Opening Segment #3:
'Outrage of the Day'
Wednesday, January 07, 2009
 

Jim:     
If There Were Arrests On Wall Street, I Think It Would Inspire Confidence On Main Street

As much as I love vigilante justice… there is only so far that it can take us… especially when it comes to financial chicanery… That is why, tonight, I am calling on Eric Holder… soon to be Obama’s Attorney General… and humbly requesting that he appoint Patrick Fitzgerald… or some other hard-nosed type… as a special U.S. Attorney for Financial Crimes… okay…

What kinds of crimes?…

We need a special prosecutor office for organized banking crime. Now, I am calling this "the Ricky Ricardo plan to restore confidence to our financial markets"… and also punish a lot of people… sometimes though of course I think of it as Rico Rum plan… The point is that this new special prosecutor needs to use… yes… the RICO statute to bring organized crime violations against these people who were in on the greatest financial collapse in history.

Yeah, I want to see some indictments… I want to see a sea of indictments… nah, make that a Marianna’s trench of subpoenas… I want investment bankers to be prosecuted… just like the financial mobsters that you and I know they really are. I want to see a RICO investigation of a major insurance company that trades under $2... I want to see investigations of who was selling what?... and when?... for all the brokers that are now defunct… and took their stocks to zero in preferreds, and you got wiped out…

I want to see subpoenas of all the off shore accounts that these people have… I want to see text book like prosecutions of those who assured us that their stocks were great... that they were great even when they were selling. Or knew more about the particulars than they revealed.

And what textbook am I talking about,
The Great Crash, by John Kenneth Galbraith… which details who was telling us that the fundamentals were fine and sound .. even as they were selling or shorting their own stocks.


 The Great Crash of 1929

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Market Results today:

Dow - 245

Nasdaq - 53

S&P 500:  - 28

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Wednesday, January 07, 2009
(Cont'd from above)...


Jim (cont'd):     

I want to see perp walks for heavens sake… I want to see Richard Belzer push them through… since Belzer’s on NBC’s Law and Order, and I am a team player… and also he is a huge fan of Mad Money… well, why not. I will also accept any police actor of our choice, to be determined later…Sam Waterston is clearly the role model for the person we need as the financial crime czar… but heck I will just take some fingerprints. We absolutely need this if we are ever going to restore confidence in our financial markets. The only way that is possible.. is if we get some genuine show trials… Now, normally I would be calling for some miscarriages of justice… as well as the suspension of the fifth amendment… if I weren’t not a fan of James Madison… as well as Dolly Madison’s ice cream… and I would be calling for suspension of habeas corpus too.… like Cramer fave Abe Lincoln… if I weren’t just an elder statesman and pacifist in the model of the Dolly Llama.. and of course Bishop TuTu… but remember people will not come back to the financial markets until they know that the bad guys are put away… they need to make this game clean again… and that won’t happen until heads roll… and we get some darkness at noon action.

 

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I am outraged, the people are outraged, you are outraged, Cramerica is outraged… and we need to do something about it… don’t forget… I am a lawyer… and I play one on TV… although, unlike Obama I did not make Corporate Law Review… cause I was too busy trading out of my dorm… if not knocking back a couple of Buds… and oh yeah dating… So the justice department had better start using RICO… and what we really need, of course, is something like the Keif Over hearings… except for this time for organized financial crimes… I want to see bankers with paper bags over their heads… although, the cynic in me we should use plastic… environmentally unsafe… and this time the Wall Street mafia… unlike Heiman Roth… won’t have a man on the committee. People say it is hard to prosecute this kind of crime… but believe me there will be witnesses galore who will testify… just look at this Madoff thing… many brokers and investment advisors thought he was making up his returns… well before he allegedly confessed… they were able to piece together, as I did the other night… what was allegedly happening cause they were furious at continuing to lose customers to something they knew was a pipe dream… these guys will make great RICO witnesses for the prosecution… where the heck is Charlton Heston anyway… we need him.. I love that movie.. I like Cameron Power, too.

Now, it gets better… here is what I call the two… it is so called in here… here is the kill two bird with one stone part of the equation. We need to build special white collar houses of correction… not the stock market kind of correction…but genuine prisons to store these guilty plutocrats… you know what… those put a lot of people to work… we can build them in hard hit areas like Youngstown, OH… or Ypsilanti, MI… lets call these new prisons country clubs for rich people… because of the redefinition of country club as Bernie Madoff preys on you… let me think, maybe better Madoff than a 6 foot 4 pumped up nemesis with white supremacy tats… best part… wherever you have white collar prisons… you also need to build brand new 5 star hotels… for the Williams and Conley and Paul Wise types who defend these people… Four Season Youngstown… Ritz Carlton Ypsilanti… The Ross Belt Rock resort…

Alright, this could turn out to be the biggest infrastructure project out there… which is good news… given that I am beginning to sour on the Obama infrastructure plan… which now seem like a pastiche… if not a mosaic…of crony hand outs to states.. an extension of unemployment benefits… my plan puts people to work… building hotels and prisons on the hop… come on Eric Holder get to work… this hat is a little hot…

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The Bottom Line!:     If we want to restore confidence in our financial markets.. we need to dust off the RICO act and start prosecuting bankers… or at least have some kind of truth and reconciliation committee like they had in South Africa… as long as we can still put people in prison when we are done. Holy cow, why didn’t someone tell me… this is a Lehman Brothers hat.

Throwing Criminals In Jail Could Be The Best Way To Restore Confidence To The Market...

Bust Out The RICO Stature And Start Prosecuting Financial Criminals...

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Jim went on after this segment to take questions from callers, and responded with his comments...

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Q:    I am a young investor and with all the scandal going on right now Bernard Madoff, and banks and financial institutions struggling. I am still holding on to my Wells Fargo shares. I believe that eventually the tides have to turn. What would your suggestions be to young investors like me? And how long should we hold onto these things? What should we expect?

Jim:    Whenever people think the economy is getting weaker they panic and sell the banks… you own the stock that I own for
ActionAlertsPlus.com, my charitable trust… in the bank that continues for Wells Fargo… Wells Fargo did pay a lot of money for Wachovia… but the fed is committed to taking mortgage rates down…that will not only be great for refinancing.. I think Well’s dividend is safe… obviously we have many negative people in the banks right now.. I think you own the pristine one … I like to have some bank exposure… I think that you are in probably the best one.. but remember it is going to be rocky and the stocks are still going lower.

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Q:    I have a question about the Madoff money. Where did it all go? Did the original investors have $50 million? Does he have it stashed in Switzerland? How come nobody is following the money?

Jim:    First, I think Becky Quick is… she was on Letterman the other night … and they say that it went into money heaven… okay, this is a case… okay, first of all I have to throw in a lot of alleged… alleged, alleged, alleged, alleged, alleged... there now I can start talking freely… this is the case where what happens is you put money in.. and we think, allegedly, he sent money right out… so there really wasn’t any money being made… remember we at Mad Money got… we got the actual data… and he is losing money on this strategy every single day… Many of the major firms had this strategy… everybody knew it… this is just a case, I believe… a case every time $2 came in $1 went out… and it didn’t disappear the money… what happened is he was losing it… he was losing it in the market. And it is just the greatest outrage of our time… and I believe that you will discover that many, many banks knew it… that many of the Feeder funds knew it… and that is why they put caveats at the end saying listen we think this could be fraudulent… I think that we will need a czar… that’s right a financial prosecutor just to after this kind of case.

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Q:    I was a shareholder in HSBC, they called themselves the worlds local bank. I sold the stock when it came to my attention that they had made financing loans to institutional clients in the neighborhood to the tune of $1 billion to invest with Madoff Investment Securities. On top of that, HSBC has custody clients who invested with Madoff. What happened to due diligence and the trust in your bank, broker, or financial advisor? Jim, where the heck does this end?

Jim:    I wish I knew. If we had a real SEC, that was actually run by a guy who actually enforced the law… if we had people who recognized that those kind of returns were just impossible to generate… it is up to the government… we actually need some protection now and then from the scamsters… and we didn’t get it.. people were reckless… people were not diversified… people made a lot of mistakes… but this was readily accessible.. and I believe that if you subpoena the heads of the top five investment banks, and their asset management that they would tell you… unlike HSBC perhaps… that they knew… that the amount of money that was being lost was staggering.. the knew it. They couldn’t come forward and do it.. it wasn’t their job. It was the governments job.

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