Financial Crimes

The Game Stop scandal once and for all exposed just how corrupt the financial system is. The bottom line is that regular folks simply outwitted the Experts and the Experts, rather than take the loss and learn the lesson, called on the power of major corporations and government regulators to squash the regular folks. They do want us to take our savings and dump it in the market, but they don’t want a million of us, each using our $1,000.00, to do what they do all the time – manipulate stock prices for personal benefit.

This was also a rare moment of unity where everyone from Commies to MAGA were united in their outrage. Naturally, most solutions proposed for this are ineffective. I’m still in favor of breaking up all large corporations and confiscating all personal wealth above $5 billion (the proceeds to be distributed by lottery to American citizens in $100,000.00 lots). But even the Commies aren’t in favor of that. So, as we won’t actually solve the problem, a few other proposals.

  1. You can’t sell stock you don’t own (they really do this).
  2. The additional capital gains tax on a stock held less than 24 hours is 90%. Less than a week, 50%. Less than a month, 40%. Thirty one days or longer, no additional penalty. The idea here is to get people to be investors, rather than gamblers.
  3. Corporate boards are responsible, civil and criminal, if financially critical corporate information leaks before public announcement (this to hamper insider trading; don’t go after the guy who acts on a tip – go after the tipster).
  4. Shares of corporations bidding for government contracts in excess of $10 billion cannot be traded until after the contract is released. Once you start the bid process, no one can buy or sell your stock (this to prevent government people from insider trading).
  5. No bail out, ever, for any financial corporation. Sink or swim.
  6. No corporate executive can become a government employee until five years after leaving corporate employment. No government employee can become a corporate executive or board member until ten years after leaving government.
  7. Corporations with a market cap in excess of $1 billion cannot donate to political parties; pay speaking fees; employ spouses, siblings; children, grandchildren, parents, first cousins or in-laws of government officials

I know we’ve all defended free markets – and, in fact, we still do. But the reality is that we don’t have free markets. We have a quasi-feudal, bastard child of Capitalism and Socialism. The economy isn’t for GDP. It isn’t to get rich. It isn’t to provide a tax base. It is to allow one person, working hard and living frugally, to support a family and leave a legacy for children. Anything that is not geared towards that is bad and must go. Until we wake up to the fact that the system, itself, has to go, we really won’t get anywhere.

15 thoughts on “Financial Crimes

  1. Retired Spook January 28, 2021 / 11:52 pm

    You can’t sell stock you don’t own (they really do this).

    Or conversely, you can’t short more shares than actually exist, often resulting in the complete destruction of the company whose shares are being shorted. Quite frankly, I don’t know why this is even legal. Only in a world where the big players either get to have a hand in writing the rules or they bribe the people who write the rules, while the little guy takes it in the shorts. Well this time the big guy/s took it in the shorts and cried foul, Boo frickin’ hoo.

    • jdge1 January 29, 2021 / 1:51 am

      Though I may be wrong, I though shorting a stock was dependent on a few things. One of the primary parts of being able to short a stock is for the broker who you do business with would need to have a different client who actually owned that stock and the broker essentially “borrowed” that stock from the true owner and lend it to you to sell until you settled your short with a “purchase”, preferably at a price lower than when you shorted (sold) it. If the actual owner of the stock wanted to sell it themselves while you’ve shorted it, the broker would have to either find a different client with the stock to “borrow” or force the person shorting the stock to buy it back at that point in time. I’ve not heard of situations where someone could actually short more shares of a stock that existed and not sure how that would be possible if the above-mentioned scenario was the way a stock was shorted. Perhaps the rules are different for those with much greater financial resources, though I’m not sure how that would work.

  2. Retired Spook January 29, 2021 / 12:34 pm

    I just started reading 1984 again, having read it in college nearly 60 years ago. In the “Book Description” prior to the first chapter it says this:

    A PBS Great American Read Top 100 Pick

    With extraordinary relevance and renewed popularity, George Orwell’s 1984 takes on new life in this edition.

    “Orwell saw, to his credit, that the act of falsifying reality is only secondarily a way of changing perceptions. It is, above all, a way of asserting power.” — The New Yorker

    And so it begins — for real.

  3. Retired Spook January 29, 2021 / 12:59 pm

    Excellent analysis of just exactly where the country is today.

  4. dbschmidt January 29, 2021 / 8:04 pm

    Nothing to see here…Move along. What two tiers..nothing to see here move along.

    • Amazona January 30, 2021 / 11:18 am

      Only two tiers? Since when?

      We have always had the two basic tiers of Rich and Powerful vs Just Plain Folks. Then we added one when we stopped holding illegal aliens accountable for their crimes. Drunk drivers, people responsible for accidents, in general any traffic-related violation was simply ignored. Back in about 2004 a policeman friend said they were not even allowed to ask of a person was here legally, or even if his “green card” was legitimate. A brother was badly injured when an illegal alien, in a stolen pickup, ran a stop sign and T-boned a van with two children in the back seat. He was going so fast the impact threw the van into the air where it landed upside down on another car. He fled the scene. The alien was drunk, with open containers in the truck, and the intersection was a T junction so the road he was on didn’t even extend beyond it. The owner of the pickup—his aunt—wanted to press charges for theft. And he walked. Not even a ticket.

      I would have been in jail, with a long list of serious charges being filed. Illegal alien—-different rules.

      Tier Number 4: Now we have people representing the agendas of one political system being given free rein to riot, commit arson, commit murder, destroy public property, destroy federal buildings, destroy businesses, threaten and intimidate people and march declaring their intent to destroy our government, with no legal consequences. I think of this as a fourth tier—not rich, not powerful in their own right, but representing a certain political philosophy and advancing its cause through the imposition of fear and intimidation.

      A fifth would be those with different rules because of their political offices or positions in government. These would include Hillary Clinton, as well as Barack Obama. Joe Biden, James Clapper, Jim Comey and the rest of the criminals who used our federal agencies to spy on American citizens to try to influence an election. Their crimes were federal and sometimes international, sometimes directly endangering national security, in violation of many serious and even Constitutional laws. None have been held accountable.

      A sixth tier would be occupied by the Agenda Media, whose crimes of libel are protected by the political system they represent under the umbrella of protection intended to protect a free press and allow for open discourse.

      A seventh is that of public officials openly, blatantly, violating law after law because of their personal political belief systems. These people use their offices to refuse to prosecute some criminals, to free dangerous and violent prisoners, and in general to break law after law knowing they will never be held accountable.

      Oh, for the good old days of only two tiers of justice.

      • Retired Spook January 30, 2021 / 12:35 pm

        I think of this as a fourth tier — not rich, not powerful in their own right

        But funded by rich and powerful interests.

      • dbschmidt January 30, 2021 / 1:36 pm

        Should have said “too many tiers of justice” where only the ordinary, working folks playing by the rules get hammered. Thanks for the correction.

      • Amazona January 30, 2021 / 4:33 pm

        I wasn’t picking on you, just expanding the concept.

        I think we all agree, at least all rational people agree, that a legal system which has different rules and applications and punishments for different classes of people is a recipe for disaster. But disaster is necessary for the Left to consolidate and expand its power. The more fragmented a society, the easier it is to pit one element against another and stir up so much confusion, rage and resentment that people are easily manipulated and led in whatever direction the Left finds expedient at the time.

      • dbschmidt January 30, 2021 / 7:59 pm

        I did not consider it “picking on” but rather expanding my view to what I had already known but did not present.

      • Amazona January 31, 2021 / 12:17 pm

        Synergy, my friend. Synergy.

  5. dbschmidt January 29, 2021 / 8:21 pm

    On a different vector, I will bring up the election again; however, I don’t care who won but rather how the cards were counted. You can only play the hand you are given. I want full transparency across the board. Every election, every vote before I can accept the results. When a State certifies results with 200 K more votes than voters I have questions. I could go on for some time but that is not my greatest concern–it is the law on (un)intended consequences. For example the Mad Max of our new wastelands Maxine Waters and her new offering. Even if expected to be dead at the Senate level–keep your eyes open.

    Lie to FISA–probation. Illegal server dealing with SCIF level information–nothing, make a bad meme–10 years in prison. Fair? Sure Dude.

    I can’t even post a full IP address on Jabber when talking amongst members of the team. I call BS, hot & steaming. I already get my anal probe by the US Government — I don’t needs any help from the ChiComs.

  6. dbschmidt January 29, 2021 / 8:28 pm

    Basically, Biden got 80 million votes at the same time Epstein killed himself.

  7. Jeremiah January 29, 2021 / 9:58 pm

    Good seminar…

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