I remember back in 1986, when the SEC started looking at Ivan Boesky and his group for insider trading.The morning after the news cracked, J. P. McCarthy of WJR (760 AM, from Detroit) talked with Ivan Boesky, and Boesky was his blase self with McCarthy. He even went so far as to state that many people trying to give him tips were themselves trying to act as inside traders.
Turned out that Boesky was part of a group of people who used the information they knew and made trades on that information. Making millions of dollars and bringing about one of the biggest slides in Stock Market history.
Fast-Forward 23 years, and we’ve gone through a mega-bubble involving sub-prime loans, derivatives, new investment technologies and a housing market in which prices (and house sizes) exploded despite dropping wages. It was the popping of that bubble that brought about the massive trauma that happened to the market (and it’s the stutter-step actions that have kept hyperinflation at bay for now).
And now, it appears that the more we know about what happened in the investment banks and loans and Wall Street, it appears the more criminal everything looks. Bad loans were floated because people would float them, bad investments were sold because people would buy them, and the people putting the bad investments together were happily betting that they would go bad (and making them so they’d go bad, to boot!).
Ivan Boesky merely took pre-knowledge and made money on it. At least the stuff he was using was truthful and genuine; this new stuff makes him look like a Choirboy who didn’t run into any pedophile priests (or at least any who felt free to indulge) while growing up in the Catholic faith.
Another thing I remember is that Boesky and his gang ended up going to one of the Club Fed prisons (Federal Prisons for the nonviolent. Spacious grounds, with but the hint of a fence to remind you that your world was circumscribed by it.). Based on that, it wouldn’t surprise me if nothing happened to the banks and such. People won’t be able to comprehend what happened and how the actions of the bankers, investment places and other parties brought what happened to the nation.
Again: Not because they’re innocent. Because their crime is so big that no one could get their head around it.
Like Nazi Germany and their 12-year holocaust of Jews and others. The Germans should have been de-industrialized and left to starve, but what happened was so big that it couldn’t be conceived (even with the photos and films and such), so they accepted the sacrifice of a few leaders and let them recover.
(and for you deniers: It wasn’t just Auschwitz. A greater portion of the killing happened as the Germans invaded Poland; and then the Ukraine and Belarus. Out in the field, in mass graves. The concentration camps were used towards the end, and had less an impact than is assumed by the average Joe.)