Top Economists: Trust is Necessary for a Stable Economy ... But Trust Won't Be Restored Until We Prosecute Wall Street Fraud

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Tue, 03/08/2011 - 06:34 | 1029006 falak pema
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The Knights Templars invented the 'TRUST' asset in the Middle Ages. It made them very rich. It made them very corrupt. It made them useless as soldiers. It made them ideal to be burnt on the bonfire in front of their original sponsors, as the TBTF Ponzi bankers of the Crusades et al. : King Philip the fair, Pope Clement V.  Maybe there is a lesson to be learnt there about today's world, towards those who break 'trust'...

Tue, 03/08/2011 - 00:45 | 1028707 Coldfire
Coldfire's picture

I trust the state to do evil. Period.

Mon, 03/07/2011 - 23:30 | 1028462 johnQpublic
johnQpublic's picture

and how do you suppose the fifty AG's deciding on the fraudclosure issue is going to play into the trust people have for not only the banks and gov't but to the rule of law itself?

Mon, 03/07/2011 - 23:30 | 1028461 Fred Hayek
Fred Hayek's picture

Let's not let the man's hypothesis go untested.  I say that just putting Blankfein in pound him in the ass prison wouldn't be enough.  Some of you might think it would be.  The only way to settle the argurment is to immediately put Blankfein in pound him in the ass prison.

It's for science!

Tue, 03/08/2011 - 04:16 | 1028953 StychoKiller
StychoKiller's picture

Jamie Heinneman and Adam Savage could set up the experiment, collect the data, AND turn it into an hour of entertaining television -- Mythbusters FTW!  :>D

Mon, 03/07/2011 - 23:23 | 1028449 johnQpublic
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i believe the settlement to the children in the OJ Simpson case was 12.5 million dollars

that sets the nominal value of a human life at 12.5 million dollars

so therefore, theft in excess of that amount is tantamount to murder and should be tried as such

six months in pound me in the ass prison?

not or the death penalty


Mon, 03/07/2011 - 22:48 | 1028385 PulauHantu29
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Jamie Dimond, CEO of JPM just took another Fat Bonus---$17 Million. The MSN News Station defended him as opposed to the teachers in madison by stating, "he works for a living."

Nasty stuff...great article.



Mon, 03/07/2011 - 23:07 | 1028417 willien1derland
willien1derland's picture

Janie Dimon should be in JAIL - the lie that is perpetuated is that he EARNED it - Without Washington DC JP Morgan is OUT OF BUSINESS - I hope he chokes on the bonus & may God have mercy on his soul...

Mon, 03/07/2011 - 22:19 | 1028311 notadouche
notadouche's picture

Sadly the one's doing the prosecutions need to line up single file right behind the banksters.  There are more crooked government officials than there are banksters.  Be sure the right folks do the perp walk. 

Mon, 03/07/2011 - 22:19 | 1028307 knukles
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"You put Lloyd Blankfein in pound-me-in-the-ass prison for one six-month term, and all this bullshit would stop, all over Wall Street," says a former congressional aide. "That's all it would take. Just once."

Thank you George.  Now I understand what the knowledgable mean when they say Congress has been bought by the banksters.
Lloyd gets tried for something or other nefarious, is found guilty of whathefuckever and is sent down the river to do hard time which Barney gleefully serves for him.

Mon, 03/07/2011 - 21:59 | 1028274 Golden monkey
Golden monkey's picture

Sorry my dear : 6 months in prison is not a cure for cocaine addiction...

Mon, 03/07/2011 - 21:55 | 1028256 DavidPierre
DavidPierre's picture

"Traditionally, gold has been a store of value when citizens do not trust their government politically or economically."

But... But... can you even TRUST Gold?

"Late last week I was dropping off some gold items to a local jeweller and one of the ladies there showed me a fax they had received from the Jeweller's Vigilance Commission.

The fax outlined a fraud that had taken place in which 95 gold bars were obtained with a bank draft which was counterfeit. This took place in Montreal on February 14. The amount of the draft was just shy of two million dollars. Many of the bars were 10oz Perth Mint Bars. The fax also included Toronto police contact information.

Incredible! A theft of almost two million dollars worth of gold and not one mention in the mainstream media or even in the gold community.

An internet search yielded some Australian news items due to the bars having been manufactured by the Perth Mint in Australia. Only in recent days have some local/mainstream media outlets released this story.

Why has this story been kept under wraps for over two weeks?

Who was the vendor and what bank did the draft originate from?

Was there a breach in protocol by the vendor in dealing with a draft of that size?

Is the vendor insured for this type of loss?

I have some thoughts on this matter and it should be a major concern to everyone in the gold community who has (or think they have) custodial gold.

There is only one vendor (whom I will not name) in Montreal that has the wherewithal to sell that volume of gold across the counter.

They also offer pool accounts as well as allocated storage and have a program affiliated with the Royal Canadian Mint.

 Could it be that releasing their name could possibly start a run on pool or allocated storage accounts in North America?

If there was a breach of protocol in dealing with a draft of that size, would that further serve to undermine confidence in such programs with other vendors?

There is one inescapable conclusion that I have arrived at because of this issue and the attendant opacity.

It is foolish to consider ANY allocated, custodial or pool account secure.

If you do not have your gold in your possession, you will one day be among many other unsecured creditors dealing in a paper or some form of legal nightmare.

If you cannot take responsibility for your own specie, your only alternative is a fund proxy such as Central Fund of Canada or Central Gold Trust. There are a few others out there but be wary of any offering settlement in specie.

Buy a proxy that is just that and nothing more.

The rubber is about to meet the road as far as deliverable specie goes.

Even well intentioned custodial vendors could face issues as the revenue they earn from storage fees is insufficient to cover their costs as investors exit with metal in hand."

I've known this bullion dealer for years and he is a straight up, no nonsence gold-bug in Alberta.


Mon, 03/07/2011 - 22:15 | 1028303 akak
akak's picture

But... But... can you even TRUST Gold?

Non sequitur.  What does a case of fraud involving the use of a counterfeit check have to do with having or not having trust in holding gold?

Mon, 03/07/2011 - 22:41 | 1028333 DavidPierre
DavidPierre's picture

"It is foolish to consider ANY allocated, custodial or pool account secure."

Surely... no 'Insiders' were involved.

Where's your "Holding"?




Mon, 03/07/2011 - 22:46 | 1028375 akak
akak's picture

OK, now I see where you were coming from.

IMHO, if you don't personally control or hold it, no, you cannot trust it.  But that does not mean not being able to trust gold, it means not being able to trust bankers and financial institutions who claim to hold your gold.  And given all recent history, why should anybody hold such trust?

Mon, 03/07/2011 - 21:45 | 1028250 Robslob
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I have an idea...restore Glass-Steagull and Volcker in their entirety and let's see whos left...

Mon, 03/07/2011 - 23:02 | 1028413 willien1derland
willien1derland's picture

Excellent Point - Totally agreed - additionally, I would like to add that the September event which trnsformed Goldman Sach & Morgan Stanley into bank holding company be repealed - Take Blankfein unworthy snout out of the Fed Discount Window - Why should US Taxpayers support Goldman Sachs when they 1.) do not have a retail banking footprint & 2) 95% of Americans could NEVER obtain an account with them because they do not qualify? - it is obscene

Mon, 03/07/2011 - 21:43 | 1028244 Magnum
Magnum's picture

You make excellent points.  I wonder how your troll-envy mwewm will nitpick this article.

Tue, 03/08/2011 - 07:05 | 1029014 nmewn
nmewn's picture

"You make excellent points.  I wonder how your troll-envy mwewm will nitpick this article."

And I wonder how a two week old ID, such as yourself, would know enough about me to render an opinion.

But I will note, you share a similar spelling dyslexia as another trollish ID who called himself Bringing It...who also happened to be a 911 moron...who spent the greater part of his days sitting under the desk of "Professor George" in class because it was the only way he could get a passing grade.

Mon, 03/07/2011 - 21:56 | 1028273 DavidPierre
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"mwewm" is a jerk-off...Ignore him!

Mon, 03/07/2011 - 21:10 | 1028163 Cistercian
Cistercian's picture

 Yes, until trust is restored by perp walks...any hope of recovery is illusory.

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