What Is Risked When Prosecution Is Absent
The Market Ticker ® - Commentary on The Capital Markets
Posted 2011-10-02 19:08
by Karl Denninger
in Editorial
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What Is Risked When Prosecution Is Absent
 

I have long mused, in fact since the beginning of this blog, about one primary question:

What happens when the people discern that the government is nothing more than a band of felons instead of the cops?

Many considered this a rhetorical question.  Those on the left sneered, those on the right looked at the argument and scoffed: Oh no, look, we busted Marco over there for drug running last week.

Ah, you did, but Wachovia you did not "bust" in a criminal sense, even though they admitted in court that they ran drug money for criminal cartels.

There was no prosecution.  Instead there was a "deferred agreement", and the screaming in the media started only once it expired and criminal charges could no longer be brought.

The Ticker, on the other hand, covered it long before that time.  Few others did, and there was no mainstream coverage and demand for prosecution at all.

The danger, as I have repeatedly pointed out, in the government's willful, intentional and repeated refusal to put an end to these abuses is that there is a point at which the people have had enough and will simply not sit for it any more, nor will they believe they can vote for a change and actually receive that change. 

How many people voted for "change" in 2008 yet did not receive it?

Once that point is reached civil order can be lost, perhaps irretrievably so.

Government, for its part, always seems to believe that this day will never come, no matter the severity of the abuses they tolerate by the rich and powerful, the favors they grant or the screwing they either mete out themselves or allow others to perform in exchange for some renumeration in campaign contributions.  The King of England didn't think the people would snap.  Neville Chamberlain was quite sure that we could have "peace in our time" through appeasement of bad acts by others, in his case Adolph Hitler.  In the more-recent past there was Hosni Mubarak, among others.

Likewise, both President Bush and President Obama have taken this same approach, and have even said in public that we must "move on" and not look to what happened, but to what we can do in the future.

Will this willful refusal to hold people to account for their ponzi schemes in the interest of "Wall Street" and continued pretension that we'll "muddle through" be proved correct in the fullness of time?

Or will, as this video states, the simple fact that once there is nobody left to screw an ugly reality will face those who have been doing the screwing: The man who you have screwed out of everything -- the man with nothing left -- has nothing left to lose.

I do not look forward to the day being proclaimed and looked toward in this presentation.  There is no reason for our political and justice system to have allowed the financial******of our nation and her people, not to mention that of the rest of the developed and developing world.

Please remember, ladies and gentlemen, that the Bush Administration sued states that attempted to put a stop to predatory lending -- a major part of the housing bubble.  Did President Obama reverse these decisions and go after the banksters?  No -- instead he has tried to "settle" the fraudclosure robosigning and predatory lending of the 2000s rather than prosecuting wrongdoers, despite sworn, under-oath testimony regarding intentional sales of loans that did not conform to claimed standards and over 100,000 withdrawn affidavits that appear to clearly document pervasive and outrageous acts of perjury.

Should you or I attempt to run a pyramid scheme as the banksters and government have, or screw little old ladies out of their retirement income we would be sitting in prison serving a just sentence.  Charles Ponzi was prosecuted and jailed, as was Bernie Madoff.  But those who ran the below claim of "prosperity" for 30 years -- including but certainly not limited to Alan Greenspan, Ben Bernanke and the political elites in both Democrat and Republicans parties, which is just as mathematically impossible as what Charles did -- walk free.

If you're of the religious sort it would seem that prayer would be appropriate at this time.

 

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Infidel
Posts: 5463
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between here and there
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and when they are done with the bankers?

other than that, American vernacular, Brit accent.

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"DON'T BELIEVE THEM, DON'T FEAR THEM, DON'T ASK ANYTHING OF THEM." -ALEXANDER SOLZHENITSYN.

Dazedncornfused
Posts: 311
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Green
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>the man with nothing left -- has nothing left to lose.<

OK, now I'm certain of it - you're channeling Chuck Harder. For you folks under 50, he was a radio populist who was neck-and-neck with Rash Limpbough in the 90s. Populist, warned us about the disadvantages of NAFTA, voted for the Dem (Clinton) then was disillusioned. Don't get me wrong, I liked Harder and subscribed to his newspaper. The views you have in common are to your credit. The quote was a tagline he used at least once an hour.

I know this because looking through your immediate previous post, I could refute each of your 7 bullet points. Easily. There is no liberal Dem who will go along with even one. I see them every day, my paycheck is signed by them, they get their worship devotionals from PBS each morning, won't happen.

My spidey-sense tingled with the second video of that post. When the megaphone with the dollar bill on his shoulder said he was fiscally conservative "but he was socially moderate" I knew it was over. You are going to find that all these folks of the Occupy Wall Street crowd want Obama re-elected because that'll teach the bankers. I'll bet that lunatic Alex Jones will realize that. Ha!



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Stand up and be counted or line up and be numbered.

Stemmit
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In The Law, Bastiat explains that if the privileged classes use the government for "legalized plunder" this will encourage the lower classes to revolt or use socialist "legalized plunder" and that the correct response to both the socialists and the corporatists is to cease all "legalized plunder". Bastiat also explains why his position is that the law cannot defend life, liberty and property if it promotes socialist policies. When used to obtain "legalized plunder" for any group, he says, the law is perverted and turned against the thing it is supposed to defend.
http://en.wikipedia.org/wiki/Fr%C3%A9d%C....

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The path of the righteous man is beset on all sides by the inequities of the selfish and the tyranny of evil men. Blessed is he who in the name of charity and goodwill shepherds the weak through the valley of darkness, for he is truly his brother's keeper and the finder of lost children. And I will execute great v
Uwe
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19446
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Quote:
Video: A messege to the bankers from anonymous

I've heard that script before. Ah yes, I found what looks to be the original version:
http://www.youtube.com/watch?v=JqgDzEqdv....

It appears "weareanonymous" stole the sound track from Snordelhans, aka Heretic Productions, aka Les Visible, who espouses some less than credible theories in his other videos.

-Uwe-

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“Whenever the legislators endeavor to take away and destroy the property of the people, or to reduce them to slavery under arbitrary power, they put themselves into a state of war with the people, who are thereupon absolved from any further obedience.” - John Locke
Jstanley01
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San Antonio, Texas
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When governmental legitimacy and the rule of law break down, all kinds of cockroaches are going to come pouring out of the woodwork. Some will be wearing badges, some won't.

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You can't cheat an honest man. ~P.T. Barnum
Fraudster
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Well, it appears Anonymous has gone to war with the NYPD. This from the site Karl is linking to in the video:



Anonymous going to war against the system:


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"Let China sleep, for when she wakes, she will shake the world." - Napoleon Bonaparte

"Circulation ceases first at the outer edges [Europe and Japan]. It will take a while yet for the decay to reach the heart [America]." - Foundation & Empire by Isaac Asimov

Reason: embed fix
Jstanley01
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Manhattan is an armed camp. http://tickerforum.org/akcs-www?post=194.... So is D.C. It's in the hinterlands where control will quickly become problematic.


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You can't cheat an honest man. ~P.T. Barnum
Digalert
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Seriously I fear the day our government-TPTB lashes in a Jack Nicholson fashion...
"YOUR DAMN RIGHT I ORDERED THE CODE RED!"
Only this time, will there be anyone to arrest them?
Blindskov
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What scares me is the double mind ****.

What if the bankers are actually directing "We are Anonymous." What if they know we are so ****ed, they are just going to scuttle the existing system and create the NWO.

If I was a crook, and I was going to create a new Government or economic system, I would trick everyone into thinking it was their choice that brought it forth.



.....there has to be a point in Government where you would want to scuttle the existing system and start over. Imagine magically hitting the reset button so you didnt have to pay on your obligations. A bankruptcy for Government. It would be the only way to prevent China from blowing us up to collect their collateral on our debt.
Mannfm11
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I think you have a good point Blindskov. I was thinking, if they go after the bankers, what is to stop them from going after what remains of middle and upper middle class America? I think the problem with bankers isn't so much bankers, but policies and procedures and fraud. Lets think if there isn't a better way? Maybe we should get the every day, average Joe, who had mutual funds and other ownership of shares in these bombs, who were looted like the rest of the country? Maybe these shareholders and former shareholders should sue their management, demand investigation and prosecution. Hundreds of billions, if not trillions of fake gains have been paid out as bonuses. People would balk at a 1% sales tax being levied in the US, but this is in essence what the bonuses of Wall Street and TBTF bankers amount.

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The only function of economic forecasting is to make astrology look respectable.---John Kenneth Galbraith
Peterm99
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Karl -

Great ticker! You've been knocking a lot of 'em out of the park recently. Too bad the *******s in DC still aren't listening.

Blindskov -

International law does not consider that a change in regime invalidates debts incurred by the previous government, so your scenario does not work.

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". . . the Constitution has died, the economy welters in irreversible decline, we have perpetual war, all power lies in the hands of the executive, the police are supreme, and a surveillance beyond Orwell’s imaginings falls into place." - Fred Reed

Reason: reword last sentence
Captainkidd
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Blindskov said:
Quote:
If I was a crook, and I was going to create a new Government or economic system, I would trick everyone into thinking it was their choice that brought it forth.


Or convincing them that any attempt to do so is nothing but tinfoil conspiracy theory.

"The greatest trick the devil ever pulled was convincing the world he did not exist."

************************************************

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A lawyer with a briefcase can steal more than a thousand men with guns. --Mario Puzo

It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning. -- Henry Ford
Kylafoon
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Zombie Portal Lookout
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We are approaching the point where the proliferation
of words has no meaning.

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"...But whenever we see things done wildly, but taken tamely, then the State is growing insane..." - Gilbert Keith Chesterton 1910

"I found a flaw in the model that I perceived is the critical functioning structure that defines how the world works." - Alan Greenspan, October 2008
Rickl
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Silver
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Quote:
the man with nothing left -- has nothing left to lose

"When you ain't got nothing, you got nothing to lose"

Can't resist quoting the Master. From 1965.

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We are so far past and beyond the “long train of abuses and usurpations” that the Colonists and Founders experienced and which necessitated the Revolutionary War that they aren’t even visible in the rear-view mirror.
~ Ann Barnhardt
Mo
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The pols are stupidly silent, aren't they?


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Welcome to Pottersville
Alex567
Posts: 145
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Quote:
We are approaching the point where the proliferation
of words has no meaning.


Blurtman
Posts: 563
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Banned
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Inline

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I have a reading comprehension problem and the owner banned me for repeatedly displaying it after being warned.
Bsfootprint
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Green
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I can't help contributing my fave quote about having lost everything:
Quote:
"It's only after we've lost everything that we're free to do anything."

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When I hear central bankers are blowing bubbles, I like to picture a large, happy and well-endowed male chimp named 'Bubbles'...
Etz
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The bankers' banker.

Where is that corrupt POS Greenspan who started all this???


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Legal chicanery and beneficent darkness are the banker's stoutest allies - F.Pecora.

Throxxofvron
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'Prohibitions' that do not apply to all Persons equally/universally are NOT 'the Law'; they are merely excuses contrived and utilized by Government for theft and violence against politically disfavored Individuals under the death shrouds of legitimacy and civility.

'The Law', like everything else in America; -is for sale...




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DIONYSUS: " Thou hast no knowledge of the life thou art leading; thy very existence is now a mystery to thee. " -from 'The Bacchantes' By Euripides “During times of universal deceit, telling the truth becomes a revolutionary act.” -George Orwell
Nocents
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'The Law' is free - you can download it here!

http://www.fee.org/pdf/books/The_Law.pdf

;)
Zappafan
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Atlanta
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Government's role boils down to three things:

1. Defend the borders and protect the citizens from external enemies
2. Defend the rule of law by prosecuting the bad guys
3. Promote social "welfare" by encouraging good behavior (note I mean good in a sense of that which is productive, not a particular religious definition)

That's it.

Note that "creating jobs" is not directly the government's responsibility. You could argue that number 3 kind of implies it, I suppose.

I'm not arguing necessarily that the government shouldn't try to do other things, but anything else is ancilliary and may in fact detract from 1-3.

When a government fails at one or more of it's core responsibilities, that generally means that it must be replaced either through the ballot box or more draconian means.

Either that or its citizens learn to live with a corrupt system (see Mexico.)

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Andyc
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That Wachovia story went by so quick I never even saw it until the "settlement" and I was reading this blog and many others that might tend to catch a story like that.

The same thing happened with that story about the Merril Lynch rouge trader

They just bury stories these days

Asimov
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Online
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It's justifiably immoral to deal morally with an immoral entity.

The only moral way to deal with an immoral entity is to thwart their plans at every opportunity.

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It's justifiably immoral to deal morally with an immoral entity.
If you trade based on what other people say, you will lose money. Especially what I say. I won't be held responsible. Festina lente.
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