Monday, August 6, 2012

Who Can Take This System Seriously?

Over the past 15 years we have seen the most massive deregulation of financial oligarchs in civilized history.  During the same period, any non-oligarch entrant into the finance world has discovered that life in a super-max prison would be less restrictive.  Financial oligarchs do what they want when they want.  When trades go their way they win.  When trades go against them they have them reversed.

Compare this record to your own results during the volatile first quarter of 2012.
So naturally when the oligarchs install their handpicked watchdogs to squelch any entrepreneurial spirit we may mistakenly exhibit, we are skeptical.  Let's not forget the track record of these trusted public service.  While they vigorously attack anyone attempting to challenge the established financial class they have somehow missed these events which caused immense real pain to the populace they claim to protect:
  • Bernard Madoff $50bil scheme owned few actual assets as he served as NASDAQ chair
  • Alan Stanford $7bil investment scheme
  • MF Global over $1.6bil of segregated client cash stolen no charges filed
  • PFG Best $220mil of segregated client cash stolen while firm owner chaired regulator board
  • 453 US bank failures since 2008 and the list grows
We say all this to illustrate the point that today's Financial Times headline is hard to take seriously.
Consider Kwan Box comrade in arms Bill Murphy's statements before this same CFTC panel in 2010.  Your editor has known Bill for some time and this is a mere fraction of the evidence he delivered to the commission.

As long as connected parties are allowed to sell the market short without borrowing physical metal, regular investors don't stand a chance.  The mob captains running these markets have hand-picked their watchdogs and the interest of the public are secondary.