If you are new to this blog, you are invited to read first “The Largest Heist in History” which was accepted as evidence and published by the British Parliament, House of Commons, Treasury Committee.

"It is typically characterised by strong, compelling, logic. I loosely use the term 'pyramid selling' to describe the activities of the City but you explain in crystal clear terms why this is so." commented Dr Vincent Cable MP to the author.

This blog demonstrates that:

- the financial system was turned into a pyramid scheme in a technical, legal sense (not just proverbial);

- the current crisis was easily predictable (without any benefit of hindsight) by any competent financier, i.e. with rudimentary knowledge of mathematics, hence avoidable.

It is up to readers to draw their own conclusions. Whether this crisis is a result of a conspiracy to defraud taxpayers, or a massive negligence, or it is just a misfortune, or maybe a Swedish count, Axel Oxenstierna, was right when he said to his son in the 17th century: "Do you not know, my son, with how little wisdom the world is governed?".

Wednesday 1 December 2010

Joseph Stiglitz: "We Have To Throw Bankers In Jail Or The Economy Won't Recover"


Nobel prize winning economist Joseph Stiglitz told AOL Daily Finance on October 20th, 2010: "This is a really important point to understand from the point of view of our society. The legal system is supposed to be the codification of our norms and beliefs, things that we need to make our system work. If the legal system is seen as exploitative, then confidence in our whole system starts eroding. And that’s really the problem that’s going on. [...] I think we ought to go do what we did in the S&L [crisis] and actually put many of these guys in prison. Absolutely. These are not just white-collar crimes or little accidents. There were victims. That’s the point."

The author of this blog presented such view in an article that started this blog: "The largest heist in history" which Professor Stiglitz has known since January 2009. In fact this blog was only started since experts, politicians and mainstream media pundits ignored such obvious view two years ago. And great majority of them keeps ignoring it. Welcome to the club, Professor Stiglitz.
Posted by Greg Pytel at 11:34
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4 comments:

  1. Anonymous6 December 2010 at 03:29

    Have you seen the film "Inside Job"? I commend it to your attention.

    ReplyDelete
  2. Anonymous6 December 2010 at 09:29

    Greg,

    It is surprising that this point made by Stiglitz was not picked up much by the mainstream media.

    My main contention is that the fraud is being perpetrated through securitisation, the means being the mis-pricing of risk:

    When is a fraud not a fraud?

    I'd welcome your comments.

    ReplyDelete
  3. Anonymous22 December 2010 at 15:54

    Greg;

    Sensational blog - I have not had a chance to review everything but so far the material has been first class.

    @forezic - You have strange idea's if you think MSM (mainstream media) is going to report anything that is useful for the common people - MSM exists only for the purposes of conditioning your mind to a preselected set of paradigms - that I like to call alternatively; 'generally accepted reality', or 'fantasy land'.

    ReplyDelete
  4. Greg Pytel22 December 2010 at 18:11

    Hi Amagnon

    Thanks for a nice word! If you think my blog deserves it, please spread the link to it around.

    And if you have critical comments, please post it for discussion. It helps me a lot with ideas for new articles. (I do not moderate comments: only remove some marketing stuff - but not all, as if someone cares to go though my blog why not help him/her do some business - and clearly insulting comments.)

    Best

    Greg

    ReplyDelete

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