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Corrupt Government Officials Should Be In Jail … Alongside Corrupt Banksters

George Washington's picture





 

Wall Street fraud caused the Great Depression and the current financial crisis. Top economists and financial experts agree that our economy will never recover unless Wall Street fraud is prosecuted.

Yet the government has more or less made it official policy not to prosecute fraud, and instead to do everything necessary to cover up for Wall Street.  For example, the Obama administration is prosecuting fewer financial crimes  than under Reagan or either Bush.

For example, we pointed out in 2010:

The government’s entire strategy now – as during the S&L crisis – is to cover up how bad things are.

 

But it is not only a matter of covering up fraud that has already happened. The government also created an environment which greatly encouraged fraud.

 

Here are just a few of many potential examples:

  • Tim Geithner was complicit in Lehman’s accounting fraud, (and see this), and pushed to pay AIG’s CDS counterparties at full value, and then to keep the deal secret. And as Robert Reich notes, Geithner was “very much in the center of the action” regarding the secret bail out of Bear Stearns without Congressional approval. William Black points out: “Mr. Geithner, as President of the Federal Reserve Bank of New York since October 2003, was one of those senior regulators who failed to take any effective regulatory action to prevent the crisis, but instead covered up its depth”
  • The former chief accountant for the SEC says that Bernanke and Paulson broke the law and should be prosecuted
  • The government knew about mortgage fraud a long time ago. For example, the FBI warned of an “epidemic” of mortgage fraud in 2004. However, the FBI, DOJ and other government agencies then stood down and did nothing. See this and this. For example, the Federal Reserve turned its cheek and allowed massive fraud, and the SEC has repeatedly ignored accounting fraud. Indeed, Alan Greenspan took the position that fraud could never happen
  • Paulson and Bernanke falsely stated that the big banks receiving Tarp money were healthy, when they were not

Economist James K. Galbraith wrote in the introduction to his father, John Kenneth Galbraith’s, definitive study of the Great Depression, The Great Crash, 1929:

The main relevance of The Great Crash, 1929 to the great crisis of 2008 is surely here. In both cases, the government knew what it should do. Both times, it declined to do it. In the summer of 1929 a few stern words from on high, a rise in the discount rate, a tough investigation into the pyramid schemes of the day, and the house of cards on Wall Street would have tumbled before its fall destroyed the whole economy. In 2004, the FBI warned publicly of “an epidemic of mortgage fraud.” But the government did nothing, and less than nothing, delivering instead low interest rates, deregulation and clear signals that laws would not be enforced. The signals were not subtle: on one occasion the director of the Office of Thrift Supervision came to a conference with copies of the Federal Register and a chainsaw. There followed every manner of scheme to fleece the unsuspecting ….

 

This was fraud, perpetrated in the first instance by the government on the population, and by the rich on the poor.

 

***

 

The government that permits this to happen is complicit in a vast crime.

In other words, the fraud started at the very top with Greenspan, Bush, Paulson, Negraponte, Bernanke, Geithner, Rubin, Summers and all of the rest of the boys.

 

As William Black told me today:

In criminology jargon: they created an intensely criminogenic environment.

The government’s special inspector general in charge of oversight of the Troubled Asset Relief Program (the “TARP” bank bailouts) – Neil M. Barofsky – said today:

It was a “message to the banks ‘if we commit fraud, we break the rules, don’t worry, we’re too big — they’ll never bring the appropriate steps against us,’” Barofsky says in an interview with The Daily Ticker. “And that is why we’ve had scandal after scandal after scandal.”

 

This was a “global conspiracy to fix one of the most important interest rates in the world,” Barofsky continues. “[Geithner] heard this information and looked the other way. Geithner and other regulators should be held accountable, they should be fired across the board. If they knew about an ongoing fraud, and they didn’t do anything about it, they don’t deserve to have their jobs. I hope we see people in handcuffs.

Government regulators have become so corrupted and “captured” by those they regulate that Americans know that the cop is on the take.  (Even top justice officials are incredibly cozy with Wall Street fraudsters.)

Institutional corruption is killing people’s trust in our government and our institutions, which is one of the reasons the economy is faltering again.

Indeed, polls show that very few Americans believe that the U.S. government has the “consent of the governed”, a higher percentage of Americans liked King George during the Revolutionary War than like Congress today, and people are publicly discussing whether it’s a good or bad idea to “hang bankers”.

I noted 7 years ago:

I am NOT calling for the overthrow of the government. In fact, I am calling for the reinstatement of our government. I am calling for an end to lawless dictatorship and a return to the rule of law. Rather than trying to subvert the constitution, I am calling for its enforcement.

 

***

 

The best way to avoid all types of revolution would be for the government to start following the rule of law. I passionately hope it will do so.

While conservatives tend to view government as the problem, and liberals tend to view corporations as the problem, the real problem is the malignant, symbiotic relationship between corrupt officials and criminal  corporate leaders.  Without the cancerous relationship, neither side could cause so much damage.  If America returns to the rule of law, we might have a fighting chance.

The justice system may be the only thing which stands between peace and violence.   All of those who benefited from Wall Street fraud must be prosecuted ... including corrupt government officials who aided and abetted their crimes, helped cover them up, or have blocked prosecution.

Iceland should be a role model:

Iceland has prosecuted the fraudster bank heads (and here and here) and their former prime minister, and their economy is recovering nicely… because trust is being restored in the financial system.

Indeed, even evangelical leader Pat Robertson agrees:

Pat Robertson discussed the banking crisis and glowingly spoke about how Iceland jailed many of the bankers who devastated their nation’s economy by taking out fraudulent loans. Robertson hailed the Nordic nation for its actions and said that Americans should deal with the financial crisis in the same way.

 

***

 

“They are putting people in jail.  Prime ministers are being indicted. They are going after banks. The people said the banks are ripping us off. We don’t like what they did, and they brought our country to ruin. Suddenly, Iceland is turning around and they look like a big success story!”

 

***

 

“We could start putting all of those bankers in jail. There was not one banker prosecuted and so many people were lying, and so-called “no-doc loans” and liars’ loans, and none of them have been held accountable.

 

***

Iceland is leading the way and their GDP is growing, and all of a sudden, they were in a terrible mess, terrible mess, and look what is happening!”

 


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Mon, 07/30/2012 - 02:59 | Link to Comment petersantilli
petersantilli's picture

When will our so-called leadership step up & lead a revolt....here's my epic rant from tonight's show.  http://youtu.be/H_1qLbuEB90

 

 

 

 

Fri, 07/27/2012 - 09:29 | Link to Comment janchup
janchup's picture

Geithner is under the same protection as the criminal banks have been for years. 

Fri, 07/27/2012 - 09:02 | Link to Comment Gunga
Gunga's picture

Www.operationsleepinggiant.com from the Oathkeepers is relevant to this thread, especially for those of us who are veterans.

Fri, 07/27/2012 - 07:51 | Link to Comment thetruthseeker
thetruthseeker's picture

I am sorry but jail isn't going to cut it. These people literally have blood on their hands and have committed crimes against humanity. As such, they need to be led to the executioner's block after a very public trial which lays all their crimes bare for all the world to see.

Fri, 07/27/2012 - 09:59 | Link to Comment Toolshed
Toolshed's picture

I think prosecution would be a great recovery opprotunity for a different reason. Perform the executions in the largest stadiums in the country and broadcast them on pay per view worldwide. Let the live audience decide on the method of execution like on a game show. "Ladies and Gentlemen, Press button A for guillotine, button B for boiling oil, button C for draw and quatering, etc., etc. Voila! The national debt is Corzined just like that!!!

Fri, 07/27/2012 - 08:44 | Link to Comment johnQpublic
johnQpublic's picture

nuremburg redux

Fri, 07/27/2012 - 07:01 | Link to Comment ReeferMac
ReeferMac's picture

From the Mountain Top George!

Thanks for sharing!

Fri, 07/27/2012 - 06:56 | Link to Comment overmedicatedun...
overmedicatedundersexed's picture

A "conservative" supreme court judge came out after the obuma care aborted ruling..to chide the tax units about disrespect of the court,even though he voted no to it. The disgust for politicians and now judges is at a high, the elite do not like the growing disgust of .gov..seems some people have been forced to no longer live with eyes wide shut.

hang em all.

Fri, 07/27/2012 - 07:16 | Link to Comment overmedicatedun...
overmedicatedundersexed's picture

if one listens to "conservative talk radio" it seems they are spinning like tops trying to justify the evil that is Obuma ( i agree he's a elite fascist nwo wet dream) and how Mitty is ,well, not Obuma..they are very scared that the conservative public is not buying the program. fear and loathing in DC.  too many people have stopped living with eyes wide shut.

Fri, 07/27/2012 - 09:06 | Link to Comment mendolover
mendolover's picture

+1

One fear I have is that Mittens Romney may be more dangerous than the person presently occupying the WH, since he is so much smarter and better connected to the globalist elite. 

Fri, 07/27/2012 - 10:02 | Link to Comment Toolshed
Toolshed's picture

Get fucking real fool. Have you listened to either ones idiotic public comments lately? They are both so stupid it makes my hair hurt.

Fri, 07/27/2012 - 05:35 | Link to Comment blueridgeviews
blueridgeviews's picture

How do we make it happen GW?

Fri, 07/27/2012 - 05:53 | Link to Comment AldousHuxley
AldousHuxley's picture

Expose them.....if they are corrupt, they have other skeletons to hide....democrats usually some sexual deviance, republicans some financial tax cheating scam

Fri, 07/27/2012 - 05:25 | Link to Comment Bartanist
Bartanist's picture

The problem with those with limited vision in government is that they believe that they must change the rules under which people live so that people can be subjugated and controlled.

The real answer to global government is to adapt government to the way that people want and need to live. This would mean a lighter and not a heavier touch, facilitating as opposed to ruling, judging and persecuting.

Of course, this is inconceivable to and incompatible with those sociopaths and psychopaths who seem to collect in government and who crave power OVER others.

Fri, 07/27/2012 - 05:34 | Link to Comment falak pema
falak pema's picture

It would be interesting to see who would make the "corrupt" government official list.

Would you include Barney Frank amongst them?

Watch this defense by the senator of his lame duck legislation that has done nothing to reign in the bankster activity of WS :

Maria Bartiromo And Barney Frank CNBC Interview - Business Insider

There are crimes of commission which are obvious and there are crimes of omission and complicity by false flag decisions which are less obvious, but just as nefarious, in CONTRIVED REGULATORY CAPTURE...THE KILLER BLOW AFTER THE FALL TO PROTECT THE OLIGARCHY WALL.

PS : Not everybody buys this dire, doom and gloom line. Here is one self professed real estate speculator whose in gung-ho about the USA's future 2654997

Fri, 07/27/2012 - 05:09 | Link to Comment Colonel
Colonel's picture

"The bold efforts of the present bank has made to control the government… Are but premonitions of the fate that awaits the American people should they be deluded into a perpetuation of this institution, or the establishment of another like it." President Andrew Jackson 1757-1845

Fri, 07/27/2012 - 04:58 | Link to Comment silverdragon
silverdragon's picture

America has the politicians it deserves.

Fri, 07/27/2012 - 08:19 | Link to Comment petolo
petolo's picture

Sad but true. Paraphrasing Thorstein Veblen: There will never be a revolution in America as Americans don,t want to overthrow their managers but join them.

Fri, 07/27/2012 - 08:20 | Link to Comment madcows
madcows's picture

We can only vote for who they put up there.  And, we can't even vote for the majority of our government officials.  They are appointed cronys.  Just look at the supreme court.

Fri, 07/27/2012 - 04:21 | Link to Comment dcb
dcb's picture

How many times with their record of failure can I say the only way to justify the appointment of geithner and reappointment of bernanke was to continue a cover up of illegal activities. To bring somone not involved in the illegal activities inside to run things risks having the activities become public. Hello look how the senate isn't allowing a vote to audit the fed. the fed is a cess pool of illegal activity that knows no bounds in breaking the rule of law or moral most american's would consider valid. the only reason to not allow the audit of the fed is a massive cover up as well.

 

of not this vote wasn't even mentioned in the nytimes, what's going on in the senate, I haven't been able to find in any major news media. Hows that one for you george. think they don't want to let us know howour elected officials would vote!!!

Fri, 07/27/2012 - 05:24 | Link to Comment NuYawkFrankie
NuYawkFrankie's picture

Tic toc... clank...tic toc... clank...tic toc......clank!....

 

Ahhhhh... could that be the sound of the  Millstones Of Justice - which grind exceedingly fine - arising from a twenty-year slumber and slowly cranking-up  in The Morning ?

 

Fri, 07/27/2012 - 03:38 | Link to Comment silverdragon
silverdragon's picture

Paper Silver is on the move upwards, it is sad that I actually care what paper Silver is doing but surely physical Silver will follow.

When will TPTB run out of juice and free Silver to assume its rightfull value?

Can not be far off now.

Fri, 07/27/2012 - 03:32 | Link to Comment silverdragon
silverdragon's picture

Just by reducing Govt expenditure accross the board, all depts by 10% per year would be a good start. Do this for a couple of years until the budget is balanced.

Aint gunna happen though.

Thank f*ck I have lots of physical Silver.

Fri, 07/27/2012 - 02:05 | Link to Comment gregga777
gregga777's picture

Do you mean to tell me that there are actually Americans who trust the government? Not really. The national opinion survey companies are required to use "approved" lists of "likely" voters furnished by the Feds-or else.....

Fri, 07/27/2012 - 01:48 | Link to Comment ebworthen
ebworthen's picture

"Corrupt Government Officials Should Be In Jail … Alongside Corrupt Banksters"

Amen.

Fri, 07/27/2012 - 01:37 | Link to Comment Malachi Constant
Malachi Constant's picture

Corrupt Government Officials Should Be In Jail … Alongside Corrupt Banksters

I hope George Washington sees the irony of his own title.

  1. Government is a part of the State.
  2. Jail is a part of the State.
  3. Courts that send to jail are a part of the State.
  4. Bankers are a part of the State.

Thus, the title is "The State should inflict suffering on itself".

Of course, the word "corrupt" is redundant, since any hierarchy ends (or begins, doesn't matter in an Ouroboros) its lifecycle as tyranny.

The only thing we can do in Kali Yuga is as little as possible.

Fri, 07/27/2012 - 03:44 | Link to Comment capitallosses
capitallosses's picture

Yeh, I see your point. It would be better if we just gathered them up and hung them by the lampposts.

Fri, 07/27/2012 - 02:11 | Link to Comment putaipan
putaipan's picture

mr, malachi- i really liked the bass player in the a.e.o.c, ( the art ensemble of chicago) his last name was favors.

dear mr,washington- while i appreciate all your efforts in revealing our last known assets, i think i am the only one trying to bring to your attention that identifying them publicly for future theft/fraud also acknowledges our 1933 default and corporate personhood liabilities for thers odious debt?

let's give him his daily bail- CORZINE CRONYISM

i forgot what else i was about to say......was it "ROCKY ! ROCKY!"  ?

c'mon guys, you, me, max, the tylers, gotta pick someone better than mr. nepotism at it's best- paul to be a "come together" canidate.....and mr. anderson doesn't really seem to want the job.....

Fri, 07/27/2012 - 12:38 | Link to Comment HardAssets
HardAssets's picture

Too many people are unaware of who those in the federal govt work for - they are agents of the corporate UNITED STATES under administrative law (Administrative Procedures Act), not the law recognzing inalienable rights under the Constitution. We as 14th Amendment UNITED STATES citizens (subjects/serfs) are nothing but the labor collateral used to pay off the 1933 Bankruptcy; we have no 'rights'. In addition, the Federal Reserve is a private corporation and its true purpose is to protect the interests of the private banks who own it. The impact of its actions on the economy or citizenry is coincidental and irrelevant to the Fed in terms of what it actually does. Indeed, its actions Caused the 1930s Great Depression. They caused the coming Greatest Global Depression which could very possibly also bring World War III. Economist and former Asst Sec of the Treasury Dr. Paul Craig Roberts stated recently that (the CORPORATE UNITED STATES) is currently the greatest threat to all life on this planet.

 Note: for anyone reading this - - websearch the various terms youre not familiar with. This can be difficult to wrap your head around because it goes so counter to everything we were told since we were children.

 

 

-

 

Fri, 07/27/2012 - 07:03 | Link to Comment Benjamin Glutton
Benjamin Glutton's picture

George,

How might we find out if there is a National Security Directive in place authorized by the Bush Admin. and re-authorized by the Obama Admin. protecting the Banksters/W/S/Fed Res from criminal action arising from period before and after the collapse? This directive may have its origins in the Banking Emergency declared by the Fed Res and Greenspan immediately following 9/11 which was authorized by Bush to protect the nation err Wall Street.

_________________________________________________

It is also clear that the White House has kept substantial information concerning its presidential proclamations and directives hidden from Congress. For example, according to Steven Aftergood of the Federation of American Scientists Project on Government Secrecy:

Of the 54 National Security Presidential Directives issued by the [George W.] Bush Administration to date, the titles of only about half have been publicly identified. There is descriptive material or actual text in the public domain for only about a third. In other words, there are dozens of undisclosed Presidential directives that define U.S. national security policy and task government agencies, but whose substance is unknown either to the public or, as a rule, to Congress.”

Read more at http://www.nakedcapitalism.com/2010/02/guest-post-how-has-the-official-state-of-emergency-in-continuous-effect-from-2001-to-the-present-effected-the-economy-and-business.html#kSFqA3VFfYitso5y.99 though I saw no attribution above appears to be your work. ___________________________________________________________

I suspect that sometime in distant future we will discover all were protected as a matter of National Security.

There really is no other possible explanation for the current outcome or source of political power to make it so.

keep fighting the good fight. a message of inspiration from our Canadian friends.

http://www.youtube.com/watch?v=rlJA-cN2C_0

 

Fri, 07/27/2012 - 00:20 | Link to Comment 2discern
2discern's picture

We will all be Corzined. Don't worry Holder will defend us...after were guilty of breathing Napolitano will incarcerate us for thinking, but barry soetero will gives us new ID and release us for latrene duty. Geitner will file our taxes with his version of Timnah Turbo screw us and head back to the slammer with a past friend Madoff.

Thu, 07/26/2012 - 23:35 | Link to Comment Fozzy Slippers
Fozzy Slippers's picture

It's way past time. Where's Robespierre?

 Off with their heads.

Fri, 07/27/2012 - 02:15 | Link to Comment putaipan
putaipan's picture

let a thousand troll heads rolling last words spit spew forth roll !

Thu, 07/26/2012 - 23:29 | Link to Comment monad
monad's picture

Such as freeloader AG Holder & his jerkoff agency?

Thu, 07/26/2012 - 22:58 | Link to Comment robertocarlos
robertocarlos's picture

Take all their stuff and pay down the debt. Then go BK anyways. Why won't some General stage a coup? Somebody has to save the world.

Fri, 07/27/2012 - 02:30 | Link to Comment The Navigator
The Navigator's picture

One Star and below are thinking about it.

Thu, 07/26/2012 - 22:20 | Link to Comment BeetleBailey
BeetleBailey's picture

....tell us something we don't know. All these motherfucking pot lickers need to be behind bars.

Thu, 07/26/2012 - 22:02 | Link to Comment boogerbently
boogerbently's picture

We are at their mercy. We can only hope for a modicum of charity.

I wouldn't know how to join up with any of you "rebel patriots" even if we could agree it was time !

Fri, 07/27/2012 - 02:28 | Link to Comment The Navigator
The Navigator's picture

Start by getting to know your neighbors. 'Lightly' talk about your political beliefs (too late for me, most of my marxist neighbors think I'm the brother that shot up the Colorado theater) and learn who is ready for the red pill. Tune them into Drudge, ZH, RT.com and other alternative info. You don't need to join up with any of us "rebel patriots", grow your own (group).

Agree it was time? You'll know when it's time. Just prepare.

John Conners, Skynet Out.

Thu, 07/26/2012 - 23:07 | Link to Comment brace_brace_brace
Thu, 07/26/2012 - 22:02 | Link to Comment nmewn
nmewn's picture

Now we're getting somewhere...its a two-headed snake...always has been. No amount of OWS gnashing of teeth & rending of clothes was ever going to solve this.

"Without the cancerous relationship, neither side could cause so much damage.  If America returns to the rule of law, we might have a fighting chance.

The justice system may be the only thing which stands between peace and violence.   All of those who benefited from Wall Street fraud must be prosecuted ... including corrupt government officials who aided and abetted their crimes, helped cover them up, or have blocked prosecution."

The "rule of law" holds that no man is above it...not Jon Corzine, not Paulson, Rubin or Gramm or Dodd.

No one.

If you were a "public servant" who profited from the decisions you made obstensibly on behalf of us...your pensions and security details paid for by us for life are now forfeit. You were incompetent. We don't reward incompetence.

Clawback Amendement.

If you were a "public servant" who knowingly stood to profit from the decisions you made on behalf of us...your ass is going to trial where judgement will be swift.

Its now the only honorable way out. Prove you're worthy to live among us.

Fri, 07/27/2012 - 02:17 | Link to Comment The Navigator
The Navigator's picture

Where judgement will be swift and PAINFUL!

Fri, 07/27/2012 - 09:01 | Link to Comment nmewn
nmewn's picture

Individual accountability...there will be no "socialization" of guilt...the sophomoric "everyone was doing it" will not be an adequate defense this time.

Thu, 07/26/2012 - 21:49 | Link to Comment johny2
johny2's picture

It would be the first time in known history, where the ruling class prosecuted and arrested itself.

Fri, 07/27/2012 - 02:17 | Link to Comment putaipan
putaipan's picture

death by self inflicted muamar last moments..... with a twirll.

Thu, 07/26/2012 - 22:30 | Link to Comment engineertheeconomy
engineertheeconomy's picture

When the hundredth monkey picks up a rifle and starts shooting, we will know the day has arrived to do as our founding fathers have instructed us. Today is a good day to stock up on ammunition and clean the rifle

Thu, 07/26/2012 - 21:49 | Link to Comment Jumbotron
Jumbotron's picture

It's easy to break the law when you are the lawmaker......it's easy to rob banks when you run them.

Everything written by these two classes always have loopholes and trap doors for them to squeeze through

Thu, 07/26/2012 - 21:41 | Link to Comment Aquarius
Aquarius's picture

What else could happen in an "intensely criminogenic environment" except Fraud, crime, war, genocide and manipulation, etc., etc? The environment and more specifically the milieu, that defines life behaviour.


We know all that, as well as that "Economic Theory" doesn't exist, so prosecute. Oh, you can't, because you may get on Obama's Kill List, executed in the US war zone of the USA and or sent to Guantanemo Bay workshop for decent people.

Now do you understand why the US and Australian politicians want Manning, and Assange dead?

The environment can be defined under many variants of the same disease, which is socialism equal to = Bolshevecism = Marxian Socialism = Fascism = Nazism = Democratic Socialism = Trotskyism = Stalinism = Communism (etc.). All forms require the same methods to maintain dominace, which is to eliminate ~50% of their populations.

Why? Productivity is controlled and supplied by the STATE where the State can do nothing but Kill, steal, incarcerate, manilulate, Lie as it is the Monopoly of Coercion.

Only Truth that is confronted and validated can avoid the crazed barabrians who lust for this Power over HUmanity.

 

It's a simple matter of Physics!

Fri, 07/27/2012 - 06:01 | Link to Comment falak pema
falak pema's picture

you've left out the most important ingredient in your mish mash : Oilgarchy big business corpo-fascism. That's where were are in this current HAdron collidor of financialista global construct. They own the GOD particle in today's society. Not Humanity.

And, by the way, Humanity has to have a political face and presence to exert its WILL collectively, as individually its called ANARCHY! That ALWAYS leads to DESPOTISM. History is as simple as physics and Entropy slope.  

Care to define that collective will of humanity; or are we all in the Garden of Eden once all governments cease to exist?

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