Thu, Jul 1, 2010, 10:18PM EDT - U.S. Markets closed
Meanwhile, the Democrats are still trying to salvage the regulatory reform bill, with critical support from Senator Scott Brown (R-Mass.) reportedly still uncertain.
According to Howard Davidowitz of Davidowitz & Associates, what connects the hearings and the Reg reform debate is the lack of focus on the real underlying cause of the financial crisis: Fraud.
"It was a massive fraud... a gigantic Ponzi Scheme, a lie and a fraud," Davidowitz says of Wall Street circa 2007. "The whole thing was a fraud and it gets back to the accountants valuing the assets incorrectly."
Because accountants and auditors allowed Wall Street firms to carry assets at "completely fraudulent" valuations, he says the industry looked hugely profitable and was able to use borrowed funds to make leveraged bets on all sorts of esoteric instruments. "Their bonuses were based on profits they never made and the leverage they never could have gotten if the numbers were right - no one would've given them the money in their right mind," Davidowitz says.
To date, the accounting and audit firms have escaped any serious repercussions from the credit crisis, a stark difference to the corporate "death sentence" that befell Arthur Anderson for its alleged role in the Enron scandal.
To Davidowitz, that's perhaps the greatest outrage of all: "Where were the accountants?," he asks. "They did nothing, checked nothing, agreed to everything" and collected millions in fees while "shaking hands with the CEO."
Who should be surprised. Wall Street runs the USA and they will be in the drivers seat as it crashes.
Line up.....I hate wasting bullets.
Banksters Bailouts r a massive fraud... a gigantic Ponzi Scheme, a lie and a fraud," AGREE!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!1
Obama is the sucker #1 of the world. Helping banksters with us citizens money!!!!!!!!!!!!!!! WOW, live it for belive it! Obama, worst us pres ever!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Sure, blame the accountants. Why not blame global warming.
Look what the idiots at the FED are doing with our money! "Federal Reserve Chairman Ben S. Bernanke and then-New York Fed President Timothy Geithner told senators on April 3, 2008, that the tens of billions of dollars in "assets" the government agreed to purchase in the rescue of Bear Stearns Cos. were "investment-grade." They didn't share everything the Fed knew about the money." http://www.bloomberg.com/news/2010-07-01/fed-s-maiden-lane-made-taxpayers-junk-bond-buyers-without-congress-knowing.html
At least somebodies got it right... :(
It's known as, "The banality of evil." All the little eichmanns in bespoke suits that pimp for the Wall Street casino and the Washington war machine are more than happy to sell out their country and their fellow Americans for a fat bonus, a trophy wife, a suburban manse with a pool, and a fleet of lux mobiles. Basically, these people are devoid of imagination, all playing follow the leader...in a word, they're fascists. Historically, a group mind's grandiose delusions will carry them for about twelve years before it blows up. We only have a couple of years to go.
i love this guy (davidowitz)
http://www.metatube.com/en/videos/35765/Wells-Fargo-Financing-Mexican-Drug-Cartels/
We, the working class know all this. Only the rich and Gov't workers matter at this point. We will work our whole live to better there's. Teachers going out at 50, CEO's making more money in a year than I will make in a life time. Priceless
He's right it's massive mortage fraud. They lend money to anyone because they made their money selling the debt as a CDO!!! Is anyone in jail?
This guy has it right
yup. and when you add in the tricks they all play at the end of the year in taking bad assets off their books...and the rediculous way banks state their assets + the rediculous reserves, well...wait for the 4800 dow.
It was ALL manipulation that got out of the Dems control as they tried to destroy the Booming economy that Bush had going.... Just to get the Worst prez Ever elected!!!! And they aren't going to allow a full blown crash.... not at least until after the second week of Nov.. But Now we have the Repubs trying to cause a crash to make the Worst Prez Ever look even Worse And get Repubs elected in Nov.... Unfortunately the Dems are Much better at this game, because they Truely don't give a damn about Anything or anyone but their own pockets. Vote out Everyone that vote for the Stimulas, Healthcare, GM and TARP!!!! Then Impeach the worst Prez EVER!!!!
We build a culture that has only one moral directive -- gain as much wealth as you can. Being rich and having lots of things is the only goal we promote and we promote it loudly, clearly, and often through every possible venue. Now we're surprised and outraged that the Wall Street dudes took us seriously? Puhleeze, folks, stow your indignation. We are all responsible for this mess. Hmm. Maybe it's time to rethink what's important and restructure our message. Just a thought.
U r great Davidowitz!!!!!!!!!!!!!!!
Having Howard Davidowitz on Tech Ticker ans asking him what he thinks about Obama would be like having Atilla the Hun on and asking him what he thinks of Italy and Italians. The guy's a brutal know-nothing thug in a suit. It's funny how someone who's essentially a retail analyst studying the balance sheet of companies like Macy's is now considered some sort of political expert. All you need to be considered a political expert in this country is to make a lot of money. Why don;t you start having Brittany Speard on the show, Tech Ticker, or Lady Gaga. The only criteria seems to be wealthy and a deep hatred for the Democratic party. By that definition, you should exhume Reagan's corpse, implant a microphone in its mouth and have it spout, "I hate Obama. Democrats are bad." every five minutes. Try having one truly liberal guest from the other side of the spectrum just once your freaking myopic life, Aaron Task. This guy's as tired as old Punky Brewster episodes.
Having Howard Davidowitz on Tech Ticker ans asking him what he thinks about Obama would be like having Atilla the Hun on and asking him what he thinks of Italy and Italians. The guy's a brutal know-nothing thug in a suit. It's funny how someone who's essentially a retail analyst studying the balance sheet of companies like Macy's is now considered some sort of political expert. All you need to be considered a political expert in this country is to make a lot of money. Why don;t you start having Brittany Speard on the show, Tech Ticker, or Lady Gaga. The only criteria seems to be wealthy and a deep hatred for the Democratic party. By that definition, you should exhume Reagan's corpse, implant a microphone in its mouth and have it spout, "I hate Obama. Democrats are bad." every five minutes. Try having one truly liberal guest from the other side of the spectrum just once your freaking myopic life, Aaron Task. This guy's as tired as old Punky Brewster episodes.
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