Podcast for Tuesday, Dec 9

Low level Madoff aide gets jail time. Criminal Wall Street bankers, NOT. More Debt Doomsday stupidity. What happens when the robots make everything?

Tuesday, Dec 9.

Barry Ritholtz on "The Big Lie"

Ritholtz is a very smart and widely read blogger. His piece in the Washington Post talks about how a new narrative is being created that makes the perpetrators of the housing crash and ultimately, the Great Recession (the banks, Wall Street), look like the victims instead.

One group has been especially vocal about shaping a new narrative of the credit crisis and economic collapse: those whose bad judgment and failed philosophy helped cause the crisis. Rather than admit the error of their ways — Repent! — these people are engaged in an active campaign to rewrite history. A Big Lie is so colossal that no one would believe that someone could have the impudence to distort the truth so infamously. There are many examples: Claims that Earth is not warming, or that evolution is not the best thesis we have for how humans developed. Those opposed to stimulus spending have gone so far as to claim that the infrastructure of the United States is just fine, Grade A (not D, as the we discussed last month), and needs little repair. Wall Street has its own version: Its Big Lie is that banks and investment houses are merely victims of the crash. You see, the entire boom and bust was caused by misguided government policies. It was not irresponsible lending or derivative or excess leverage or misguided compensation packages, but rather long-standing housing policies that were at fault.

Propaganda that even Goebbels would be proud of!

Who REALLY runs the US Treasury: Hedge fund traders

The Treasury Borrowing Advisory Committee (TBAC) consults with the US Treasury and advises them on the strength of the US economy (I thought the Fed is charged with that task) and provides recommendations on debt management issues.

Here is the statement from the Treasury's website:

The Treasury Borrowing Advisory Committee ("Borrowing Committee”) of The Securities Industry and Financial Markets Association (SIFMA) is an advisory committee governed by federal statute that meets quarterly with the Treasury Department. The Borrowing Committee’s membership is comprised of senior representatives from investment funds and banks. The Borrowing Committee presents their observations to the Treasury Department on the overall strength of the U.S. economy as well as providing recommendations on a variety of technical debt management issues. The Securities Industry and Financial Markets Association does not participate in the deliberations of the Borrowing Committee.

So who are these people who are not accountable to Congress, to the President, to taxpayers, to no one but themselves? They are Wall Street money managers, traders and hedge fund operators.

They are people like, Paul Tudor Jones of Tudor Investment Management, a billionaire hedge fund trader. Or Richard Axilrod of Moore Capital Management, another commodity speculator. Then there's Stephen Rododsky, Managing Director of Pimco, whose boss, Bill Gross, SHORTED US TREASURIES even as his employee, Mr. Rodosky SITS ON THIS VERY BOARD ADVISING THE US TREASURY HOW TO OPERATE IN THE BOND MARKET!

Then there is this "genius" statement from the "genius" chairman of this committee, Matthew E. Zames:

This "genius" doesn't even understand how rates are set, the role of the Fed, risk (or lack thereof) to fiat currency issuers when it comes to their own debt/spending.

Are you kidding????????

This is beyond outrageous. This is a total hijacking of the American economy by a bunch of speculators and market operators that have no interest in the average American whatsoever. This is a sham! The public needs to know about this! Please distribute to as many people as possible!