Tag Archives: history

The Wizard of Lies: Diana Henriques

By Russel Kinnel | 05-24-2011

What Investors Should Learn From Bernie Madoff

Author Diana Henriques believes that the Madoff scandal underscores the importance of vigilance and research in selecting an investment advisor.

Russel Kinnel: Hi. My name is Russ Kinnel. I am director of mutual fund research for Morningstar, and today I’m going to be talking with Diana Henriques, author of The Wizard of Lies, a book about Bernie Madoff who pulled off the greatest Ponzi scheme ever.

The first question I want to ask you is about some of the research you did looking into his early life, and it’s really striking to see the signs of what would later become a giant Ponzi scheme were really there early on if you knew where to look.

Diana Henriques: That’s true, Russ, and I was quite surprised at that, as well. One of the mysteries I’m afraid, that will live as long as Madoff does, is when exactly the Ponzi scheme started. But I was able in my research to uncover an incident in 1962 when he was a very young over-the-counter trader with his own little firm.

He had invested money that was given to him by friends and family in very speculative, risky, over-the-counter stocks. In a market air pocket in May 1962 the bottom just dropped out of those stocks, and they lost all their money. But rather than confess that to them, he covered it up. He bought the shares back from their portfolios at what they paid for it and didn’t reveal but for that they would have been completely wiped out.

Now, he insisted to me, after the prison interview I had with him in August of 2010, that he kept it a secret from the investors because he knew that if he told them about it, they would insist that they take the losses and that he not nearly bankrupt himself to cover them up for him. But I don’t really buy that. I think he burnished his own reputation as the boy genius in the family and managed to hang on to those investment clients by lying to them about what he had done to prevent those losses in their accounts.

Now, that’s not the beginning of the Ponzi scheme, there’s no doubt about that. But it certainly was a very telling experience in the young life of the young Madoff.

Kinnel: You certainly get the sense that he, and maybe even his father to a degree, were trying to put a veneer on things that made things look better. And maybe all along he was trying to make it look like maybe he was a little more skilled investor than he was and that everyone was better off than they really were?

http://www.morningstar.com/cover/videocenter.aspx?id=382418

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How much money can banks create – Banking 101…Positive Money

How much money can banks create – Banking 101 (Part 4)

Published on Jan 18, 2013

http://www.positivemoney.org/
What does actually limit the ability of banks to increase the money supply?
In this video you’ll see that the type of reserve ratio that’s discussed in the textbooks has never even existed in the UK. We’ll see that the liquidity ratios that did exist have been reduced and eventually abolished, and that even when they did exist, they only limited the speed that the money supply could increase, but put no limit on the total size that it could grow to.

You’ll learn that the Capital Adequacy Ratios and Basel accords are about preventing banks from going bust when loans go bad, rather than limiting their dangerous lending or limiting how much money they create through lending. And although the capital adequacy requirements can restrain lending after a banking crisis, it doesn’t do anything to restrain lending in a boom.

You’ll also see that there is no natural limit on how quickly the banks can create money. They know that even if they don’t have the actual central bank reserves to make payments, they’ll be able to borrow those reserves from other banks, or even the central bank.

All this comes together to imply that the only thing that truly limits the creation of money, is the willingness of banks to lend. And their willingness to lend depends on their confidence.

In other words, the money supply of the nation depends on the mood swings of banks and the senior bankers that run them. This is surely an insane way to run an economy.

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Email: mira[at]positivemoney.org

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Positive Money is a not-for-profit research and campaign group. They work to raise awareness of the connections between our current monetary and banking system and the serious social, economic and ecological problems that face the UK and the world today. In particular they focus on the role of banks in creating the nation’s money supply through the accounting process they use when they make loans – an aspect of banking which is poorly understood. Positive Money believe these fundamental flaws are at the root of – or a major contributor to – problems of poverty, excessive debt, growing inequality and environmental degradation. For more information, please visit: http://www.positivemoney.org/

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Gerald Celente – Trends In The News – “The Winter Edition”

Gerald Celente – Trends In The News – “The Winter Edition”

Winter Trends Journal 2012

http://www.trendsresearch.com/index.php

ALL WARS ARE BANKERS’ WARS!….Mike Rivero WRH

ALL WARS ARE BANKERS’ WARS!

NEW! PODCAST OF ‘ALL WARS ARE BANKERS WARS’ FROM JANUARY 14TH, 2013 RADIO SHOW.

I know many people have a great deal of difficulty comprehending just how many wars are started for no other purpose than to force private central banks onto nations, so let me share a few examples, so that you understand why the US Government is mired in so many wars against so many foreign nations. There is ample precedent for this.

The United States fought the American Revolution primarily over King George III’s Currency act, which forced the colonists to conduct their business only using printed bank notes borrowed from the Bank of England at interest. After the revolution, the new United States adopted a radically different economic system in which the government issued its own value-based money, so that private banks like the Bank of England were not siphoning off the wealth of the people through interest-bearing bank notes.

“The refusal of King George 3rd to allow the colonies to operate an honest money system, which freed the ordinary man from the clutches of the money manipulators, was probably the prime cause of the revolution.” — Benjamin Franklin, Founding Father

But bankers are nothing if not dedicated to their schemes to acquire your wealth, and know full well how easy it is to corrupt a nation’s leaders. Just one year after Mayer Amschel Rothschild had uttered his infamous “Let me issue and control a nation’s money and I care not who makes the laws”, the bankers succeeded in setting up a new Private Central Bank called the First Bank of the United States, largely through the efforts of the Rothschild’s chief US supporter, Alexander Hamilton. Founded in 1791, by the end of its twenty year charter the First Bank of the United States had almost ruined the nation’s economy, while enriching the bankers. Congress refused to renew the charter and signaled their intention to go back to a state issued value based currency on which the people paid no interest at all to any banker. This resulted in a threat from Nathan Mayer Rothschild against the US Government, “Either the application for renewal of the charter is granted, or the United States will find itself involved in a most disastrous war.” Congress still refused to renew the charter for the First Bank of the United States, whereupon Nathan Mayer Rothschild railed, “Teach those impudent Americans a lesson! Bring them back to colonial status!” Financed by the Rothschild controlled Bank of England, Britain then launched the war of 1812 to recolonize the United States and force them back into the slavery of the Bank of England, or to plunge the United States into so much debt they would be forced to accept a new private central bank. And the plan worked. Even though the War of 1812 was won by the United States, Congress was forced to grant a new charter for yet another private bank issuing the public currency as loans at interest, the Second Bank of the United States. Once again, private bankers were in control of the nation’s money supply and cared not who made the laws or how many British and American soldiers had to die for it….

“Should Germany merchandise (do business) again in the next 50 years we have led this war (WW1) in vain.” – Winston Churchill in The Times (1919) 

“We will force this war upon Hitler, if he wants it or not.” – Winston Churchill (1936 broadcast

“Germany becomes too powerful. We have to crush it.” – Winston Churchill (November 1936 speaking to US – General Robert E. Wood) 

“This war is an English war and its goal is the destruction of Germany.” – Winston Churchill (- Autumn 1939 broadcast)

goto

http://whatreallyhappened.com/WRHARTICLES/allwarsarebankerwars.php

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