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Where is the "Balancing Gyroscope" Mechanism in Our Financial System?

Location: Blogs Bud Burrell - Front and Center    
Posted by:   bburrell 7/2/2006 4:16 PM

Since this country was founded in 1776, we have seen political and criminal abuses of our system that have come and gone with some near absolute regularity.  If we allow for the first hundred years of our history as being a learning curve, then what should we have learned from the last 100 plus years?

It seems that the scale and breadth of our systemic frauds have escalated at an ever increasing rate, with the current crises surely dwarfing the frauds of the past, and reaching out into global environments.  It was a characteristic of our form of Democracy that, like the swing of a pendulum, the most egregious abuses would be addressed, generally after the fact, with the most serious felons getting less severe punishment than that called for by our Laws. 

It seems now that this internal natural balancing mechanism is now simply broken, hopefully not so badly that it can't be brought back into operation.  If it can't be restored to operation, then our system of Government will implode, caving in on itself in a catastrophic collapse of unimaginable force and destructiveness.

Our system has been previously called into motion by actions so terribly offensive, they could not pass a smell test, and/or threatened the control of the power elite of the masses.  It seems that each time we have such a crisis, each crisis much greater than the last, that the system takes longer and longer to respond, with greater and greater risk to all, and not just the man in the street. 

I never saw a quick or painless resolution to this morass, but I will now go out on a limb and say that whatever is going to happen will face us within two to four years.  I will also say that each of us must fear something much more ominous than a simple financial meltdown.  Too many have been hurt too severely by too few for the few to get only a slap on the wrist, or some asinine forfeiture of a non-material portion of their wealth. 

If we have any leaders left in our nation, they must address the issues extant now, or lose much more than their power to influence events through a political system that may no longer exist, much less retain any credibility.  Every day that goes by, this gets more offensive, and at some point, the pond scum in this equation may create the modern political equivalent of a Black Plague. 

Someone must restore the "Political and Moral Gyroscope" to our system, or see it destroyed.  While I hoped I would not live to see this, I am now at the point that I think my age and health are no longer material.  If we don't find the gyroscope, we deserve to be destroyed.  We in this country are losing, have lost, or never had our moral compass, and we now belittle the very values that this country was built on.

I see no middle ground on this, and it is the nature of non-governmental responses to serious wrongs to be highly extreme.  Those responsible for these moral vicissitudes must ultimately answer to God, and failing that, the more terrible justice of the Mob. 

Nothing short of a massive eruption of Mt. Rainier will give any pass to the amoral scum sociopaths in this country. 

The leaders in this country in all sectors need to wake up and smell what they are shoveling.  Their wealth and power alone will not save them. Everyone must make their leaders accountable, now, not later.  Once this monster raises its head, it will be too late to fix this mess until the monster is satiated.

 

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Comments (19)
Re: Where is the "Balancing Gyroscope" Mechanism in Our Financial System? By old duffer on 7/3/2006 9:11 AM
two states of man were forcast for these times i believe we are living in.

1.as it was in the time of sodom. you know what they were known for.

2. as in the time of noah. lawlessnes and terrorist did violence.

God help us and our Country!EOM
Re: Where is the "Balancing Gyroscope" Mechanism in Our Financial System? By rtway1 on 7/3/2006 1:06 PM
I applaud you on putting in words the very summation of my feelings. We have a moral deficit that is so out of control that the only people that can see it are those that have seen what a broken system looks like. feels like, and have lived through all the excuses that tried to cover up the corruption that caused the meltdown. We are living in a society that awards those with the best scams and formulas that are created to confuse the average citizen or lawmaker or enforcer of our financial markets. Never in our history have I seen the press or media used as a pawn for monetary gains as today. In our countries history we never had the experience of instant news or distortion of news and the ability of foreign business our countries using our system to their gains by illegal activities in our market system. More disturbing is that some of our populace aid and facilitate these activities for a monetary gain while putting their country and their futures and their childrens futures and security in peril. I like you Bud are at the autumn of the journey and have pretty much lost hope on a generation of patriots who wish to reclaim their country instead of creating a bigger altar to their god of money. I bleive also our time is running short before we see a catastrophe of epic proportions. Greed is the new god and morals are a anchor on the new society. Thank God we lived at a time when life was a honest challenge and people were a blessing instead of a mark.
Re: Where is the "Balancing Gyroscope" Mechanism in Our Financial System? By Sean on 7/3/2006 1:06 PM
Bud, Iam now seeing the mass corruption that you have been talkin aboutt for years come to fruition. We are noe getting the mainstream press to notice this and Whistler Blower(s) are now comming forward. What more is it going to take for people to see this realit. Aaron Russo's Freedom toAscism would also be another good point of knowledge for all of your blog readers. I saw the Corporation and that too was an eye opener. Thanks for this blog I hope people read it and understand the trouble that we are in!!
Re: Where is the "Balancing Gyroscope" Mechanism in Our Financial System? By dave on 7/4/2006 8:45 AM
Read my posts in Bobo's column.

I think it is less than 500 scumbags and this problem is very fixable. Just because the scumbags own media, brokerages, politicians, regulators and a sports team doesn't mean that they are more than 500.

A handcuff fits on a super elite scumbag's wrists as easily as it does on a common thief's.

These are a group of people that we can systematically have incarcerated.

Name by name, we need to expose the actual people that are responsible for the massive counterfeiting of public company shares.

On the 4th of July, we have to remind ourselves of the sacrifices our ancestors made to give this country to US! (intended)

This country belongs to us and it is about time that the victims gathered together to extricate the criminal bullies that laugh as they steal from us.
Re: Where is the "Balancing Gyroscope" Mechanism in Our Financial System? By bburrell on 7/4/2006 8:55 AM
I think you estimate of 500 might be right if you were talking about "Units" or "Pools", but it is certainly much larger in terms of the number of participants. There are well over 10,000 International Hedge Funds working with an unknown number of offshore brokers and IBC's. At last count, there were some 8000 known offshore brokers with clearing arrangements with brokers in the US, Europe and and Canada.

One reference point to remember is that there were 500 pools/syndicates operating in the raid/crash of 1929, the majority under the control of such parties as Kennedy and Baruch. Roosevelt was very nearly impeached for naming Kennedy the first head of the SEC. I would reference just regular linear growth, and get to over 5000 such entities today, under the guidancel of 20 or so controllers. I look at the Berlin listings, and they were established by just 10 parties led by three predominent players in the placement of these listings, whose names are openly on the Web.
Re: Where is the "Balancing Gyroscope" Mechanism in Our Financial System? By daven on 7/4/2006 2:04 PM
If look at someone like Mark Valentine, though, he controlled thousands of IBC's and bank accounts. Estimates are that he took in between $500 million and $750 million personally.

I think there are fewer criminals controlling the strings than one might think. I know a lot of hedge fund managers that are quite honest, doing legitimate long and short buys. It isn't that easy to naked short unless you have the right connections.
Re: Where is the "Balancing Gyroscope" Mechanism in Our Financial System? By cynical_european_spectator on 7/5/2006 6:15 PM
They cannot afford to see their ways discovered and judged. That would hurt them and kill the source of their profit.

I rather see the overall attention diverted by a catastrophe of huge magnitude, in the tune of 911, that will give them an alibi to collapse the markets, making the cleaning up of the crime scene possible (i.e covering of all naked position at a minimum cost). By then any speech on NSS will look irrelevant compared to what will flood from every media that we know are conveniently part of the scheme.

Another cycle will start from scratch, they'll reverse the technique going long for a couple of generations and repeat the trick when facts will have faded in the collective memory .

Your country is a casino where the mightiest would kill to be on the right side of the fence in a zero sum game that is based on the existence of volatility. When volatility doesn't happen in a natural, random way it needs to be caused, simple isn't it?.

Bobo and all, you're doing a wonderful job that deserves admiration and praise but causes like these require more than a column in a blog and justice can be slow to death (hardly a word's game rather a cynical wink, see Ken Lays' story) when the mighty don't want discovery to happen. Your side is the right one, but it's also the weaker because of this very reason, it's the Right One and you play by the rules against crooks who master the game and cheat when they feel it's cheating or losing.

For a scandal to come under the spotlight there must be huge potential reward to parties at least as mighty as those the scandal would bring down. I see none in this instance.

Sadly, this is a kill or be killed game and I see too much a naive stance in the anti NSS side.

Sit back, relax, and enjoy. The movie is about to begin: on schedule "Wag the Dog"
(http://en.wikipedia.org/wiki/Wag_the_dog)
Re: Where is the "Balancing Gyroscope" Mechanism in Our Financial System? By ckza on 7/6/2006 7:32 AM
Who will begin to "name the names" beyond any shadow of doubt?

Sometimes, I see the innuendos surrounding names like Icahn, Soros, Cuban, etc. but so far as I can comprehend, nothing has real teeth yet.

In a street fight, we must be willing to BITE the other GUY's EAR off!

You gentlemen are as bright and capable as these dubious practiitioners, so shine the LIGHT on these cockroaches and crush them with your feet.

I am concerned that, cynical_european_spectator on, may be SPOT ON, but I am expectating that, you boys knew everything that he says in advance.



Re: Where is the "Balancing Gyroscope" Mechanism in Our Financial System? By bburrell on 7/6/2006 7:32 AM
ckza,

You need to search the Web more thoroughly, as all the names are already out there, with real teeth.

Time seems to have blurred the stories, but they are still alive, whether in relation to the Berlin listings, Ladenburg, Laurus, etc.

The names of the responsible regulatory officials are out there too. They can run, but they can't hide.

This is now just a matter of time, a case of when, not if.

I said that on 3/3, and I stand by it.
Re: Where is the "Balancing Gyroscope" Mechanism in Our Financial System? By mhatmccane on 7/6/2006 7:58 AM
The only hope I see are the States and NASAA. The SEC is worse than useless and serves only as a bad example and a reflection of Big Government run amok. They are the financial counterpoint to the Federal response to Katrina-millions wasted with no recovery and no real thought for the victims.
Re: Where is the "Balancing Gyroscope" Mechanism in Our Financial System? By daven on 7/6/2006 10:09 AM
Let's force the bastards to cover BEFORE they get a chance to crash the market like they did in 1929.

The light of day is a cockroach's worst enemy.
Re: Where is the "Balancing Gyroscope" Mechanism in Our Financial System? By bburrell on 7/6/2006 10:12 AM
Everyone should read the Mathew Gladstein article today, calling for the dismantling of the SEC.

This follows a similar call from another New York Post journalist. This is a break in the ranks of the formerly unified media community.

The article calls the SEC an ananchromism, and this is an understatement. The SEC must be broken up into a least two unrelated entities, reporting to the DOJ for enforcement and to the Treasury for Market Regulation.

This is again just a matter of time.

Best, Bud.
Re: Where is the "Balancing Gyroscope" Mechanism in Our Financial System? By ckza on 7/6/2006 11:53 AM
At the state level, where's Arnold on this matter?

Has California's economy, unbeknownst to me, somehow benefitted from this gutting of American corporations?

I had thought that Warren Buffett was both his friend and advisor. Even if Warren chooses to remain silent publicly about these inequities, Arnold must be intimately aware of the facts surrounding Patrick's Jihad, which includes the rest of you freedom fighters that is being waged against Wall Street.
Re: Where is the "Balancing Gyroscope" Mechanism in Our Financial System? By Sean on 7/6/2006 2:47 PM
Bud, could you please provide a link to that M. Gladstein article please. Thank you in advance!!!
Re: Where is the "Balancing Gyroscope" Mechanism in Our Financial System? By bburrell on 7/6/2006 2:47 PM
It is on today's Lipper's Hedgeworld Alternatives page, which I have already deleted. This is a free service I recommend to all.

You should find it straight away, possibly with a Google Search on "Mathew Gladstein Dismantle SEC NY POST"
Re: Where is the "Balancing Gyroscope" Mechanism in Our Financial System? By ckza on 7/7/2006 10:51 AM
O.K. After some pondering, I'll take a wild guess at my own question. Is it possible that Arnold would find it taboo to direct California's AG against Wall Street consdering the Kennedy blood line that his wife comes from?

Has Arnie turned into a GURLY man on this issue as a result?

Otherwise, he must be pre-occupied with the California real estate bubble that, has sustained his economy courtesy of the aiding and abetting of Chinese and Indian traders.

He loves real estate, I have heard. That must be why he threatened push ups to Warren over the Prop 13 issue which remains the "gold standard" notwithstanding its inequities.

I am disappointed that the "Pumping Iron" man is SOFT WOOD surrounding the financial terror taking place on Wall Street. One might think this would be a great topic for him to establish more credibility amongst his citizens during an Election year.

Maybe Phil is a better candidate for Governor in November. If I recall correctly, he was at least partially visible, as respects the "mutual fund" scandal, and the losses that resulted to state pension funds.

Hmm, for that matter, where is Phil on this important issue?????

Re: Where is the "Balancing Gyroscope" Mechanism in Our Financial System? By bburrell on 7/7/2006 10:25 AM
ckza,

You may not be aware of it, but California imposes a "Flip" Tax on ALL Real Estate sales of 25% versus basis.

This has been an enormous boon to the State of CA, and without it, or a slow down in its growth, CA would be upside down even more than anyone can imagine.

Phil is, unfortunately, another economic illiterate Democratic candidate. No one from his party will ever be trusted again, unless they are already enormously wealthy. Grey Davis was a caricature of a for sale sleeze bag, in a State that is legendary from Alan Cranston, to Willie Brown, to Davis, all part of common long line.

Any Governor of CA that is not pro Real Estate is a walking dead man. Arnie understands that. At least he is too wealthy to be bought, by anyone. I am not concerned about his Shriver links. If anything, he is the only Kennedy clan member who will ever be a possible President again.

Best, Bud.
Re: Where is the "Balancing Gyroscope" Mechanism in Our Financial System? By Sean on 7/11/2006 7:54 PM
Bud, this sound like he read your thesis!!LOL Please read this article.
http://www.forbes.com/columnists/2006/07/11/leadership-harve-pitt-cs_hp_0711coveringupnakedshorts.html
Re: Where is the "Balancing Gyroscope" Mechanism in Our Financial System? By bburrell on 7/11/2006 7:55 PM
Sean,

The quote is too close to be accidental, one I first used in 2003, and again since then, without ever seeing anyone else use the analogy until recently.

I noticed it, believe me.

Best, Bud.
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