The failure of Lehman Brothers was the one bright spot, success story for the free market in the 2008 denouement. A bank failed. That is what is supposed to happen when bank managers play fast and loose. But all other big banks were bailed out.
There were very many mischievous scams being run by the managers Lehman, but let's look at one "bridge too far..":
Except....
Want a huge list of ways to scam investors without going to jail..? check it out, the law of the land.
When you are brainwashed into thinking the problem is "free markets" or deregulation or no regulation then when you agree there is a problem as defined by your enemies (deregulation) you trap yourself into accepting their solution: re-regulation. You'll never find a banker making a move without a specific provision in the regs. When their system fails, they blame the free market, and simply write more regulations, because you demand it.
Stop demanding it. Deregulate. Stop giving your oppressors the rules to cover their oppressive tactics. Deregulate banking and the financial industry completely, and let those huge banks fail, and community banks re-emerge.
Feel free to forward this by email to three of your friends.
There were very many mischievous scams being run by the managers Lehman, but let's look at one "bridge too far..":
... a typical example of rehypothecation, securities that have been posted with a prime brokerage as collateral by a hedge fund are used by the brokerage to back its own transactions and trades. While rehypothecation was a common practice until 2007, hedge funds became much more wary about it in the wake of the Lehman Brothers collapse and subsequent credit crunch in 2008-09.So there is money, and then there is lending money, then there is lending money at fractional reserve, the fractional reserve part being credit, but asset-based (yet inherently fraudulent), then there asset-free credit lending, then there are secondary market instruments based on hypothecation of potential value (conflict of interest self-serving assertions), and then there are instruments based on hypothecation, called re-hypothecation. Acid-trip valuations. Those rascally bankers! See what you get with no regulations, or as people say, deregulation?
Except....
In the United States, rehypothecation of collateral by broker-dealers is limited to 140% of the loan amount to a client, under Rule 15c3-3 of the SEC.Whoa! A regulation for making money off imaginary sand castles in the sky! What could go wrong? Bankers don't like to go to jail. So whenever they come up with a crazy idea, they go to the SEC or whatever other "watchdog" and get a rule introduced to provide for their criminal idea. (And this is not only the SEC, all USGoverment "watchdog agencies" are owned by the industries they watch. All regulators are captured by the big business regulated.)
Want a huge list of ways to scam investors without going to jail..? check it out, the law of the land.
When you are brainwashed into thinking the problem is "free markets" or deregulation or no regulation then when you agree there is a problem as defined by your enemies (deregulation) you trap yourself into accepting their solution: re-regulation. You'll never find a banker making a move without a specific provision in the regs. When their system fails, they blame the free market, and simply write more regulations, because you demand it.
Stop demanding it. Deregulate. Stop giving your oppressors the rules to cover their oppressive tactics. Deregulate banking and the financial industry completely, and let those huge banks fail, and community banks re-emerge.
Feel free to forward this by email to three of your friends.
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