WHERE IS THE OUTRAGE?

Did the ECB Save Comex from Gold Default? (Part 2)[MUST READ]
The agricultural roots of today’s futures markets are the reason that the CFTC is overseen by the Senate and House agricultural committees, rather than the banking committees. Philip McBride Johnson, a partner in the firm of Skadden, Arps, Slate, Meagher & Flom LLP, whose clients are mostly securities and derivatives dealers, served as chairman of the CFTC from 1981 to 1983, and has written an excellent book which, in Chapter 10, exposes many of the problems he helped to create.[2] The book candidly tells the story of money-influenced politics, and how money was used by commodities dealers and the exchanges to buy lobbyists and, eventually, to buy one regulator for themselves, now known as the CFTC, from Congress.

Given that the CFTC’s origins arise out of a “purchase” of the 1974 Congress, by derivatives dealers, one can better understand why the institution fails in its job on a regular basis. CFTC was born out of the sin of lobbying money. What it has done, however, is convince many traders that it is perfectly legal for commercial entities to engage in massive naked short selling. While the idea is completely false, any attempt to dissuade these people of that erroneous belief, is now met with personal attacks and contempt. Reading some of the tirades in the comments section of my previous article illustrates that point. Thanks to the CFTC, naked short selling, which is exactly what all the enabling Acts were passed to prevent, has become a daily practice. The agency has turned out to be useless, except with respect to regulating small traders who have no political clout.
http://seekingalpha.com/article/129706-did-the-ecb-save-comex-from-gold-default-part-2


FLASH: AIG CALLED CRIMINAL SCAM!
AIG was a Ponzi scheme plain and simple, yet the Obama Administration still thinks of AIG as a real company that simply took excessive risks. No, to us what the fraud Bernard Madoff is to individual investors, AIG is to the global financial community.
As with the phony reinsurance contracts that AIG and other insurers wrote for decades, when

AIG wrote hundreds of billions of dollars in CDS contracts, neither AIG nor the counterparties believed that the CDS would ever be paid. Indeed, one source with personal knowledge of the matter suggests that there may be emails and actual side letters between AIG and its counterparties that could prove conclusively that AIG never intended to pay out on any of its CDS contracts.

There are two basic problems with side letters. First, they are a criminal act, a fraud that usually carries the full weight of an “A” felony in many jurisdictions. Second, once the side letter is discovered by a persistent auditor or regulator examining the buyer of protection, the transaction becomes worthless. You paid $6 million to AIG to shift risk via the reinsurance, but the side letter makes clear that the transaction is a fraud and you lose any benefit that the apparent risk shifting might have provided.

These were not valid contracts as Fed Chairman Ben Bernanke, Treasury Secretary Geithner and Economic policy guru Larry Summers claim, but rather acts of criminal fraud meant to manipulate the capital positions and earnings of financial companies around the world.

Seen in this context, the payments made to AIG by the Fed and Treasury, which were then passed-through to dealers such as Goldman Sachs (NYSE:GS), can only be viewed as an illegal taking that must be reversed once the US Trustee for the Federal Bankruptcy Court for the Southern District of New York is in control of AIG’s operations.

Thank you Timmy, thank you Ben Bernanke, thank you Henry Paulson, thank you George Bush and thank you President Obama.

If this is true every one of you needs to go to prison.

After those of you still in your positions are impeached.

Again, for the simple who need it in one sentence:

AIG was a Ponzi scheme plain and simple, yet the Obama Administration still thinks of AIG as a real company that simply took excessive risks. No, to us what the fraud Bernard Madoff is to individual investors, AIG is to the global financial community.

Distilled to one sentence: The bailout of AIG is equivalent to the US Taxpayer bailing out Madoff's admitted (and now convicted) Ponzi Scheme.
http://market-ticker.org/archives/923-FLASH-AIG-CALLED-CRIMINAL-SCAM!.html