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Opening Segment #3: |
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'Outrage
of the Day' |
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Wednesday,
January 07, 2009 |
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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. |
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See comments continued below...
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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.
▼ ▼
▼ ▼
▼
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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