William Black On Why "Recurrent Crises Will Get Bigger And More Disastrous" And Why All Talk Of Change By The Administration Is Just Posturing

Tyler Durden's picture

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hedgeless_horseman's picture

WILLIAM BLACK: They said, you will change the rules, and you will change the rules such that banks no longer have to recognize their losses, or we will remove your authority over the accounting rules, which is the whole reason for existence for FASB, right? So, that's extortion in anybody's language.


Clinteastwood's picture

Black Friday?



When Black Friday comes
I'll stand down by the door
And catch the grey men when they
Dive from the fourteenth floor
When Black Friday comes
I'll collect everything I'm owed
And before my friends find out
I'll be on the road
When Black Friday falls you know it's got to be
Don't let it fall on me
When Black Friday comes
I'll fly down to Muswellbrook
Gonna strike all the big red words
From my little black book
Gonna do just what I please
Gonna wear no socks and shoes
With nothing to do but feed
All the kangaroos
When Black Friday comes I'll be on that hill
You know I will

When Black Friday comes
I'm gonna dig myself a hole
Gonna lay down in it 'til
I satisfy my soul
Gonna let the world pass by me
The Archbishop's gonna sanctify me
And if he don't come across
I'm gonna let it roll
When Black Friday comes
I'm gonna stake my claim
I'll guess I'll change my name 

MarketTruth's picture

Which leads us to a New Frontier (Donald Fagen)


Yes we're gonna have a wingding
A summer smoker underground
It's just a dugout that my dad built
In case the reds decide to push the button down
We've got provisions and lots of beer
The key word is survival on the new frontier

Introduce me to that big blonde
She's got a touch of Tuesday Weld
She's wearing Ambush and a French twist
She's got us wild and she can tell
She loves to limbo, that much is clear
She's got the right dynamics for the new frontier

Well I can't wait 'til I move to the city
'Til I finally make up my mind
To learn design and study overseas

Have you got a steady boyfriend
Cause honey I've been watching you
I hear you're mad about Brubeck
I like your eyes, I like him too
He's an artist, a pioneer
We've got to have some music on the new frontier

Well I can't wait 'til I move to the city
'Til I finally make up my mind
To learn design and study overseas
Let's pretend that it's the real thing
And stay together all night long
And when I really get to know you
We'll open up the doors and climb into the dawn
Confess your passion your secret fear
Prepare to meet the challenge of the new frontier

Gubbmint Cheese's picture

Big fan of Bill Black but that beard kills me..



Anonymous's picture

He could hide a Whopper in that thang--comes in handy for the late afternoon munchies...yow

Problem Is's picture

"Big fan of Bill Black but that beard kills me.."

Black will shave the beard off after the first conviction or when people stop calling the convicted felon worm Michael Milken a philanthropist... which ever comes first.

I would put him in charge of the FDIC tomorrow... beard or no beard he has less hair on his face than Sheila Bair...

Stuart's picture

Ditto.   He absolutely gets what's going on but, man oh man, he'd fit up on the stage right beside Jerry Garcia. 

Ripped Chunk's picture

That was the first thing that struck me at the beginning with the footage of him when he was younger. With black hair, he looks allot like JG

Anonymous's picture

If I could grow one like that, I'd let it steep in a big bowl of hot water and have myself a hearty broth in no time.

deadhead's picture

...And Why All Talk Of Change By The Administration Is Just Posturing

In my last act of kindness before going to bed for the evening, please allow me to correct the error in your headline.

..And Why All Talk Of Change By The Administration Is Just BULLSHIT


Sweet dreams kiddies....

Cognitive Dissonance's picture

This is why I love deadhead. Working late into the evening to make sure every spade is called a spade.

Crab Cake's picture

"So, that's extortion in anybody's language."

They do bigger tricks than extortion.  The cartel that runs the US has essentially set up a company store from shore to shore, and we are all imprisoned/indentured workers/servants; basically slaves. 

Keep working, or we take everything... serf.

Stand up and fight in any way you can!

Take your money out of the banks and investment accounts, stop working, stop spending, and tell others what you're doing and why.  

No work = No income tax generated, No spending = No sales tax


DoChenRollingBearing's picture

Me no workee.

Me take $ out of bank.

Me buy yummy gold.

Absinthe Minded's picture

I'm in NH, we don't have any sales tax. Can I keep buying junk made in China at Walmart as long as I don't pay into the system?


You must know I'm joking, I made it by the captcha. 

Bear's picture

FASB Extortion ... This is the ultimate and most obscene abuse of power we have ever seen in America. The whole market move (666 to 1100) was built on the back of this abuse. The next Pulitzer Prize should explore the background and arm twisting accompanying this decision.

The problem is no cohort can be identified that will benefit from its exposure (except every American voter).

Please someone work on this.

Psquared's picture

And yet no one is talking about it. Have you heard it mentioned in congressional hearings? No. Have you heard anyone talking about it on MSNBC or CNBC? No. Have you heard anyone asking questions on Sunday talk shows about it? No.

William Black is the first person I have heard come out and say it was coercion and intimidation by congress that caused the FASB to change the rule. I have just skimmed the wikipedia article on the FASB, but apparently it is the SEC that gave the FASB the power to set accounting standards.

Where is the investigative journalism here? Why is no one pursuing this story. This sort of thing should be front and center. But MSM is also owned and regulated by politicians, big business, banks, Wall Street and lobbyists. So what we have left are BBs and Blog sites to report the news. It just does not make 6 pm TV unless Tyler and Marla want to start a TV station.

Anonymous's picture

this is not news in the least.....this lack
of knowledge and understanding is why this
country is doomed doomed doomed....

the cia controlled newsfakers are not going to tell
the truth - not because they are controlled by the powers
you cite but because they are controlled by much
more powerful forces coordinated through the cia....

i am not trying to be mean but a cold dispassionate
analysis means the unknowledgeable people make bad
decisions....relying on state controlled news channels
means you are being brainwashed....

subqtaneous's picture

And yet no one is talking about it. Have you heard it mentioned in congressional hearings? No. Have you heard anyone talking about it on MSNBC or CNBC? No. Have you heard anyone asking questions on Sunday talk shows about it? No.

William Black is the first person I have heard come out and say . . .


We're gettin' tired of hangin' around
Waitin' around with our heads to the ground
I hear a very gentle sound
Very near yet very far
Very soft, yeah, very clear
Come today, come today
I hear a very gentle sound
With your ear down to the ground
We want the world and we want it...
We want the world and we want it...


Today, in full scope, is reason to believe that gentle sound is getting much louder.


Anonymous's picture

Perhaps its about time to get some money together and create the first non-profit online NEWS organization that focusses on these matters.

Its worth to introduce a NEWS channel based solely on 'PEOPLE MATTERS'. I bet there is gigantic amount of goodwill money to be collected to create such honest reporting. At least it will be more opposition against the government and its bureaus. Congress doesn't do it. Let the people do it!

What you think fooks?

hedgeless_horseman's picture

Awesome idea!  We will take government funding, put real puppets on it instead of CNBC ass puppets, and call it PBS!

Anonymous's picture

There is no investigating journalism anywhere in the US. If there were, there would be no incumbent politicians in DC.

Anonymous's picture

Investigative Journalism is all but dead in the US. One has to watch Russia Today and Al Jeezera TV in order to get any decent news, which is unbelievable.
Black is the best,I can't get enough of him. Hearing the actual truth is such a relief...but shocking...
The currently building financial disaster is going to be a
whopper, please place your trays up, straighten your seatbacks and fasten your seatbelts.Prepare for a crash landing....

deadhead's picture

The next Pulitzer Prize should explore the background and arm twisting accompanying this decision


Where is the investigative journalism here?

Nothing to explore....it was openly talked about in Kanjorski's committee and Gary Ackermann (D-NY) openly pushed it on Barney's committee...one of the critters made a remark during the congressional hearings that if FASB didn't change it, Congress would.

I remember the hearings specifically and it was very evidently out in the open.

Psquared's picture

I remember the discussion about changing the "mark to market" rules for banks, but what I am referring to is the lack of discussion about the arm twisting and extortion of the FASB.

PD Quig's picture

But, it can't be. I heard Brian Wesbury (author "It's Not as Bad as You Think"), say that MTM was just causing a self-perpetuating cycle of asset devaluation that bore no relationship to the real values. We just have to suspend the MTM rules until Godot arrives. Then everything will get better.

Gargoyle's picture

I remember several "pundits" beside Mr. Wesbury preaching that changing MTM rules would solve the crisis; at that time, the real villain was considered to be an overzealous regulatory community that was "forcing" otherwise healthy banks into insolvency.

If only.

bokapita's picture

Throughout the last 10 years I have been trying to pass on the understanding that the whole 'fair value' accounting valuation idea was an accident waiting to happen. The profession, worldwide, did not want to know because its clients were loving it (houses cannot go down, right?, neither can anything else that is part of the whole pyramid scam).

So when fair values DO have to be reduced, what happens:- they are abolished. 100% for professional integrity, right? Dear God, they didn't even blush!

Believe me, the accounting profession is far, far more responsible for this entire mess than has been realised. If the profit-reporting rules had been the same as they were 20 years ago, it could not have happened. But, like all the others involved, from politicians downwards, the watchdogs were bought off.

Anonymous's picture

+1 ..... fair value = whatever a bigger fool is willing to pay on the way up, fair value = whatever you want it to be on the way down

SloSquez's picture

As a non-cable consumer, I love PBS.  Sometimes slanted, but usually dead on.  I hope my PBS raised kids see it the same way.

Anonymous's picture

Since it's impossible to be completely unbiased (anyone who tells you otherwise is deluding themselves into believine that their biases are 'true'), the best we can hope for is news/reporting which encourages listeners to question everything, including itself. PBS and NPR, for all their faults, seem to be more open about this than most other media operations.

SloSquez's picture

Why do I get the feeling LTCM was a lesson.  Not in the usual sense, but a model for future modalities?

Anonymous's picture

imho, i think you are correct

wall streets take-away, leverage wasn't bad, these guys were just bad TRADERS

so, they took the model and morphed it, and of course hedged it all too kingdom come

Anonymous's picture

Of course they're bad traders, but can you honestly name a good trader? I mean, year in and year out?

Don't tell me Rogers. Rogers is to ideological on China to be a good trader. He's also a media whore. Jimmy blows up one day just like his buddy Boone. You can count on that.

Soros? Not a chance. He's also an ideological media whore. I guarantee you Soros will blow up before the game ends.

I can't think of a single trader who doesn't eventually go all LTCM given enough time. Sure, there are guys doing well now but they're not the same guys that were doing well 20 years ago and very few of them had the moral courage to walk away on top. No, this is a game full of sharks who, let's be honest, are intellectually challenged and just looking for a fast buck. The odds say that guy always blows up sooner or later. Im not saying I'm any better but at least (unlike some of you) I know who I am.

Anonymous's picture


$1 invested alongside Soros in 1968... would be more than $5,000 today. That's why he has $20B created from thin air.

$1 invested alongside Steve Cohen in 1992... assume no fees... would be more than $2,500 today. That's why he has $20B created from thin air.

$1 invested alongside Renaissance in 1980... again, assume no fees.... would be close to $5,000,000 today. That's why the RTC partner complex is probably $30B created from thin air.

(Fees take a significant bite. Taxes take another bite for non-tax emempt investors.)

Kinda makes "Gold" look silly, no?

SWRichmond's picture

It was, and in the same sense that the Soviet Union was a lesson.  As long as the people were reasonably warm, fed, and well-oiled with vodka, and as long as the system could afford to keep a critical mass of apparatchiks in comfort, the system could sustain itself and stay in power.  Only when the economy drooped and the critical mass evaporated did the system collapse.

This is the realpolitik basis for extend and pretend, and it is being done globally.

WaterWings's picture
Closing the 'Collapse Gap': the USSR was better prepared for collapse than the US:


Real Estate Geek's picture

Thanks for the excellent link. Experience made Orlov effectively prescient; he prepared that presentation in 2006.

buzzsaw99's picture

It's kind of amusing watching them all steal with impunity. The shareholders don't get jack, nobody gets jack from all their lying and stealing except them. I guess nyc gets a cut of the loot but that's it. Even big states like California have zero representation, their delegates are total sellouts. The president is like Fredo Corleone. Wow, it's getting so that I just marvel at how much they can get away with. The rest of the world must be really stupid to go along with this scam.

Double down's picture

I have mixed up cause and effect, but now I get it

Rules>Fraud>Reprecussions>New rules 

I like it, wonder if it works for me. 

Anonymous's picture

"The most corrupt society will have the most laws."


Problem Is's picture

Nice... May I use your dead Roman's quote Anony?

tom a taxpayer's picture

Thank you William Black.

If the Congressional Financial Crisis Inquiry Commission hired William Black as Chief Investigator, then there would be a better prospect that investigations would lead to prosecutions of the mortgage and banking industry. The Commission should recognize that the public is not interested in just a history of the crimes or any lessons learned baloney. We want the Commission to investigate the bankers to uncover the criminal enterprise that pervaded this crisis.

William Black is author of "The Best Way to Rob a Bank is to Own One".



For a recap of the rampant criminality that begs for prosecution, see William Black's "Great American Bank Robbery":


Cistercian's picture

 I nominate William Black to replace Sheila Bair.


 I won't hold my breath waiting for that change...


George the baby crusher's picture

History will show that this is how the democratic experiment ends, at the greed of the few.  It is a pivotal moment, which we are set to squander.  We are sitting by the sidelines watching them rape our liberty.


And still we do nothing. 

zhandax's picture

“Nothing ends nicely, that's why it ends.”

Tom Cruise, Cocktail

Anonymouse's picture

"Ah, but in the end, we will finally beat Zenu and his fleet of DC-8s.  And when I reach OT-9, I will be able to fly."

Tom Cruise, OT-8

Anonymous's picture

DeToqueville, while touring America about 200 years ago came to the conclusion that the system would work only
untill the pols figured out they could purchase votes
of the represented. The shift has been from that to
the pols only representing lobbying money.

So history has been ignored for a very long time. What
would lead anyone to believe that history will be read
in the future and decisions made accordingly?