Tag Archives: criminogenic

GM’s Cartoon Version of von Hayek’s “Road to Serfdom” – on the 70th Anniversary of D-Day

By William K. Black

The web has provided another proof of our family rule that it is impossible to compete with unintentional self-parody.  The day after GM’s preposterous congressional testimony and its release of the unintentionally hilarious Valukas report detailing GM’s criminal indifference to human health and life a libertarian blogger featured GM’s cartoon version of von Hayek’s “Road to Serfdom” to warn us of the fact that democratic government invariably leads to serfdom.

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Valukas Assumes GM’s Reported Quality Was Real despite 13.8 Million Recalls in Five Months

By William K. Black

I just posted an article about the ludicrous excuse that Mary Barra, GM’s CEO, offered in her congressional testimony for GM’s lengthy refusal to correct a design defect it knew was killing and maiming people.

The defective design caused GM cars, without warning, to suddenly lose electrical power essential to the driver’s ability to control the car and for the air bags to function.  The car became an unguided missile and simultaneously lost the protective device that was most critical to safety in such circumstances.  The design defect, therefore, endangered not only GM customers but also anyone in the vicinity when the GM car lost electrical power.

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Heeding the Appraisers’ Fraud Warnings Would have Prevented the Crisis

By William K. Black

On July 9, 2013 I participated in a radio interview with a lobbyist for the 100 largest financial firms.  The San Francisco radio program host asked me what question I would ask the lobbyist and I said that any discussion should begin with allowing him to state his view of what caused the crisis.  In the course of his explanation, he bemoaned the fact that there was no warning about the crisis.

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Brown-Vitter Will Not and Cannot Work but it is Criminogenic

By William K. Black

Introduction

Senators Sherrod Brown (D-OH) and David Vitter (R-LA) have introduced a bill entitled “Terminating Bailouts for Taxpayer Fairness Act of 2013.”  It is a miracle of modern staffing that Vitter, who loves polluters as much as his prostitutes, was able to pull himself away from demanding that President Obama’s nominee to run the EPA answer over 600 questions and join Brown in proposing the bill.  Under Obama, bipartisan bills have a dismal fate because the Democrats negotiate away key elements necessary to create a good bill and add provisions that make parts of the bill harmful – just to pick up a few token co-sponsors – and then the Republicans kill good parts of the bill anyway and try to enact the bad parts. Continue reading

The Lethal Lemons on the Road to Bangladesh

By William K. Black

I wrote yesterday about the “control frauds” (in which the person controlling a seemingly legitimate entity uses it as a “weapon” to defraud) that target purchasers of bad quality goods (“lemons”) and employees.  The example I used to explain these concepts was the collapse of the building housing garment factories in Bangladesh.  Continue reading

Ecuadorian Banking Crisis

William Black, by invitation of the President of Ecuador’s National Assembly, will present to the Standing Specialized Committee of Economic and Tax Regime in Quito, Ecuador on the banking crisis in that country.

Professor Black’s experience in financial regulation and his involvement in the US Savings and Loan Crisis puts him in a position to assist the Ecuadorians with their banking crisis.

Details are available in the following spanish language article.

The City of London continues to drive the criminogenic regulatory race to the bottom

By William K. Black
(Cross posted at Benzinga.com)

Two years ago, I wrote an article entitled “The Bank of England Sows the Seeds of the Next UK Crisis.”

I was not vain enough to believe that the British establishment would listen to my critique.  The books authored recently by Jeff Connaughton, Neil Barofsky, and Sheila Bair have made clear that the dominant strategy of the Bush and Obama administrations has been providing aid and comfort to the banksters who drove the crisis rather than holding them accountable for their crimes.  The Brits are following the same dominant strategy.

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Fiat Justitia? Breuer fires blanks on elite financial frauds

By William K. Black

Beurre blanc is the classic white butter sauce of France.  Americans who hate the French claim that they became adept at saucing to cover up the rot in their meat in earlier times.  A beurre blanc does not remove the rot.  It masks the bad taste and the bad color of bad meat.  Indeed, the sauce makes the dish even less healthy.  If the rotten meat doesn’t get you, the sauce’s cholesterol will.

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Too Big To Jail

In a recent article (9/8) at Huffington Post, NEP’s William Black  provides support as to why Wall Street executives should face criminal charges relating to the financial crisis.

 

Eduardo Porter’s “Folly”—Why we must end the “Race to the bottom”

By William K Black

Eduardo Porter began by studying physics but decided not to complete his studies and pursue a career in that field in favor of becoming a journalist.  He worked for the Wall Street Journal before joining the New York Times, where he writes a periodic column.  His primary interest is now economics.  I was intrigued by a recent column he did entitled “The Folly of Attacking Outsourcing.”

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