SEC Chairman Christopher Cox acknowledged there were “multiple failures” at the SEC for the largest Ponzi Scheme in US history. He also blamed his agency regulators for a decade-long failure to investigate Madoff and to avoid the scheme earlier. So he started to push the responsibility to others. People revealed that Madoff’s niece was married to a former high-ranking SEC attorney named Eric Swanson. Could this explain why the scheme can last so long ? When people talked about corrupt, they thought it MUST not be their government because their society are more, and established on the base of law. All kinds of departments in the government could keep one eye on each other to avoid big scandals and corrupts. However, one series of scandals because of de-regulation does not support this.
- The de-regulated CDS black hole
- Risk leverage in investment banks like BSC, LEH, MER, GS and GS
- Over-loaning of banks without checking so called credit history like WB, WU, CFC
Now the bubble busted, and everybody is saying “It is not my fault!”. Until now, the government still keeps printing money to cover the problem instead of to find the root cause exposed in this crisis. Perhaps they want, but no time at this moment! I feel so disappointed about it, and it is another historic disaster created by people who are abusing credit. Now, nobody knows where the end is. You could see how desperate the Fed is and what their “all available tools” will be soon! Hope those tools are not just excuses to start the money printers!! Without truth before individual investor, they will start redemption to confirm their money are still there. It will be a big mess then.
