It turns out that the little people don't really see the big
picture. We see a bunch of American banksters messing
around with everything we've built economically since
the second world holocaust, and we just don't see the
silver lining.
Firstly, the American banks were let loose, with the
Glass-Steagal leash loosened too much, just so
they could catch up to those
maestros of the rehypothecation
in London.Of course, now that Standard and HSBC have been bit,
it's open warfare from Britain's erstwhile friends in NY.
But you also missed the way that banks are trying to save us,
because they see further than we do, being on the 50th floor
of some tower in Canary Wharf.
They're doing like FDR, except strangely, FDR decided to put
himself in the history books by decisively choking bankers
and putting them back in their box. But, wait for it, FDR
refloated the banks by requisitioning every American's gold
under punishment of jail.
All the bankers had to do was lie under oath. A small felony called perjury.
observe: JESSE's cafe am.
Warren
Pollock and Ann Barnhardt On the Increased Risk to Customers In the US
Financial System
"The way I read it was that basically
you no longer have property rights. If you have your money in any (US)
financial institution, you now have no property rights because in a crisis
situation a bankruptcy judge now has the right to say that all of this
speculation (by the banks and brokers) takes precedence over your
savings."
W. E. Pollock
This
is an enlightening discussion on the precedent set in the Sentinel ponzi scheme
case that places customer money in brokerages at risk by destroying the
principle of the primacy of the customer money, customer segregated funds.
There
is an Orwellian sounding distinction made by the Courts between 'stolen funds'
and 'misappropriated funds' that seems
to provide the TBTF banks and their cronies a license to loot the financial
system with impunity, although it could have been written with Jon Corzine and
JPM in mind.
… Please pay particular attention to the
section on equitable subordination, on pages 6 through 8. Unbelievably, the court acknowledged in that section that
even though some of the bankers lied under oath during the trial, that fact
did not prove "sufficiently egregious" actions on the part of the
bank.
I will quote the opinion: "Instead of
finding that their testimony [i.e. their lies] justified a finding of egregious
bank behavior, the district court essentially found that the bank officials were such artless liars that they couldn't
have been concealing deliberate wrongdoing." See page 7, column 2.
So
in other words, a U.S. Court of Appeals has found that if a banker lies under
oath during a trial, that fact proves that the bank was innocent of any
misconduct with respect to the subject matter of those lies. (e.g. there is
no fraud because they lied so brazenly and therefore badly.) Did we get
transported to bizarro world without knowing it?"
… "That Sentinel failed to keep client
funds properly segregated is not, on its own, sufficient to rule as a matter of
law that Sentinel acted ‘with
actual intent to hinder, delay, or defraud' its customers," U.S.
Circuit Judge John D. Tinder wrote in the ruling.”
It
*could be* that this distorting of property law was written for the convenience
of Jon Corzine and his ilk.
But
it could also inadvertently
pave the way for a major bailing out of an insolvent financial system using
customer funds. There is some precedent in this. Even that bastion of
the people, FDR, took
their gold by force of law and THEN appreciated it substantially by
devaluing the dollar against it in order to refund the depleted banking
system. Why the Fed's Took the Gold in
1933.
