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Dr. Housing Bubble 02/18/09

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Crewleader Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Feb-19-09 12:19 AM
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Dr. Housing Bubble 02/18/09

Allen Stanford, Second Half Financial Recovery, and Decoupling: Delusional Economic Beliefs now Shattered.

Allen Stanford, the Texas billionaire is now under investigation by the SEC in what looks like more market shenanigans. The SEC is now stating that the fraud is of shocking magnitude and spans the world and involves $8 billion in securities that were allegedly falsely marketed to customers. Of course, the SEC is probably now turning up the fire on Allen Stanford even acknowledging that Stanford had been under investigation for sometime because of the major flak it is taking over uncle dubious, Bernard Madoff who operated a $50 billion Ponzi scheme that has now come to captivate the imagination of many Americans.

Yet the story of Allen Stanford is only shocking in the light of denial and downright navet that many had when the story of Bernard Madoff hit only a few months ago. Many were saying that this was the fraud of the century and nothing else could compare. Well guess what? Here we are at the well again. The SEC now feeling that it needs to make up for lost time, is now going to start pulling out a few sacrificial lambs to placate the masses. Make no mistake, the true fraud is what is being perpetrated by the Federal Reserve, Wall Street, and the U.S. banking industry.

At the heart of the Allen Stanford story is high-yielding CDs. Of course as we all know many banks and institutions that have now gone into the graveyard like WaMu and IndyMac were offering competitive rates on CDs only days before their demise in a last ditch effort to raise capital. Sir Allen Sanford is estimated to have a net worth of $2.2 billion and is 58 years old. Stanford is the chairman of the Stanford Financial Group of Companies. Ironically this guy made his first fortune in real estate in the early 1980s when he was based out of Houston, Texas. What a stunner. In 1983 Stanford had a default judgment of $31,800 slapped on him for back rent on a failed health club in Waco. Since that time Stanford has expanded on the greed that has fed this crony capitalistic enterprise and branched out to insurance and real estate. And now Stanford is showing us how to do the bezzle dance:
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