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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: loantech who wrote (101134)	2/11/2009 12:11:46 AM
From: Little Joe	11 Recommendations Read Replies (1) \| Respond to of 110194

No Tom. It has been my experience that this is how it works. Typically regulators never go after the big crooks, they have bought off the pols. Regulators spend most of their time regulating the little guy who is not a crook and just trying to do business. Look at Maddoff it was presented to them on a silver platter and they didn't bother to look at it at all. Of course look at who he contributed to. When I worked as a lawyer for Baltimore City years ago. I saw this many times. It worked this way. So & so who was a crook but well connected would get outed by the press. The unwritten law is that we don't mind if you lie, cheat and steal from our constituents as long as it doesn't make the press and cause us to be embarrassed. Of course once the scoundrels were exposed in the Newspapers or however, the Politicians have to do something so they pass new laws and new regulations which impose burdens on people who had nothing to do with the problem but now must incur additional costs, because the pols must be seen as having done something so that "this never happens again". Ridiculous. If they did their job in the first place it would never have happened. The problem in most cases isn't the need for more regulations it is regulators who are competent to do their jobs and are allowed to do so. If you translate my experience to our current crisis. It is obvious that regulators were pressured not to purse certain matters as the result of political pressure applied by pols who were receiving large contributions from the big guys. There will be a host of hearings and more stupid and costly regulations imposing costs on honest people so that congress can be perceived as doing something so that it "never happens again" which of course it does over and over ad nauseum. Do you think Barney Frank, Chris Dodd, Cox, and the administration really didn't know what was happening in the mortgage market? Hell they were the cheerleaders for it. They could have stopped it but that would have terminated the payola to their respective political parties. So they feign outrage, pass burdensome regulations and the natives are happy again, blissfully unaware of the costs that have been imposed upon the economy. And to end my rant. Guys like Rubin who should be in jail and Geitner who sat silent end up in the administration of a supposed reformer. Give me a break. lj