Another report indicating that the Securities and Exchange Commission under the Bush administration didn’t do its job: SEC investigations that led to Justice Department prosecutions for securities fraud dropped from 69 in 2000 to just 9 in 2007, a decline of 87 percent, according to data compiled by a Syracuse University research group. The SEC also played an instrumental role in the credit crisis. In 2004, it eased long-standing regulations that limited the debt of big investment banks. The SEC also decided to rely on the investment firms’ computer models to determine the riskiness of those investments, and it spent little effort supervising the banks.
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27 Comments
Republicans are traditionally weak on crime, the fact the Bush regime aided criminals is no big surprise. Makes you wonder why the Eagle endorsed Bush.
I think the real enemy here is technology not bureaucracy.
Computers have become integral in most facets of our lives, including the handling of our monies.
This unfettered manipulation of investment has been allowed to run rampant throughout the world. Paper millionaires and stock portfolios exist in cyber world only to be switched off at a whim or a manipulation of data.
Junk in – Junk out. If one doesn’t even put data in, i.e. obscure the source, means or end, then the computer driven market is all sorts of fraud as we have seen.
Hysteria driven markets. This must stop. There is no reason that financial markets are driven by “chicken little Henny Penny’s.” It’s just stupid – stop the wild speculation, make it illegal.
Backed by nothing but air. This backing of investments, banking funds is just stupid. Let’s say you accumulate one million dollars and put it in your bank of choice. The bank fails and the federal government will only give you $100,000 of your $1,000,000 back, because that’s all that is insured.
Ask yourself, would you buy car or insurance like that?
Clip the wings of investors and their paper thin practices.
should read – car or house insurance like that
Each account is insured for $100,000… Why would anybody put $1,000,000 in ONE account??
The $1,000,000 should be put into 10 accounts.
Chas
Posted December 29, 2008 at 7:17 am | Permalink
Each account is insured for $100,000… Why would anybody put $1,000,000 in ONE account??
The $1,000,000 should be put into 10 accounts
————–
Sure, just don’t gain any interest.
Just goes to show that all the regulations in the world do no good if they’re not enforced. This is indicative of the way the Bush administration has operated over the past 8 years. Look at EPA and OSHA for further examples of regulatory agencies looking the other way to help out their big business buddies.
Big Business in and of itself isn’t evil; it’s just some of the people who get into positions of power in an un or under regulated environment.
“I think the real enemy here is technology not bureaucracy.”
The above sounds like it could have come from a manifesto by Ted Kaczynski. I suspect it is more the fault of humans. Especially those so-called humans who were Bush Cronies appointed to government agencies whose policies they detested and opposed.
43rd POTUS M.O.: Bush cronies start with the premise that government does not work, they set about to dismantle said government, and then when it does not work, they proclaim themselves as victims of their original premise.
Beautiful, great work if you can get it.
*****
“It’s just stupid – stop the wild speculation, make it illegal.”
Oops, that sounds suspiciously like regulation, maybe there is a place on the Obama Team for Regular. My question, if that is true, will we have to start calling him Regulator?
Regular
Posted December 29, 2008 at 6:24 am | Permalink
I think the real enemy here is technology not bureaucracy.
__________________________________________________
Reg, I’ve often questioned the use of “programs” for investing. The big institutions use them. They have triggers that sell or buy on certain criteria. Much faster than human input, but are they really good for the market? I suspect they hurt the small investor by taking advantage of economies of scale. If they sell when stock prices rise a few cents, their take is still huge if they control large blocks of shares.
Kind of leaves us small investors swinging in the breeze sometimes.
All of those stocks, etc., that Regular has bragged about must have taken a hell of a hit.
I know mine did. And I suspect I started a lot further behind that he was, thanks to an ex-wife.
Dennis
Yeah, the SEC…
“The Republicans”…blah, blah, blather, blah…”The Democrats”…
The records for Enron (along with, I’m sure, a lot of these bank numbers) were safely housed in WTC 7. Then 9-11 happened!!! (que Perry Mason music) WTC 7, housed many Federal offices, including SEC and FBI, CIA… you get the picture??
That building 7 WAS NOT HIT BY A PLANE, yet at around 5 pm that day, it fell neatly and symmetrically upon its own footprint at free-fall speed. If it hadn’t been mere coincidence, it would have been (to anyone within the controlled demolition’s world) A PERFECT IMPLOSION.
But most folks are completely incapable of thinking for themselves and see this as conspiracy theory crap.
And they are very right, only it’s not the conspiracy that they believe in (20 arabs out of a cave, circumvent our entire military apparatus and simultaneously wipe out documentation for what will soon-to-be major financial scandals.
The funniest part is that the BBC AND CNN were both calling the Salomon Bros. Bldg. (WTC 7) collapsed 20 minutes before it did AND WAIT THERE’S MORE!!!!!!!!!!!!!! They said it had collapsed while it was in the background of their camera frame!!!!!!!!!!!!!! HAHAHAHAHAHAHAHAHAHA!
Conspiracy theory indeed.
Best be for finding out the real conspirators.
SEC “didn’t do their job”. Since when does government ever “do its job”?
Even Greenspan admitted that after 18 yrs of supporting de-regulation, he’d made a mistake.
You won’t see bush admitting that.
What gets me is the talking heads on cnbc that say “The SEC gives a false illusion of security, and should be done away with”.
Shouldn’t put all your eggs in one basket, when you have foxes guarding the hen houses.
Bush was never too fond of the SEC ever since bush was doing his own insider trading. My firmest wish for the new yr. is that bush has lost as much in his blind trust as the average investor. Actually, I wish he’d had his ill gotten money in Madoff’s fund.
It used to be that the Republican Party was for EFFICIENT government; still allowing for regulation where needed. Their goal then was to make things work. Ever since Reagan the GOP mantra has been that government is fundamentally incapable of doing anything right. So, when they get in power they appoint people to make it so. (remember ‘hackofajob’ Brownie and FEMA?)
TWEEEET!
Phantom –
“Shouldn’t put all your eggs in one basket when you have foxes guarding the hen houses.:
Fifteen yard penalty for unnecessary metaphor roughness.
Thought it an apt mixed metaphor.
Cox had a financial background, so you can’s simply write the SEC’s inaction off to gross incompetence, they way you could Browinie and FEMA.
The owner of WTC 7 admitted the building was purposely destroyed. It looks like it imploded, because that’s exactly what happened. The reason? “Damage due to fire.” The truth is up for grabs on that.
*I think Silverman or something similar was the name of the owner.
Regular
Posted December 29, 2008 at 7:25 am | Permalink
Chas
Posted December 29, 2008 at 7:17 am | Permalink
Each account is insured for $100,000… Why would anybody put $1,000,000 in ONE account??
The $1,000,000 should be put into 10 accounts
————–
Sure, just don’t gain any interest.
—-
Regular _ I thought you were supposed to be so smart???
You still get interest on each of the 10 accounts.
Now if you’re talking about being greedy and wanting MORE interest – then that is your own fault and you take the risk knowing that your one account for a million is only insured at $100,000.
Why should the taxpayers insure your stupidity if you knowingly put in a million when only a $100,000 is insured?
…it eased long-standing regulations that limited the debt of big investment banks
This is at the root of the financial meltdown, over leveraging (I heard yesterday on meet the press, companies had 300 bucks leverage for every 1 buck of reserves, but it led to big gains for a while, and big bonuses).
The cds became the biggest ponzi scheme ever in recorded history.
#
mom
Posted December 29, 2008 at 11:33 am | Permalink
Regular
Posted December 29, 2008 at 7:25 am | Permalink
Chas
Posted December 29, 2008 at 7:17 am | Permalink
Each account is insured for $100,000… Why would anybody put $1,000,000 in ONE account??
The $1,000,000 should be put into 10 accounts
————–
Sure, just don’t gain any interest.
—-
Regular _ I thought you were supposed to be so smart???
You still get interest on each of the 10 accounts.
Now if you’re talking about being greedy and wanting MORE interest – then that is your own fault and you take the risk knowing that your one account for a million is only insured at $100,000.
Why should the taxpayers insure your stupidity if you knowingly put in a million when only a $100,000 is insured?
======================================
Not just individuals invest in stocks Mom.
There is a list of investors from universities to retirement funds.
I didn’t say that taxpayers should pay for it all, I said the insurance should be better and more equitable.
How much money do you think, let’s say, electrical workers contribute to an investment retirement fund? Wouldn’t you think they would like to see every last cent of their fund insured to the max?
Maybe the stupidity with your way of thinking and the status quo.
Ummm… R3egular?? I dont believe this conversation was about stocks, or retirement accounts… It began with your lament that an a ccount with $1,000,000 would only be insured for $100,000. I then pointed out that you merely separate the $1,000,000 into 10 accounts of $100,000 each…
Where are you now coming up with stock investments and retirement funds?? Nice try to change the subject… AGAIN…
#
Chas
Posted December 29, 2008 at 3:55 pm | Permalink
Ummm… R3egular?? I dont believe this conversation was about stocks, or retirement accounts… It began with your lament that an a ccount with $1,000,000 would only be insured for $100,000. I then pointed out that you merely separate the $1,000,000 into 10 accounts of $100,000 each…
Where are you now coming up with stock investments and retirement funds?? Nice try to change the subject… AGAIN…
———————
Where do you think the money goes that is accumulated from investments?
It’s all really non-existent monies anyway. That’s why it so easy for it to disappear.
Back to my original point, automation and computers can make yours or any corporations monies disappear in a blink of an eye because it can be manipulated so fast and hidden so deep, no one has time to look for it.
Hmmmm… if I have a CD for $100,000, it seems to me that the interest accumulated would not go into stocks, but add on to the original amount of the CD… or at least it should…
It was Larry Silverstien who was/is the owner of the WTC complex. On a 90 million dollar investment…he made a handsome 7 billion on insurance. What a stroke of good luck he had! And nevermind the fact that it takes weeks or months of planning and days of set up to implode a building (not 7 hours like it actually did).
Unless…the building was wired and ready to implode looong before any attack had actually occurred. The man’s a genius!
Nice writing. You are on my RSS reader now so I can read more from you down the road.
Jason Kenny