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Reply #51: Bill Black: Fiat Justitia Ruat Caelum (Let Justice be Done, Though the Heavens Fall) [View All]

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Demeter Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Apr-23-11 09:20 AM
Response to Reply #50
51. Bill Black: Fiat Justitia Ruat Caelum (Let Justice be Done, Though the Heavens Fall)

This post by Bill Black is important because it presents and dissects an ugly example of failure of morality and common sense within what passes for the elite in the US....


This was not a fraud free financial crisis. It is a prosecution free financial crisis for the elites whose frauds caused the crisis. Historically, control frauds frauds run by the senior officers who control seemingly legitimate banks and use them as weapons to defraud creditors and shareholders drive serious financial crises. That was true of our two most recent financial scandals. The national commission investigating the causes of the S&L debacle found that at the typical large failure fraud was invariably present. The major Enron era frauds were all control frauds. This current crisis was driven by accounting control frauds. We have known, for well over a century, how to make home loans in a manner that limits fraud to negligible levels. We have known for centuries that if bankers do not underwrite the inevitable results are massive losses, endemic fraud, and failure. Honest mortgage lenders do not make liars loans. No one ever forced a banker to make liars loans. Only fraudulent mortgage lenders make material numbers of liars loans. My prior columns have explained that it was the lenders that overwhelmingly put the lies in liars loans.
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  -The Long Weekend Economists April 22-24, 2011 Demeter  Apr-22-11 08:43 AM   #0 
  - All I can do today is be the first rec. n/t  Tansy_Gold   Apr-22-11 08:57 AM   #1 
  - Ditto  Lochloosa   Apr-22-11 09:01 AM   #2 
  - Thanks - I was having withdrawals-  silverlib   Apr-22-11 09:06 AM   #3 
  - Okay, I just made a fool of myself on LBN.  Hugin   Apr-22-11 10:08 AM   #4 
  - I almost did it too.  Fuddnik   Apr-22-11 10:45 AM   #6 
  - That's par for the course, though  Demeter   Apr-22-11 12:59 PM   #7 
     - Hmmm...  Hugin   Apr-22-11 03:53 PM   #22 
  - Charles Hugh Smith: Your Pick, Ben, But One Goes Off the Cliff  DemReadingDU   Apr-22-11 10:28 AM   #5 
  - 3 Guesses As to Which Population Ben Will Sacrifice  Demeter   Apr-22-11 01:01 PM   #8 
  - Now, that is interesting.  bread_and_roses   Apr-22-11 03:00 PM   #16 
     - The global food crisis is partly because the high price of oil  DemReadingDU   Apr-22-11 03:25 PM   #18 
  - A Pair of Oliphants  Demeter   Apr-22-11 01:11 PM   #9 
  - Nations Mood at Lowest Level in Two Years, Poll Shows  Demeter   Apr-22-11 01:51 PM   #10 
  - Is it 11 recs for the animation?  Demeter   Apr-22-11 01:52 PM   #11 
  - Mine is 13th Rec - on general principles!  bread_and_roses   Apr-22-11 02:52 PM   #15 
  - London trader faces Interpol over Greek debt email  Demeter   Apr-22-11 02:00 PM   #12 
  - Greece Default Hit on Banks Cushioned by ECB, Goldman Says  Demeter   Apr-22-11 04:54 PM   #23 
     - China signals ready to invest more in euro zone  Demeter   Apr-22-11 04:59 PM   #24 
  - JPMorgan to return $861 million to Lehman brokerage  Demeter   Apr-22-11 02:04 PM   #13 
  - JPMorgan Agrees to Return $800 Million to Settle Lehman Brokerage Claims  Demeter   Apr-22-11 02:05 PM   #14 
  - Recommend - I was out trying on new Cole-haan's and going with a girl friend to  xchrom   Apr-22-11 03:15 PM   #17 
  - Good Friday to all, to some for the fact that it is a day off.  Festivito   Apr-22-11 03:31 PM   #19 
  - Debt: 04/20/2011 14,314,796,837,035.76 (DOWN 5,671,718,055.92) (Wed, UP a little.)  Festivito   Apr-22-11 03:33 PM   #20 
  - Debt: 04/21/2011 14,290,788,661,250.50 (DOWN 24,008,175,785.26) (Thu, DOWN a lot.)  Festivito   Apr-22-11 03:38 PM   #21 
  - That was probably just Hugin--See Above  Demeter   Apr-24-11 09:15 PM   #74 
  - U.S. Team to Study Whether Speculators Driving Up Pump Prices  Demeter   Apr-22-11 05:00 PM   #25 
  - Where to Find the Anti-Dollar (Hint: Its Not Gold) Rob Marstrand for The Daily Reckoning  Demeter   Apr-22-11 05:09 PM   #26 
  - Expatriate Your Wallet By Terry Coxon  Demeter   Apr-22-11 05:11 PM   #27 
  - Japan unveils Y4,000bn disaster budget  Demeter   Apr-22-11 05:13 PM   #28 
  - M Stanley converts $7.8bn MUFG stake  Demeter   Apr-22-11 05:15 PM   #29 
  - Financial arm drives GE earnings growth  Demeter   Apr-22-11 05:15 PM   #30 
  - Blackstone supported by real estate holdings  Demeter   Apr-22-11 05:16 PM   #31 
  - Citi pledges higher 2012 dividend  Demeter   Apr-22-11 05:17 PM   #32 
  - NY Times signs up 100,000 online subscribers  Demeter   Apr-22-11 05:17 PM   #33 
  - HOW CONVENIENT! Libyan royal family waits in wings for Gaddafi ouster  Demeter   Apr-22-11 05:22 PM   #34 
  - If he is so interested in  burf   Apr-23-11 11:07 AM   #57 
  - Meet the new Shah.  Fuddnik   Apr-23-11 11:22 AM   #58 
  - Obama's Mexicogate?  Demeter   Apr-22-11 05:24 PM   #35 
  - Bernanke Strikes Again; QE2 sends margin debt soaring to new highs By Mike Whitney  Demeter   Apr-22-11 07:40 PM   #36 
  - Velkommen to Banktopia By Mike Whitney  Demeter   Apr-22-11 08:10 PM   #38 
  - The New Corporate World Order By Robert Scheer  Demeter   Apr-22-11 07:58 PM   #37 
  - Matt Taibbi Follows the Money in Iowa  Demeter   Apr-23-11 06:24 AM   #39 
  - Terrible Political One-Liner  Demeter   Apr-23-11 06:46 AM   #40 
  - A Funny Thing Happened on the Way to the AZ House of Representatives After passing the Senate 28-2  Demeter   Apr-23-11 07:06 AM   #41 
  - Lost decade? We've already had one  Demeter   Apr-23-11 07:18 AM   #42 
  - Investors drove home sales up 3.7 pct. in March  Demeter   Apr-23-11 07:19 AM   #43 
  - Nissan to shift Infiniti SUV production to U.S.  Demeter   Apr-23-11 07:21 AM   #44 
  - Probe launched into Prus failed AIA bid  Demeter   Apr-23-11 07:29 AM   #45 
  - The FDICs Rosy, Theoretical, Misleading Lehman Resolution Counterfactual (or Why TBTF is Still TBTF  Demeter   Apr-23-11 07:53 AM   #46 
  - FDIC closing office in Irvine, California  DemReadingDU   Apr-23-11 08:26 AM   #47 
     - Hmmmm  Demeter   Apr-23-11 02:26 PM   #59 
  - Doug Smith: A Stiletto In The Back Of Sane Housing Markets  Demeter   Apr-23-11 09:08 AM   #48 
  - Gov. Scott Walker Reportedly Planning Financial Martial Law In Wisconsin  Demeter   Apr-23-11 09:13 AM   #49 
  - And so it begins. Emergency Financial Mgr. fires entire government of Benton Harbor, MI  Demeter   Apr-23-11 09:30 AM   #54 
     - FYI a rebuttal no idea what it means  kickysnana   Apr-24-11 09:56 AM   #62 
        - sounds like cherry-picking the facts to me  Demeter   Apr-24-11 11:15 AM   #64 
  - Bill Black: Fiat Justitia Ruat Caelum (Let Justice be Done, Though the Heavens Fall)  Demeter   Apr-23-11 09:20 AM   #51 
  - More Shots Across MERSs Bow  Demeter   Apr-23-11 09:22 AM   #52 
  - Wrongful Foreclosures  Demeter   Apr-23-11 09:25 AM   #53 
  - Fatal Risk the must-read book on AIG's failure  Demeter   Apr-23-11 09:35 AM   #55 
  - Guest Post: Too Much Finance?  Demeter   Apr-23-11 09:46 AM   #56 
  - Went to see these guys again last night. AWESOME!!!  Fuddnik   Apr-24-11 04:07 AM   #60 
  - "Right-Wingers Are Serious About Trying to Undermine Child Labor Laws"  bread_and_roses   Apr-24-11 07:07 AM   #61 
  - So, challanging Bernanke and QE2 is a "right-wing" position.  Pale Blue Dot   Apr-24-11 10:55 AM   #63 
  - What?  Demeter   Apr-24-11 11:17 AM   #65 
  - Not here!  Pale Blue Dot   Apr-24-11 11:19 AM   #66 
     - Well, Ben IS Universally Despised Outside Wall St  Demeter   Apr-24-11 11:30 AM   #68 
  - Since the "right-wing" is a wholly-owned subsidiary of our Corporate Overlords  bread_and_roses   Apr-24-11 12:47 PM   #71 
  - I read that little exchange  jtuck004   Apr-24-11 06:12 PM   #73 
  - Happy Resurrection of Persephone, Everyone!  Demeter   Apr-24-11 11:22 AM   #67 
  - Persephone? Is he related to Cellphone?  Fuddnik   Apr-24-11 12:33 PM   #69 
     - Maybe your battery has reached the end of its useful life  Demeter   Apr-24-11 12:38 PM   #70 
     - My cellphone lost its display a couple weeks ago  DemReadingDU   Apr-24-11 12:54 PM   #72 
  - Hope You All Had a Good Family Get Together this Week  Demeter   Apr-24-11 09:27 PM   #75 

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