wow. That was pretty amazing. That was genuine peer review.

narnia's picture

looks like C-SPAN has the full meeting at (good stuff starts around 02:16:00)


Cachao's picture


"Video temporarily unavailable.
Please try again later."

PulauHantu29's picture

"Why Steal less when you can steal more."

Wall Street Mantra

samsara's picture

TARP was the largest welfare program for corporations and their investors ever created in the history of humankind.
And some of the crumbs (ph) have been donated to the Auto Workers Unions doesn't make it any better. It makes it worse. It shows that this redistribution was no accident. It was a premeditated pillage of defenseless taxpayers by powerful lobbyists. TARP is not just a triumph of Wall Street over Main Street, it is the triumph of K- Street over the rest of America.


I think Doug Casey should look at this as a kind of Very Efficient Union working for it's constituents

Why should the little guy play the game straight?  When this is going on at this level of fraud?



UGrev's picture

Save the country, push a banker out the window.

Jim in MN's picture

This reminds me of the Mayans earnestly discussing and documenting their own doom, then going ahead and being doomed.

No, seriously.

Milton Waddams's picture

The unfortunate fact is there once was a time when the press, media, journalists, whoever, possessed a sense of obligation to synthesize information such as what was presented in this post and honestly disseminate it to the American public. I shit you not, there was a time under the apparently old and busted concept that an informed populous was the force to whatever ideals the nation stood for. No longer. Today they are disinformation artists at worst or bubble head distractions at best. Why? An effort, consciously, groupthink, or otherwise, to manage the public appearance of their winner take all overlords .. while sucking in advertisement dollars from the same.

The bankers don't want [real capital]. They hate it. They fight against it. All the arguments they put forward against it are pure lobbying. They have no research on their side. They have no analysis on their side. It is complete public-relations exercise.

Jason Bourne's picture

Fuck - I sit in front of people every fucking day and I tell them various part of the story....and their fucking reaction is usually one of the following:


1. They had to work fast and do things they normally wouldn't do to save the system. (Crash the fucking system)

2. It would have been way way worse if they didn't act the way they did. (for who asshole)

3. This stuff happens all the time, get over it. ( I don't care if it happens every fucking day, its not going to happen on our watch)

4. What's important is to make rules to make sure this never happens again.  (We already have all the fucking rules we need, we just people who actually do thier fucking job enforcing it.)


Fuck you normal American citizen.  Fuck you.  Wake up!  We have been and are continued to be fucked.  Why is this country so full of stupid lazy people who don't get it.


It is simply going to continue until it can't anymore, and that pisses me off too, because - they -  are actually going to get away with it.

Matte_Black's picture

“I still do not fully understand why it happened and obviously to the extent that I figure where it happened and why I will change my views. If the facts change I will change.”

- Alan Greenspan


...still waiting

theprofromdover's picture

Al baby, the facts don't need to change. You just needed to be smarter.



"... I didn't realise the officers of the banks might not have any allegiance to their companies, and would happily risk everything for a quick buck for themselves..." -Alan Greenspan

Al baby, the facts didn't change, and the first fact is you are a muppet.

vast-dom's picture

As scary as it is frankly disgusting. Nothing new here in general save for the fact that it keeps on keeping on this $cam or $cams right in front of our noses. Pigs that don't fly straight these banksters and their whole government. Makes me sick to pay a penny in taxes.....

glenlloyd's picture

The narrative should surprise no one

honestann's picture

Back to fundamentals.  As long as some people, but not everyone, can create 12x, 20x, 50x, 100x or more "money out of thin air" than they already have... which is called "fractional reserve practices"... corruption and predatory destruction will always dominate society.

The federal reserve must be ended.  Fiat money must be ended.  Fractional reserve practices must be ended.  All special privileges must be ended.

If anyone is allowed to do something, then everyone else must be allowed also.  If anyone gets bailed out, then everyone must get bailed out --- which is inherently impossible, so nobody can be bailed out.  Period.  End of story.  Everything else is detail.

AmCockerSpaniel's picture

honestann;  You are so right. You take the risk, you except all results. This not only the simplest answer, it's also the best answer.

CPL's picture

Let's talk about what won't happen instead and why it will never happen.

I can't begin to explain the sentence above and why it is more important to any of you at this point in time.

Bartanist's picture

Well they got one thing right. The American people now believe that the banks and government are now irredeemably intertwined and irredeemably corrupt.

Our congresspussies do not have the moral fiber or will to say "no" to criminals who care nothing for this country. They are hooked on the bribes.

CPL's picture

What is left but to kill all of the bankers and government now?


There is no question after this.  It's just done as dinner.

Implicit simplicit's picture

Who needs coffee? Wake up and read this, and your blood will re-boil enough to get you going and then some. The American people (marks) have been conned-scammed, and most are too clueless to do anything about it. It sucks, but this is the reality.

The scam is self- perpetuating, and ironically is used as pressure for more scam. Fear was used initially, and apathy is relied upon to allow fascism to evolve in perpetuity. Real sad.

Unfortunately the only thing that will stop the scammers, and wake up the marks is a major financial catastorphe that necessitates a total reset.



falak pema's picture

Where is Genghis Khan? Need him badly to clean out Wall Street and Capitol Hill! As long as he's not a surrogate Communist party member he should do fine. The wind of change will come from the Mongol Steppes, once again. It's starting in Africa right now, where the oil patch ends. Watch it spread from there on to the center and then on to the confines of Asia. 

tom's picture

Thanks for posting. Lots of good material in there. Good that it's being collected for history's sake. Sad how little public attention it's getting. But then the media, especialy financial media, are inherently pro-cyclical.

Pumpkin's picture

On the other hand, the political deals required to get TARP passed with an estimated 150 billion in largely unjustified and unjustifiable tax breaks, do not speak well for our democracy.

I think our country would be much better off if people would at least educate themselves to the fact that we are supposed to be a republic.  Direct taxes are unconstitutional as property rights are garanteed per Article 4 Section 4.

THE DORK OF CORK's picture

Watched C- span - Simon Johnson was on fire , but he was showboating.

It is a dramatic crime so I guess it needs a dramatic actor to cry havoc and let slip the dogs of war.

Charlie Brown's picture

Probably the worst effect from the whole mess is that EVERYBODY with a working brain cell now believes, beyond any shadow of doubt, that their government is for utterly and completely up for sale, and that the top vote-whore of the moment will pimp out to the highest bidder the legal ability to pick the taxpayer's pocket.

And, what is more, is that YOU will vote for it.

You DID vote for the people who did it last time, and you'll vote for the people who will do it next time, too.

You DO know that there will be a next time, right...?

ANSWER: yes, there will be a next time.

And YES, you will pay for it.

You just don't know it yet.

Mister Rumbles's picture

How much more proof do we need that we've been screwed?

Absinthe Minded's picture

Nice rant. Now what do we do about it? Seriously, we've heard all the same shit a hundred fucking times. What the fuck do we do about it? Vote, yeah that does a lot, just get another crooked bastard in there. I'm beginning to understand why the sheeple just turn the other way, there isn't enough ballsack in the country to stand up for what is right. If you do you're a looney.(Ron Paul) Do you really think America will elect him? Hell he won't even get the the Repubelican nomination. He's not American idol enough. The shit they're doing with our money makes me want to puke. Hell I've got a mortgage with fuckin' JPM and I can't do anything about it because I don't have enough equity in my house to refinance. I could stop paying it but I'm not ready to shitcan my credit yet. There, there's my fuckin rant.

And no, I don't feel better.