Discrimation Amongst Rich Criminals

The judge in the bail hearing of Sarasota, Fla. hedge fund manager Arthur G. Nadel, has agreed to release Nadel on $5 million bail. However, the arrangement further requires $1 million in cash and the bond must be supported by four "financially responsible people" without a financial connection to the case or to Nadel or his former company.

Nadel,who is charged with one count of securities fraud and one count of wire fraud in a case involving allegedly defrauding investors out of $300 million, is likely to be unable to meet the bail, according to his attorney.

Meanwhile, in Manhattan, Bernie Madoff, who faces similar charges, involving alleged defrauding of investors out of $50 billion, sits comfortably in his $7 million apartment with only the discomfort of an ankle braclet.

And of course somewhere in Florida, a man sits in jail awaiting trial on theft of a six pack of beer, from a local convenience store.

I believe Goddess Liberty, or Lady Liberty if you prefer, is wearing her blindfold in front of courthouses across this country because she can no longer bare to see what justice has become in America.

First published February 27, 2009

© 2008 Seravat Writers Group LLC

Alan "Greedspan"

For those who haven't seen the CNBC David Faber documentary, "House of Cards" or the Frontline "Inside the Meltdown" produced by Michael Kirk, you need to.

Both programs take the time to explain in clear concise terms the undisputable facts of how the banking crisis occurred.

All the rest is just excuses and babble.

When one hears former Federal Reserve Board Chairman Alan Greenspan matter-of-factly says, "...it wasn't that these people were dumb, they knew precisely what was going on, the vast majority of them thought that they knew when to get out. It was a failure of our best and brighest."

Then there was this exchange:

Faber: "These were not poor decisions, these were the worst decisions that financial executives have ever made. Greed runs through this."

Greeenspan: "Absolutely. And your going to pass legislation which is going to outlaw that? Try it.

Faber: "You still firmly believe in the power of free markets?"

Greenspan: "I firmly believe that because I know of nothing in the evidence of the alternatives."

This acceptance by Greenspan, who once admitted not understanding the complexities of the details of how high-risk bundled mortgages could receive triple AAA ratings by Moody's and other rating services speaks to the fundamental problems with an unregulated financial mechanisms.

The trillion-dollar mortgage business was one such mechanisms.

Court documents in the conviction of a Countrywide loan officer in Florida state that when one borrower could not afford a home because of inadequate income, a photo of the man standing in front of his sole proprieter business pickup truck was all the branch manager required to approve the high-risk loan.

Another borrower, a housekeeper, was given a $500,000 plus loan and told to get a couple of renters to live in the spare bedrooms to make the interest only payments.

There are millions of examples of this greed by loan officers, some of whom acting as "salesman" had no formal training.

When Greenspan sarcastically asks if we are going to "legislate that"(greed).

Perhaps we should take his challenge and "try it."

You Do Not Exist

FLORIDA FOLLOWS NEW RULES FROM HOMELAND SECURITY REGARDING ID - DOES IT HAVE FLAWS - WELL YES, A FEW.

Here are the new rules as released by the Sarasota County Tax Collector Barbara Ford - Coates:
"Florida now requires additional documents for people renewing or obtaining their Florida driver license or identification card, according to Sarasota County Tax Collector Barbara Ford-Coates. The changes are required to bring Florida into compliance with the Department of Homeland Security’s Real ID act.

To renew or obtain a license or identification card, residents must now have:

• Two proofs of residence such as:

• Deed.
• Monthly mortgage statement.
• Residential rental/lease agreement.
• Utility hook-up (or work order) dated within 60 days of the application.

Minors, students, or others without those documents can use school related information.

• Proof of your Social Security number such as:

• Social Security card.
• Tax return.
• W-2 form.
• Pay check stub.
• DD-214 (military discharge document).
• School record.

To get a license or identification card for the first time residents also must have:

• Two proofs of identity such as:

• Valid passport
• Out-of-state driver license
• Original or certified birth certificate (name on each document must match exactly or be accompanied by an official marriage certificate or court order)

Minors also may use a written statement from parents.

Non-U.S. citizens must provide additional documents such as:

• Valid permanent resident card.
• Employment authorization card"

Hey Charlie and his friends over at the Department of Motor Vehicles:

Do you people think these things through before you put out this stuff.

For example, likely tens of thousands if not higher number of people are ineligible under the "two proofs of residence." What if they rent an apartment or motel room that has all utilities included so therefore the only one of three options they have is a "residential rental/lease agreement"

As far as the third item, first time residences, well everyone should have or could get a birth certificate. But suppose you didn't have a drivers license in the other state because you are handicapped and don't drive or just didn't want to own a car. And if you never travel to countries that require a passport why would you have one.

Therefore many first-time residents will have only one on the two forms of "proof of identity," their birth certificate.

Really Charlie doesn't anyone proof read this stuff before they issue it as policy.

Bureaucrats gone wild, again.

First published February 17, 2009

© 2008 Seravat Writers Group LLC

Is justice coming?

Perhaps we will come out of this self-inflicted recession soon.

What then?

Do we go back to the same market economy that mutated in the 1980s into a system based on the pressures of ever greater- quarterly profits, constantly rising stock prices, salary and bonus systems for CEOs and upper management based on short term thinking and profiteering?

If banks, auto manufacturers and others realize they can get all the money they need from the U.S. taxpayer if they screw up. Why not start the same flawed practices that made them record profits before the downturn?

Any 18-25 year old whose parents bail them out learns that lesson.

So shouldn't we be planning now to mandate government regulations to control the practices and procedures of corporations gone wild?

According to Rep. Barney Frank (D-Mass.) and Chairman of the Financial Services Committee, the President is planning to do just that.

The NYSE and other exchanges, the pro-business, anti-labor commentators on CNBC and CEOs will be all over the media threatening to hold their breath, scream and roll around on the floor when these controls are announced.

Larry Kudlow will have documented proof that the sky will fall.

If corporate America is so opposed to government regulation that actually works perhaps they should calm down first and eat a peanut butter and jelly sandwich, to calm their nerves.

Or perhaps they could have a "retention award." That would calm them down.

The problem for corporate American right now is that once again they screwed up so bad that everyone can see them running around naked with nothing but their crown on.

The difference this time is the "barbarians" as they would call working people, are paying attention and they voted in record numbers.

And uh oh, really bad news, this time Spartacus has made it to the throne.

Oops. Time for those CEOs, Hedge Fund managers and investment gurus, (we out here called them felons) to run to their offshore banks, make a withdrawal and head for their villas in countries that have no extradition treaties with the U.S.

Hey Bernie, can you spare a dime?