Post Reply 
 
Thread Rating:
  • 0 Votes - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
This Is One of the Biggest Wall Street Frauds Ever... My bet? Heads will roll.
02-27-2010, 01:23 AM
Post: #1
This Is One of the Biggest Wall Street Frauds Ever... My bet? Heads will roll.
This Is One of the Biggest Wall Street Frauds Ever...

By Porter Stansberry:

February 26, 2010 "S&A Digest"- February 25, 2010-- One of the best lessons I've learned over my career as an investment analyst is the myth of excellent management or "great execution" is really just that – a myth.

When I see companies in troubled industries reporting quarter after quarter of great results, while all of their peers are getting killed, I know a fraud is going on. I remember in the early 2000s, WorldCom kept reporting profits when all of the other long-distance carriers were getting killed. I knew it couldn't last. And it didn't. WorldCom's accounting was revealed to be a fraud – the company was counting its network access costs as capital expenses. Once the real numbers came out, the company collapsed in what was the largest bankruptcy in American history at that point.

About three years ago, I saw Goldman Sachs reporting quarter after quarter of unbelievable results when all of the other investment banks were hurting. I spent a lot of time looking at its numbers – which didn't make any sense. It reminded me of Enron. It kept reporting bigger and bigger profits, but lost more money every year in cash. And its debt balances kept growing.

I wrote a lot about this in The Digest, but I never officially recommended shorting Goldman in my newsletter because I literally couldn't figure out how Goldman Sachs was doing it. I couldn't find the smoking gun... but I knew a giant fraud would be discovered there, eventually.

In October 2008, I figured out part of the big secret: Goldman had insured all of its subprime exposure via AIG. This allowed it to book huge profits on its subprime investments long before they were actually paid off because the bonds were insured. Of course, it was all a sham – AIG didn't have nearly enough money to pay off any of the insurance. (See the October issue of PSIA for more details.) A source close to the company even told me how big the exposure to AIG really was – $20 billion. That's roughly 100% of the profit Goldman claimed in 2006 and 2007, at the height of the credit bubble. Goldman completely denied my report and claimed it had zero exposure to AIG.

As was subsequently revealed in the spring of 2009, my report was right on the money. Goldman had roughly $20 billion in exposure to AIG and received roughly $14 billion of money the federal government used to bail out AIG.

But I completely missed one big part of the story... And once this fact becomes common knowledge, it will probably mean jail time for several leading Goldman executives and the end of the firm. What did I miss? The entire Goldman-AIG relationship was a complete sham. Let me explain...

Goldman eventually admitted it had insured roughly $20 billion worth of subprime CDOs with AIG and had major exposure to the firm. But the New York Federal Reserve and Goldman Sachs never revealed this critical fact: Goldman didn't merely buy insurance on a bunch of random subprime CDOs. It actually bought insurance on special CDOs it had put together and sold to its own clients. In other words, Goldman knew more about these CDOs than anyone else. Goldman bought insurance on these CDOs because it knew they'd collapse.

This is tantamount to building a house, planting a bomb in it, selling it to an unsuspecting buyer, and buying $20 billion worth of life insurance on the homeowner – who you know is going to die!

These facts all came to light because of research done by the office of Darrell Issa, the ranking Republican on the House Committee on Oversight and Government Reform. These new documents will certainly lead to a full investigation of the Goldman-AIG dealings and the subsequent $180 billion bailout led by the New York Federal Reserve. My bet? Heads will roll. If you own Goldman Sachs, you'd better sell.

[Image: conspiracy_theory.jpg]
Find all posts by this user
Quote this message in a reply
02-27-2010, 02:39 AM
Post: #2
RE: This Is One of the Biggest Wall Street Frauds Ever... My bet? Heads will roll.
Then there's the whole frontloading thing they've been doing. Add the fact that Goldman Sachs is the leader in naked short selling, and what have we got? The biggest den of thieves Wall St. has ever seen.

Time to sharpen the pikes and march on Wall St.

[Image: randquote.png]
Visit this user's website Find all posts by this user
Quote this message in a reply
02-27-2010, 06:21 AM (This post was last modified: 02-27-2010 07:09 AM by EvilMaster.)
Post: #3
RE: This Is One of the Biggest Wall Street Frauds Ever... My bet? Heads will roll.
It isn't Wall St. It is the people who control Wall St. who are responsible. They are using the seven deadly sins to destroy America. Luxuria, gula, avaritia, acedia, ira, invidia, superbia. They are using us, to destroy us. And they aren't on Wall St. They are in Rome. This is all by design. The next bubble that bursts will be the last. America won't be America after its all over...It will be something else.

I am surprised that more people don't see their true enemy. As they are operating in plain sight. Boldly.
P.s: Japan will be the fall guy.

Knower of the unknown.
Find all posts by this user
Quote this message in a reply
02-27-2010, 07:57 AM (This post was last modified: 02-27-2010 07:57 AM by yeti.)
Post: #4
RE: This Is One of the Biggest Wall Street Frauds Ever... My bet? Heads will roll.
(02-27-2010 06:21 AM)EvilMaster Wrote:  It isn't Wall St. It is the people who control Wall St. who are responsible. They are using the seven deadly sins to destroy America. Luxuria, gula, avaritia, acedia, ira, invidia, superbia. They are using us, to destroy us. And they aren't on Wall St. They are in Rome. This is all by design. The next bubble that bursts will be the last. America won't be America after its all over...It will be something else.

I am surprised that more people don't see their true enemy. As they are operating in plain sight. Boldly.
P.s: Japan will be the fall guy.

Sure, nothing to see on Wall St... it's all about Rome. Boy, I wish I was as smart as you!

[Image: randquote.png]
Visit this user's website Find all posts by this user
Quote this message in a reply
02-27-2010, 08:56 AM (This post was last modified: 02-27-2010 08:59 AM by EvilMaster.)
Post: #5
RE: This Is One of the Biggest Wall Street Frauds Ever... My bet? Heads will roll.
Who controls the money on Wallstreet?...That's right, bankers. So, who controls the bankers??...That's right, international bankers. So, who controls the international bankers??...That's right, Lord Rothschild. So, who controls Lord Rothschild?...That's right, he is the Vatican treasury comptroller. So the Vatican controls him. So, where is the Vatican?...That's right...It's in Rome. Where all roads lead.
Instead of wasting time looking at the bottom of a problem. Why not look at the top of the problem, to see where it all begins? If you maintain focus on the result, how can you ever define the cause?

Knower of the unknown.
Find all posts by this user
Quote this message in a reply
02-27-2010, 03:45 PM
Post: #6
RE: This Is One of the Biggest Wall Street Frauds Ever... My bet? Heads will roll.
Yes Sir Mr. EvilMaster! I can see you have it all figured out.

In the meantime, I hope you don't mind if I get back to reality...

[Image: randquote.png]
Visit this user's website Find all posts by this user
Quote this message in a reply
02-27-2010, 07:25 PM (This post was last modified: 02-27-2010 07:26 PM by h3rm35.)
Post: #7
RE: This Is One of the Biggest Wall Street Frauds Ever... My bet? Heads will roll.
has anyone posted Matt Taibi's research and articles on Goldman Sachs on this forum? If not I'll collect them up and post a new thread - all kinds of dodgy practices have gone on below the radar, all well worth knowing about.

[Image: conspiracy_theory.jpg]
Find all posts by this user
Quote this message in a reply
02-27-2010, 07:37 PM
Post: #8
RE: This Is One of the Biggest Wall Street Frauds Ever... My bet? Heads will roll.
(02-27-2010 07:25 PM)h3rm35 Wrote:  has anyone posted Matt Taibi's research and articles on Goldman Sachs on this forum?

A quick search on this forum for "Taibbi" (note the spelling) brought up quite a few posts.

[Image: randquote.png]
Visit this user's website Find all posts by this user
Quote this message in a reply
02-27-2010, 08:14 PM
Post: #9
RE: This Is One of the Biggest Wall Street Frauds Ever... My bet? Heads will roll.
cool.

[Image: conspiracy_theory.jpg]
Find all posts by this user
Quote this message in a reply
02-28-2010, 09:39 AM (This post was last modified: 02-28-2010 09:47 AM by EvilMaster.)
Post: #10
RE: This Is One of the Biggest Wall Street Frauds Ever... My bet? Heads will roll.
I just gave you information...In an effort to help you. Information that if a politician said on television what I just said, it would probably lead to their assassination in short order...And you come back with juvenile sarcasm?...Seriously??

They are giving you the enemies that you are focusing on, with a big red bow on them. Follow the chain of command son. It is not the insignificant little greedy bankers on wall street. The people in control of what is happening are just using them to achieve a goal. They have faith in the greed of those sniveling wall street money traders. And they are using that greed against us. Like I said...The seven deadly sins.

Now you can get back to your little artificial reality and chase your tail in circles some more if you like. Or you can expand your mind and maybe see what is really happening here. That's up to you.
(02-27-2010 03:45 PM)yeti Wrote:  Yes Sir Mr. EvilMaster! I can see you have it all figured out.

In the meantime, I hope you don't mind if I get back to reality...

Knower of the unknown.
Find all posts by this user
Quote this message in a reply
02-28-2010, 08:56 PM
Post: #11
RE: This Is One of the Biggest Wall Street Frauds Ever... My bet? Heads will roll.
(02-28-2010 09:39 AM)EvilMaster Wrote:  I just gave you information...In an effort to help you. Information that if a politician said on television what I just said, it would probably lead to their assassination in short order...And you come back with juvenile sarcasm?...Seriously??

Actually no, not seriously. They would have discredited themselves so instantly and thoroughly that assassination wouldn't be necessary. BTW, I need your kind of help like I need a 3rd nostril.

Lately I've lost a lot of patience for people who hijack a thread discussing real crimes with misdirection. This is a classic cointelpro technique.

(02-28-2010 09:39 AM)EvilMaster Wrote:  They are giving you the enemies that you are focusing on, with a big red bow on them. Follow the chain of command son. It is not the insignificant little greedy bankers on wall street. The people in control of what is happening are just using them to achieve a goal. They have faith in the greed of those sniveling wall street money traders. And they are using that greed against us. Like I said...The seven deadly sins.

I'm not your son, and I resent your attitude. I've been studying conspiracies for 35 years. I have gone down several trails that ultimately were a complete waste of time. Your lame theory that "all roads lead to Rome" is one of them.

This thread deals with real crimes committed on the American taxpayer by real people. The evidence needed to put these criminals in jail is right under our noses. But you want to tell everyone to look elsewhere. The criminal bankers call people like you useful idiots.

(02-28-2010 09:39 AM)EvilMaster Wrote:  Now you can get back to your little artificial reality and chase your tail in circles some more if you like. Or you can expand your mind and maybe see what is really happening here. That's up to you.

Obviously I'm wasting my time talking to an arrogant fool like you, but I decided I would call you on it anyway in hopes that others here can see the folly in letting these scumbags off the hook while chasing ghosts.

If you want to start a thread explaining your ridiculously simplistic statement that "all roads lead to Rome" and how if we disagree with that we're less intelligent than you, by all means. Knock us out with your genius.

In the mean time, I would advise you to stop hijacking threads with obvious cointelpro techniques. Maybe you should lose your false sense of superiority too - it's really quite boring.

[Image: randquote.png]
Visit this user's website Find all posts by this user
Quote this message in a reply
02-28-2010, 10:07 PM
Post: #12
RE: This Is One of the Biggest Wall Street Frauds Ever... My bet? Heads will roll.
Carry on. Yeah, it's bankers on wallstreet that are doing it all. Simple as that. They have no bosses, they are above the law, the government and military is powerless against those people who work on wallstreet, they report to know one, there is no chain of command to follow up from them. I gotcha.

You have obviously thought this through thoroughly, so who am I to try to help you.

P.s: It is a classic cointelpro technique to point people at an enemy that would be considered insignificant. A shiny flashy target for the public to feast on, while the true culprits remain unseen. Kind of like this situation.

Knower of the unknown.
Find all posts by this user
Quote this message in a reply
03-01-2010, 01:54 AM
Post: #13
RE: This Is One of the Biggest Wall Street Frauds Ever... My bet? Heads will roll.
(02-28-2010 10:07 PM)EvilMaster Wrote:  Carry on.

I will and with continuing dedication because without me this place would no longer exist. Thanks for understanding.

(02-28-2010 10:07 PM)EvilMaster Wrote:  Yeah, it's bankers on wallstreet that are doing it all. Simple as that.

The subject of this thread deals with the obvious crimes of one particular company on Wall St. You are the one who claimed others are "doing it all", whatever that means...

(02-28-2010 10:07 PM)EvilMaster Wrote:  They have no bosses, they are above the law,

They may have bosses, but they are not above the law, which is the point of this thread.

(02-28-2010 10:07 PM)EvilMaster Wrote:  the government and military is powerless against those people who work on wallstreet,

Some would agree 100% with that statement, but I realise that the world is more complicated.

(02-28-2010 10:07 PM)EvilMaster Wrote:  they report to know one, there is no chain of command to follow up from them. I gotcha.

The point is that they must operate within the law.

(02-28-2010 10:07 PM)EvilMaster Wrote:  You have obviously thought this through thoroughly, so who am I to try to help you.

You should probably concentrate more on helping yourself.

(02-28-2010 10:07 PM)EvilMaster Wrote:  P.s: It is a classic cointelpro technique to point people at an enemy that would be considered insignificant.

Sure. Tell me again how the recently formerly largest economy in the world being bankrupted by a tiny crew of criminals through the largest transfer of wealth in the history of mankind is insignificant. Good luck with that, troll.

(02-28-2010 10:07 PM)EvilMaster Wrote:  A shiny flashy target for the public to feast on, while the true culprits remain unseen. Kind of like this situation.

That's right, Mr. Shiny Flashy EvilMaster, the overwhelming evidence of criminal conduct proving these crooks deserve jail time should just be washed away so we can pursue the "true culprits" (all roads lead to Rome, dont'cha know).

We are so glad we have you around to set us straight, Lord EvilMaster...

[Image: randquote.png]
Visit this user's website Find all posts by this user
Quote this message in a reply
03-01-2010, 03:03 AM (This post was last modified: 03-01-2010 03:07 AM by EvilMaster.)
Post: #14
RE: This Is One of the Biggest Wall Street Frauds Ever... My bet? Heads will roll.
Sure...They definitely deserve jail time. They are greedy pigs who are in fact bankrupting the economy. But it is the people who put them up to it, who provided the methods that I am interested in. Those are the people who really deserve our wrath. Not people like greedy wallstreeters near the bottom of the chain of command. Going after a bunch of greedy bankers who don't even realize what they are doing, other than stealing of course...Isn't going to solve anything if the people in charge aren't taken out first.


Cut the head off...And the body falls.

Knower of the unknown.
Find all posts by this user
Quote this message in a reply
03-01-2010, 11:53 AM (This post was last modified: 03-01-2010 11:55 AM by NickHedge.)
Post: #15
RE: This Is One of the Biggest Wall Street Frauds Ever... My bet? Heads will roll.
Basically there is nothing more to this post than the original post by H3rm35. The post really doesn't require any response. At least nothing more than to reiterate the obvious. Nothing will happen to Goldman like nothing will ever happen to Warren Buffett. We all know what is going on, some are just more willing to talk about than others.

Word to yeti, you are dealing with 'drive by posters'.

'Lately I've lost a lot of patience for people who hijack a thread discussing real crimes with misdirection. This is a classic cointelpro technique.'

We have drive by media, drive by texters and obviously drive by posters. Their goal: cause trouble, sit back and laugh.

My solution to the problem? Don't feed the animals.

Every normal man must be tempted, at times, to spit on his hands, hoist the black flag and begin slitting throats. H. L. Mencken




Find all posts by this user
Quote this message in a reply
Post Reply 


Possibly Related Threads...
Thread: Author Replies: Views: Last Post
  Clouded Titles - The Biggest Mortgage Fraud in History Exposed! datars 1 560 10-17-2013 04:36 AM
Last Post: SoulSearcher
  the story of a man that wouldn't bow to wall street h3rm35 0 253 09-16-2012 05:05 PM
Last Post: h3rm35
  Wall Street Financial Fraud: US to drop criminal probe of MF Global h3rm35 0 309 08-23-2012 04:42 AM
Last Post: h3rm35
  Wall Street's Protection Racket of Covert Derivatives: JPMorgan Props Up U.S. Debt h3rm35 0 327 06-20-2012 05:00 PM
Last Post: h3rm35
  So you wanna be a Wall Street techie? Interviews considered as gang sadism h3rm35 0 575 06-19-2012 10:45 PM
Last Post: h3rm35
  Science of Revolution - Defeating Wall Street Banks and the Federal Reserve yeti 0 327 10-24-2011 04:07 PM
Last Post: yeti
Video Occupy Wall Street Protests :: Smug Arrogant Faces zapoper 43 6,555 10-18-2011 05:51 AM
Last Post: April
  WALL STREET AND THE RISE OF HITLER Solve et Coagula 0 324 01-20-2011 11:40 AM
Last Post: Solve et Coagula
  Wall Street Celebrates Record Profits yeti 0 308 01-19-2011 12:52 AM
Last Post: yeti
  Ruling on Behalf of Wall Street's "Super Rich": The Financial End Time has Arrived h3rm35 0 336 11-22-2010 07:45 PM
Last Post: h3rm35

Forum Jump:


User(s) browsing this thread: 1 Guest(s)