The Price of Honesty

Apr.28.09 | About: Financial Select (XLF)

You might recall a recent article I wrote called "Madoff in Perspective" where I point out that the real Ponzi scheme is being ignored - the one orchestrated by the financial industry. I also make mention of this intentional fraud in "America's Financial Apocalypse 2009 Update" a few months earlier.

Throughout this debacle, I have made accusations against the executives of the major financial institutions, claiming they intentionally made bad loans and sold them off to naive investors. They did this of course to boost earnings, which automatically boosted their bonuses. Let me reiterate. The executives of every single large financial institution (as well as some medium-sized ones) engaged in shareholder and securities fraud. And due to the response from Washington, one could argue that our political leaders are guilty of taxpayer fraud.

Connect the dots. Washington has passed out trillions of taxpayer dollars as an attempt to undo the fraud they allowed Wall Street and the real estate industry to create. This means they have provided taxpayer funds for criminal activities. In case you don’t realize the ramifications, what it means is that Washington has committed a massive felony; every single politician who voted for these bailout funds should be in prison.

Meanwhile, not one single executive from the financial industry involved in the real Ponzi scheme has faced charges. Even the SEC has stayed away. Folks, these activities are sufficient to start a revolutionary war. You certainly won't hear anyone on TV mention this because the media is filled with liars, hacks and incompetent idiots.

Until today, I thought I was the only one making the accusation that the financial industry intentionally designed this real estate and banking fraud to fill their greedy motives. And of course the Federal Reserve was in on this scam.

But I came across a video from the Bill Moyers Show, featuring an interview with Professor William K. Black. Professor Black was one of the instrumental regulators/investigators during the S&L crisis. And he has been very outspoken about the current crisis. While nothing he has said is news to me, it's likely to be news to the masses because they have been brainwashed by the mainstream media. Because Black has some mainstream exposure, I want to salute his honesty because he is the ONLY expert who has not been censored for speaking the truth.

What price will Black pay for his honesty? In America, you are promoted to high positions for doing the wrong thing, as long as it is the right thing for the company. The same is true for Washington. Our politicians get elected because they are funded by lobbyist groups representing corporations.

The question I have is how long before Black receives backlash from Washington and others. We already saw Elliot Spitzer's fate. Now before you prove to me how the media brainwashed you, I want you to understand that Spitzer was taken out because he was doing the job the FBI and SEC refused to do. The media helped remove Spitzer by blowing his prostitute drama out of proportion. This made him appear as a "bad" person. Do you remember how the media hounded this issue for weeks, as if it was some huge deal? Apparently, the media made it into a huge deal; huge enough to pressure him to resign.

Don’t get me wrong. Spitzer wasn’t an angel. Many have criticized his selective witch hunt of certain individuals, while leaving his friends and other Wall Street buddies like Jim Cramer alone. Regardless, at least he went after a good part of the criminals; something no one (other than Cuomo) has been willing to do. Was it to build political power? Who knows? Who cares?

Now Andrew Cuomo, New York State Attorney General is going after the banking executives. I am wondering when he will be framed.

Let me be clear. Black and Cuomo are in grave danger because they are doing the right thing. They are going after the biggest criminals in the world. The financial industry executives have committed crimes that are worthy of placing them on the FBI's Most Wanted list. Yet, people do not realize this because the media dictates what people deem as real issues. Hopefully by now you understand how dangerous America's media industry has become. It is controlled by a small handful of powerful individuals who are tightly linked with Washington and Wall Street.

You may not know this, but in 2008, I was questioned by Federal agents after the FDIC became worried that I would expose the details of the massive banking fraud I had uncovered. Specifically, I know for a fact that Washington Mutual was not only NOT insolvent, but several banks illegally shorted the stock in order to intentionally cause its demise, knowing that one of them would get the assets for essentially nothing. Finally, there was massive insider trading with WaMu stock. I summarized these findings in a 30-page formal report submitted to the SEC in October 2008 (it will be made available to subscribers of my newsletter service).

I plan to go public with the details of my encounters with the Feds, FDIC and OTS in the future.

Now, back to Black. I urge you to watch the interview. Forget all of the trash you watch on TV. This is what you should be watching. Everyone else on TV is a liar, shill or idiot.