Posts tagged ‘conspiracy’

Spitzer the Pot Calling the Fed Kettle Black

Pot Kettle Black

Eliot Spitzer, whose job as the former Attorney General of New York was to convict criminals, was forced to quit himself as Governor for his illegal solicitation of prostitutes that he funded with secretive ATM withdrawals of government funds. Now, Mr. Spitzer is getting on his soapbox and telling others the Federal Reserve has been committing a Ponzi Scheme.

There are a lot of conspiracy theories floating around regarding the Fed’s motives and questions relating to the benefits of those receiving government bailout funds. Dylan Ratigan’s interview of Mr. Spitzer on MSNBC feeds into these conspiracy views. I can buy into conflicts of interests and the need for more transparency arguments, but let’s be realistic, this is not the DaVinci Code, this is the slow, bureaucratic Federal Government.  Even if you buy into this skeptical belief, the Fed isn’t exactly a “black box.”  The Fed proactively provides the minutes from its private meetings and systematically releases a full accounting of the Fed’s balance sheet (assets).

Mr. Spitzer and other critics point to the egregious benefits handed down to the banks and financial institutions through the bailouts and monetary system actions. Well, wasn’t that the idea? I thought our banking system (and the global banking system) was on the verge of collapse and we were trying to save the world from impending disaster? So, I think most people get the fact that our financial institutions needed a lifeline to prevent worse outcomes from occurring.

Should the Fed have carte blanche on all financial system decisions? Certainly not, but extreme situations like this generational financial crisis we are slogging through now, requires extreme measures.

Accountability I believe is even more important than the micro-managing transparency details Ron Paul (Republican/Libertarian Congressman from Texas) and others are asking for. If indeed it is the Fed’s job to remain an independent body, then maybe it’s not Congress’ job to question every word and minor decision. However, when it comes to these massive bailouts (AIG, Fannie Mae, Freddie Mac, etc.), additional details and accountability should be provided and seems fair. What we don’t need are more regulatory bodies and committees creating more inefficiencies in an already tangled system of regulatory fiefdoms.

Before Mr. Spitzer starts pointing his finger at the black Fed-kettle, perhaps he should get his illegal decision making pot in order first?

Read Full Daniel Tencer Spitzer-Ponzi Scheme Article

Wade W. Slome, CFA, CFP®

Plan. Invest. Prosper.

September 15, 2009 at 4:00 am Leave a comment

Goldman Sachs in Talks to Acquire Treasury Department

Goldman-TreasuryAndy Borowitz from the Borowitz Report published an article a few months ago satirizing the ever increasing conspiracy theories being spread regarding Goldman Sachs’ (GS) role in the global financial crisis. Spearheading the scapegoating Goldman Sachs brigade is Matt Taibbi of Rolling Stone who wrote Inside The Great American Bubble Machine. Megan McArdle at The Atlantic has a detailed critique of Taibbi’s loose facts and outlandish generalizations.

 On a lighter note, here’s what Mr. Borowitz has to say about the Goldman Sachs/Treasury Department merger, with tongue firmly in cheek:

According to Goldman spokesperson Jonathan Hestron, the merger between Goldman and the Treasury Department is “a good fit” because “they’re in the business of printing money and so are we.” The Goldman spokesman said that the merger would create efficiencies for both entities: “We already have so many employees and so much money flowing back and forth, this would just streamline things.” Mr. Hestron said the only challenge facing Goldman in completing the merger “is trying to figure out which parts of the Treasury Dept. we don’t already own.” Goldman recently celebrated record earnings by roasting a suckling pig over a bonfire of hundred-dollar bills.

 

If Matt Taibbi is having difficulty coming up with some fresh new material, perhaps he could target some of these hotly debated areas of contention:  

  • The 40 year anniversary of NASA faking the moon landing.
  • The CIA assassination of John F. Kennedy and the 4th shot from the “grassy knoll.”
  • Crashed UFO aircraft remains stored at Area 51, Air Force base in Nevada.
  • Elvis still alive.
  • Paul McCartney actually dead.
  • 9/11 terrorist attacks government cover-up.
  • The creation of HIV/AIDS by the CIA.

If Bill Clinton can’t suppress sexual relations with Monica Lewinsky and Dick Cheney can’t hide the fact he shot someone in the face with a shotgun, I guess the Goldman crew is just better at pulling the wool over the eyes of 6.5 billion people…less one smart cookie, Matt Taibbi.

Wade W. Slome, CFA, CFP®

Plan. Invest. Prosper.

DISCLOSURE: Sidoxia Capital Management and client accounts do not have direct positions in GS at the time the article was published. No information accessed through the Investing Caffeine (IC) website constitutes investment, financial, legal, tax or other advice nor is to be relied on in making an investment or other decision. Please read disclosure language on IC “Contact” page.

September 11, 2009 at 4:00 am Leave a comment


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