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According to the Collins English Dictionary 10th Edition fraud can be defined as: "deceit, trickery, sharp practice, or breach of confidence, perpetrated for profit or to gain some unfair or dishonest advantage".[1] In the broadest sense, a fraud is an intentional deception made for personal gain or to damage another individual; the related adjective is fraudulent. The specific legal definition varies by legal jurisdiction. Fraud is a crime, and also a civil law violation. Defrauding people or entities of money or valuables is a common purpose of fraud, but there have also been fraudulent "discoveries", e.g. in science, to gain prestige rather than immediate monetary gain
*As defined in Wikipedia

Sunday, January 23, 2011

How Goldman Sachs Helps Keep the Economy in Limbo

In the following video, William K. Black presents some of the reasons why banks (and Goldman Sachs is one of those banks) are not being asked to pay the price for their unethical practices that culminated in the financial meltdown of 2008. He says that the accounting rules for banks were deliberately changed and these changes were supported by institutions of the government. This support helps explain why there is a lack of investigation into bank practices, and therefore, has resulted in no prosecutions. Even though the banks have $10 trillion in losses, there is no evidence of these losses on the banks' balance sheets.

The banks' balance sheets are actually underwater and the banks have more debt than they declare. Quantitative easing (#1 and #2) has thrown cash at the banks rather than the debtors. Covering up losses on these balance sheets leads to a slow recovery of the economy. The gimmickry of the accounting rules allows the banks to continue paying themselves mammoth bonuses and huge salaries. If the assets of banks like Goldman Sachs had been sold promptly after the meltdown, says Black, then the recovery would have taken place immediately afterwards.

Accounting practices should be cleaned up rather than permitted to exist in order to hide huge losses. Is the Federal Reserve promoting such accounting? The banks helped destroy the financial system and are now being supported by the political system and the highest reaches of the financial system.

See the video here


Anonymous said...

This says it all- and we (the American public)..have no one to BLAME...but ourselves!
Read it twice..let it sink in!!

Tavaokoli: No Need to Qualify - This IS a Massive Cover-up of a Control Fraud

"The bad guys have won, it's almost too late to find our food and wine (5 year statute of limitations for securities fraud). As you rightly point out, those who speak up like William K. Black are marginalized."

Anonymous said...

Unintended Consequences: How U.S. Tax Law Encourages Investment in Offshore Tax Havens*

I. Introduction.
In his one-and-only speech on tax policy, President Obama expressed outrage that
U.S. taxpayers could organize and operate foreign corporations in tax havens to reduce their U.S. tax liabilities, and vowed to shut down the “loophole.” However, the Obama Administration has dropped the very proposal that the President introduced that day, and has since introduced proposals that actually encourage U.S. taxpayers to operate through foreign tax haven corporations to reduce their federal and state tax liabilities.

The magnitude of deferred tax is stunning. By one estimate, U.S. companies currently enjoy deferral for at least $1 trillion in offshore
profits. Economists estimate that ending deferral would generate between $11 billion and $60 billion of revenue each year,which could be used to reduce the corporate tax rate by 1.5% (from 35% down to 33.5%). The deferral is concentrated in the health care, information
technology and energy industries.

Mz.Many Names said...

Thank you for posting all this great information....but WTF can we do about it?

Anonymous said...

Mz. Many Names, there are some things people can do, such as, get well-informed about what is going on politically and financially; use a credit union and not a major bank; agitate for representation without all that money being thrown around; don't depend on obtaining factual information solely from the mainstream media. That's a start but I see from your blog that you are probably doing all those things already.

Keep your ideals and never get discouraged that things can be changed.

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