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We know, actually, friends, that if any of the real culprits (the managers at the top of the pyramid) of the vast international banking fraud had been prosecuted in open court (where the evidence was made public) and then sentenced to prison for their crimes (like those caught by Bill Black* in the S&L frauds in the 80's-90's), that the public couldn't have been so easily hoodwinked again*.
But that's been the name of the game since the Reagan Revolutionistas (I'm looking at you Ollie North) took over.
The marching orders were: "Get rid of the regulations and let the hoodwinking begin!"
Again.
Doomsday Clock for Global Market Crash Strikes One Minute to Midnight As Central Banks Lose Control
China currency devaluation signals endgame leaving equity markets free to collapse under the weight of impossible expectations
When the banking crisis crippled global markets seven years ago, central bankers stepped in as lenders of last resort. Profligate private-sector loans were moved on to the public-sector balance sheet and vast money-printing gave the global economy room to heal.
Time is now rapidly running out. From China to Brazil, the central banks have lost control and at the same time the global economy is grinding to a halt. It is only a matter of time before stock markets collapse under the weight of their lofty expectations and record valuations.
The FTSE 100 has now erased its gains for the year, but there are signs things could get a whole lot worse.
It is only a matter of time before stock markets collapse under the weight of their lofty expectations and record valuations.
1 - China slowdown
China was the great saviour of the world economy in 2008. The launching of an unprecedented stimulus package sparked an infrastructure investment boom. The voracious demand for commodities to fuel its construction boom dragged along oil- and resource-rich emerging markets.
• Ambrose Evans-Pritchard: China cannot risk the global chaos of currency devaluation
• Why China has devalued the renminbi
The Chinese economy has now hit a brick wall. Economic growth has dipped below 7pc for the first time in a quarter of a century, according to official data. That probably means the real economy is far weaker. (Click title link for chart.)
The People’s Bank of China has pursued several measures to boost the flagging economy. The rate of borrowing has been slashed during the past 12 months from 6pc to 4.85pc. Opting to devalue the currency was a last resort and signalled the great era of Chinese growth is rapidly approaching its endgame.
Data for exports showed an 8.9pc slump in July from the same period a year before. Analysts expected exports to fall only 0.3pc, so this was a huge miss.
The Chinese housing market is also in a perilous state. House prices have fallen sharply after decades of steady growth. For the millions who stored their wealth in property, it makes for unsettling times.
2 - Commodity collapse
The China slowdown has sent shock waves through commodity markets. The Bloomberg Global Commodity index, which tracks the prices of 22 commodity prices, fell to levels last seen at the beginning of this century.
The oil price is the purest barometer of world growth as it is the fuel that drives nearly all industry and production around the globe.
• Andrew Critchlow: Oil companies travel back to 1986 in search of a future
Brent crude, the global benchmark for oil, has begun falling once again after a brief rally earlier in the year. It is now hovering above multi-year lows at about $50 per barrel.
Iron ore is an essential raw material needed to feed China’s steel mills, and as such is a good gauge of the construction boom.
The benchmark iron ore price has fallen to $56 per tonne, less than half its $140 per tonne level in January 2014.
3 - Resource sector credit crisis
Billions of dollars in loans were raised on global capital markets to fund new mines and oil exploration that was only ever profitable at previous elevated prices.
With oil and metals prices having collapsed, many of these projects are now loss-making. The loans raised to back the projects are now under water and investors may never see any returns.
Nowhere has this been felt more acutely than shale oil and gas drilling in the US. Tumbling oil prices have squeezed the finances of US drillers. Two of the biggest issuers of junk bonds in the past five years, Chesapeake and California Resources, have seen the value of their bonds tumble as panic grips capital markets.
As more debt needs refinancing in future years, there is a risk the contagion will spread rapidly.
4 - Dominoes begin to fall
The great props to the world economy are now beginning to fall. China is going into reverse. And the emerging markets that consumed so many of our products are crippled by currency devaluation. The famed Brics of Brazil, Russia, India, China and South Africa, to whom the West was supposed to pass on the torch of economic growth, are in varying states of disarray.
• Is the global economy headed for another crash? Three signs to watch out for
• Regulators could be responsible for next financial crash
• Global stock markets jolted by China's historic renminbi devaluation
The central banks are rapidly losing control. The Chinese stock market has already crashed and disaster was only averted by the government buying billions of shares. Stock markets in Greece are in turmoil as the economy grinds to a halt and the country flirts with ejection from the eurozone.
Earlier this year, investors flocked to the safe-haven currency of the Swiss franc but as a €1.1 trillion quantitative easing programme devalued the euro, the Swiss central bank was forced to abandon its four-year peg to the euro.
5 - Credit markets roll over
As central banks run out of silver bullets then, credit markets are desperately seeking to reprice risk. The London Interbank Offered Rate (Libor), a guide to how worried UK banks are about lending to each other, has been steadily rising during the past 12 months. Part of this process is a healthy return to normal pricing of risk after six years of extraordinary monetary stimulus. However, as the essential transmission systems of lending between banks begin to take the strain, it is quite possible that six years of reliance on central banks for funds has left the credit system unable to cope.
Credit investors are often far better at pricing risk than optimistic equity investors. In the US while the S&P 500 (orange line) continues to soar, the high yield debt market has already begun to fall sharply (white line).
6 - Interest rate shock
Interest rates have been held at emergency lows in the UK and US for around six years. The US is expected to move first, with rates starting to rise from today’s 0pc-0.25pc around the end of the year. Investors have already starting buying dollars in anticipation of a strengthening US currency. UK rate rises are expected to follow shortly after.
7 - Bull market third longest on record
The UK stock market is in its 77th month of a bull market, which began in March 2009. On only two other occasions in history has the market risen for longer. One is in the lead-up to the Great Crash in 1929 and the other before the bursting of the dotcom bubble in the early 2000s.
UK markets have been a beneficiary of the huge balance-sheet expansion in the US. US monetary base, a measure of notes and coins in circulation plus reserves held at the central bank, has more than quadrupled from around $800m to more than $4 trillion since 2008. The stock market has been a direct beneficiary of this money and will struggle now that QE3 has ended.
8 - Overvalued US market
In the US, Professor Robert Shiller’s cyclically adjusted price earnings ratio – or Shiller CAPE – for the S&P 500 stands at 27.2, some 64pc above its historic average of 16.6. On only three occasions since 1882 has it been higher – in 1929, 2000 and 2007.
(Click here for chart)
Are you sweating yet?
23 Nations Around The World Where Stock Market Crashes Are Already Happening
Submitted by Tyler Durden_ _ _ _ _ _ _
08/18/2015
Submitted by Michael Snyder via The Economic Collapse blog,
You can stop waiting for a global financial crisis to happen. The truth is that one is happening right now. All over the world, stock markets are already crashing. Most of these stock market crashes are occurring in nations that are known as “emerging markets”. In recent years, developing countries in Asia, South America and Africa loaded up on lots of cheap loans that were denominated in U.S. dollars.
But now that the U.S. dollar has been surging, those borrowers are finding that it takes much more of their own local currencies to service those loans. At the same time, prices are crashing for many of the commodities that those countries export. The exact same kind of double whammy caused the Latin American debt crisis of the 1980s and the Asian financial crisis of the 1990s.
As you read this article, almost every single stock market in the world is down significantly from a record high that was set either earlier this year or late in 2014. But even though stocks have been sliding in the western world, they haven’t completely collapsed just yet.
In much of the developing world, it is a very different story. Emerging market currencies are crashing hard, recessions are starting, and equity prices are getting absolutely hammered.
Posted below is a list that I put together of 23 nations around the world where stock market crashes are already happening. To see the stock market chart for each country, just click the link…
1. Malaysia
2. Brazil
3. Egypt
4. China
5. Indonesia
6. South Korea
7. Turkey
8. Chile
9. Colombia
10. Peru
11. Bulgaria
12. Greece
13. Poland
14. Serbia
15. Slovenia
16. Ukraine
17. Ghana
18. Kenya
19. Morocco
20. Nigeria
21. Singapore
22. Taiwan
23. Thailand
Of course this is just the beginning. The western world is going to feel this kind of pain as well very soon. I want to share with you an excerpt from an article that just appeared in the "Telegraph" entitled “Doomsday clock for global market crash strikes one minute to midnight as central banks lose control“. You see, the "Telegraph" is not just one of the most important newspapers in the UK – it is truly one of the most important newspapers in the entire world. When it speaks on financial matters, millions of people listen very carefully. So for the "Telegraph" to declare that the countdown to a “global market crash” is “one minute to midnight” is a very, very big deal…
When the banking crisis crippled global markets seven years ago, central bankers stepped in as lenders of last resort. Profligate private-sector loans were moved on to the public-sector balance sheet and vast money-printing gave the global economy room to heal.I encourage you to read the rest of that excellent article right here. It contains lots of charts and graphs, and it discusses many of the exact same things that I have been hammering on for months.
Time is now rapidly running out. From China to Brazil, the central banks have lost control and at the same time the global economy is grinding to a halt. It is only a matter of time before stock markets collapse under the weight of their lofty expectations and record valuations.
When one of the newspapers of record for the entire planet starts sounding exactly like The Economic Collapse Blog, then you know that it is late in the game.
Others are sounding the alarm about an imminent global financial crash as well. For example, just consider what Egon von Greyerz recently told King World News…
Eric, I fear that this coming September – October all hell will break loose in the world economy and markets. A lot of factors point to that, both fundamental and technical indicators and this indicates that we could have a number of shocks this autumn.Hmm – there is another example of someone talking about September. It is funny how often that month keeps coming up.
Sadly, most investors will hold stocks, bonds and property and will see any decline in value as an opportunity. It will be a long time and a very big fall before they realize that the system will not help them this time because the central bankers have run out of ammunition to save the global financial system one more time. Yes, we will see more massive money printing, but it will just make things worse. And at some stage, which could be quite soon, real fear will set in, a fear of a magnitude the world has not experienced before.
And of course most of the major stock market crashes in U.S. history have been in the fall. Just go back and take a look at what happened in 1929, 1987, 2001 and 2008.
The “smart money” has been pulling their money out of stocks for quite a while now, and at this point a lot of others have hopped on the bandwagon. The following comes from CNBC…
The flight of investor money from U.S. stocks has turned into a stampede.A global financial crisis has already begun.
In fact, the $78.7 billion leaving domestic equity-focused funds has been worse in 2015 than it was even during the financial crisis years, when the S&P 500 tumbled some 60 percent, according to data released Friday by Morningstar. The total is the highest since 1993.
Domestic equity funds surrendered $20.4 billion in July alone and have seen $158.6 billion in redemptions over the past 12 months. Even a strong flow of money into passively managed exchange-traded funds has been unable to offset the stream to the exit among retail investors, who generally focus more on mutual funds than ETFs.
So those that were claiming that one would not happen in 2015 are already wrong.
Over the coming months we will find out how bad it will ultimately be.
Sometimes I get criticized for talking about these things. There are a few people out there that don’t like all of the “doom and gloom” that I discuss on my website. Apparently it is a bad thing to talk about the things that really matter and we should all just be “keeping up with the Kardashians” instead.
I consider myself just to be another watchman on the wall. From our spots on the wall, watchmen such as myself all over the nation are sounding the alarm about what we clearly see coming.
If we saw what was coming and we did not warn the people, their blood would be on our hands. But if we do warn the people, then we have done our duty.
Every day I just do the best that I can with what I have been given. And there are many others just like me that are doing exactly the same thing.
Those that do not like the warning message are going to feel really stupid when things start falling apart all around them and they finally realize how wrong they truly were.
Probably there's nothing to the following essay, of course (at least "nothing" to be done about it any time soon).
It's only Professor Paul Craig Roberts' opinion on the evidence he's been provided in the Tsarnaev case, and you know how tough he is on misinformation.
(And, yes, it's far tooo loooong for the time-challenged reader (or the time-addled - which describes us all at moments), but very, very edifying, and serving as a reminder that what we witnessed at that time through our muddled TV reporting was closer to the truth than what was arrived at much later in a U.S. court after millions of dollars of public expense and the sullied reputations of all who participated.)
August 17, 2015
FBI Evidence Proves Innocence of Accused Boston Marathon Bomber Dzhokhar Tsarnaev
Paul Craig Roberts
I have been contacted by attorney John Remington Graham, a member in good standing of the bar of the Minnesota Supreme Court and the United States Supreme Court. He informs me that acting in behalf of Maret Tsanaeva, the aunt of the accused Tsamaev brothers and a citizen of the Kyrgyz Republic where she is qualified to practice law, he has assisted her in filing with the US District Court in Boston a pro se motion, including an argument of amicus curiae, and an affidavit of Maret Tsarnaeva. The presiding judge has ordered that these documents be included in the formal record of the case so they will be publicly accessible.
The documents are reproduced below.
The documents argue that on the basis of the evidence provided by the FBI, there is no basis for the indictment of Dzhokhar Tsarnaev. The FBI’s evidence clearly concludes that the bomb was in a black knapsack, but the photographs used to establish Dzhokhar’s presence at the marathon show him with a white knapsack. Moreover, the knapsack lacks the heavy bulging appearance that a knapsack containing a bomb would have.
As readers know, I have been suspicious of the Boston Marathon Bombing from the beginning. It seems obvious that both Tsamaev brothers were intended to be killed in the alleged firefight with police, like the alleged perpetrators of the Charlie Hebdo affair in Paris. Convenient deaths in firefights are accepted as indications of guilt and solve the problem of trying innocent patsies.
In Dzhokhar’s case, his guilt was established not by evidence but by accusations, by the betrayal of his government-appointed public defender Judy Clarke who declared Dzhokhar’s guilt in her opening statement of her “defense,” by an alleged confession, evidence of which was never provided, written by Dzhokhar on a boat under which the badly wounded youth lay dying until discovered by the boat owner and hospitalized in critical condition. Following his conviction by his defense attorney, Dzhokhar allegedly confessed again in jihadist terms. As legal scholars have known for centuries, confessions are worthless as indicators of guilt.
Dzhokhar was not convicted on the basis of evidence.
In my questioning of John Remington Graham, I concluded that despite 48 years of active experience with criminal justice, both as a prosecuting attorney and defense attorney, he was shocked to his core by the legal malfeasance of the Tsarnaev case. As Graham is nearing the end of his career, he is willing to speak out, but he could not find a single attorney in the state of Massachusetts who would sponsor his appearance before the Federal District Court in Boston.
This tells me that fear of retribution has now extended its reach into the justice (sic) system and that the America that we knew where law was a shield of the people no longer exists.
Here is the Affidavit of Maret Tsarnaeva:
"AFFIDAVIT OF MARET TSARNAEVA CONCERNING THE PROSECUTION OF DZHOKHAR TSARNAEV
Mindful that this affidavit may be filed or displayed as an offer of proof with her authorization in public proceedings contemplated by the laws of the United States of America, and in reliance upon Title 28 of the United States Code, Section 1746, Maret Tsarnaeva deposes and says:
I am the paternal aunt of Dzhokhar Tsarnaev who has been prosecuted before the United States District Court for Massachusetts upon indictment of a federal grand jury returned on June 27, 2013, for causing one of two explosions on Boylston Street in Boston on April 15, 2013. In the count for conspiracy, certain other overt acts of wrongdoing are mentioned. As I understand the indictment, if Dzhokhar did not carry and detonate an improvised explosive device or pressure-cooker bomb as alleged, all thirty counts fail, although perhaps some lingering questions, about which I offer no comment here, might remain for resolution, subject to guarantees of due process of law, within the jurisdiction of the Commonwealth of Massachusetts.
I am currently living in Grozny, the capital of Chechnya which is a republic within the Russian Federation. My academic training included full-time studies in a five-year program of the Law Faculty at the Kyrgyz State University, and I also hold the degree of master of laws (LL. M.), with focus on securities laws, granted by the University of Manitoba while I lived in Canada. I am qualified to practice law in Kyrgyzstan. I am fluent in Russian, Chechen, and English, and am familiar with other languages. I am prepared to testify under oath in public proceedings in the United States, if my expenses are paid, and if my personal safety and right of return to my home in Chechnya are adequately assured in advance.
Aside from other anomalies and other aspects of the case on which I make no comment here, I am aware of several photo exhibits, upon which the Federal Bureau of Investigation (FBI) relied, or of evidence which their crime laboratory has produced, and certain other reports or material. Together, these plainly show that Dzhokhar was not carrying a large, nylon, black backpack, including a white-rectangle marking at the top, and containing a heavy pressure - cooker bomb, shortly before explosions in Boston on April 15, 2013, as claimed by the FBI and as alleged in the indictment for both explosions. On the contrary, these photo exhibits show unmistakably that Dzhokhar was carrying over his right shoulder a primarily white backpack which was light in weight, and was not bulging or sagging as would have been evident if it contained a heavy pressure-cooker bomb. The only reasonable conclusion is that Dzhokhar was not responsible for either of the explosions in question.
On or about June 20-21, 2013, during their first trip to Russia, which lasted about ten days more or less, Judy Clarke and William Fick, lawyers from the federal public defender’s office in Boston, visited my brother Anzor Tsarnaev, and his wife Zubeidat, respectively the father and mother of Dzhokhar. The meeting was at the home of Dzhokhar’s parents in Makhachka which is in the republic of Dagestan adjacent to the republic of Chechnya, and about three hours’ drive from Grozny. My mother, my sister Malkan, and I were present at this meeting. Zubeidat speaks acceptable English. Mr. Fick is fluent in Russian.
Laying aside other details of the conversation on June 20-21, 2013, I wish to note the following:
"— The lawyers from Boston strongly advised that Anzor and Zubeidat refrain from saying in public that Dzhokhar and his brother Tamerlan were not guilty. They warned that, if their advice were not followed, Dzhokhar’s life in custody near Boston would be more difficult;
— Mme Clarke and Mr. Fick also requested of Anzor and Zubeidat that they assist in influencing Dzhokhar to accept the legal representation of the federal public defender’s office in Boston. Mr. Fick revealed that Dzhokhar was refusing the services of the federal public defender’s office in Boston, and sending lawyers and staff away when they visited him in custody. In reaction to the suggestion of Mr. Fick, lively discussion followed;
— As Dzhokhar’s family, we expressed our concern that the federal public defender’s office in Boston was untrustworthy, and might not defend Dzhokhar properly, since they were paid by the government of the United States which was prosecuting him, as many believe for political reasons. Dzhokhar’s parents expressed willingness to engage independent counsel, since Dzhokhar did not trust his government-appointed lawyers. Mr. Fick reacted by saying that the government agents and lawyers would obstruct independent counsel;
— I proposed that Dzhokhar’s family hire independent counsel to work with the federal public defender’s office in order to assure proper and effective representation of Dzhokhar. Mr. Fick replied that, if independent counsel were hired by the family, the federal public defender’s office in Boston would withdraw;
— Mr. Fick then assured Anzor and Zubeidat that the United States Department of Justice had allotted $5 million to Dzhokhar’s defense, and that the federal public defender’s office in Boston intended to defend Dzhokhar properly. Zubeidat then and there said little concerning assurances of Mr. Fick. But for my part, I never believed that the federal public defender’s office in Boston ever intended to defend Dzhokhar as promised. And my impressions from what happened during the trial lead me to believe that the federal public defender’s office in Boston did not defend Dzhokhar competently and ethically.
In any event, I am aware that, following the meeting on June 20-21, 2013, Mme Clarke and Mr. Fick continued to spend time with Anzor and Zubeidat, and eventually persuaded Zubeidat to sign a typed letter in Russian to Dzhokhar, urging him to cooperate wholeheartedly with the federal public defender’s office in Boston. I am informed by my sister Malkan, that Zubeidat gave the letter to the public defenders, shortly before their departure from Russia on or about June 29, 2013, for delivery to Dzhokhar.
During subsequent trips Mme Clarke and Mr. Fick to see Dzhokhar’s parents in Makhachkala, the strategy for defending Dzhokhar was explained, as I learned from my sister Malkan. The public defender’s office in Boston intended to contend at trial, as actually has happened since, that Tamerlan, now deceased, was the mastermind of the crime, and that Dzhokhar was merely following his big brother. I was firmly opposed to this strategy as morally and legally wrong, because Dzhokhar is not guilty, as FBI-generated evidence shows.
Some ill-feeling has since developed between myself and Dzhokhar’s parents over their acquiescence.
On or about June 19, 2014, during their visit to Grozny over nearly two weeks, three staff members from the public defender’s office in Boston visited my mother and sisters in Grozny. I am told that they also visited Dzhokhar’s parents in Makhachkala.
The personnel visiting my mother and sisters in Grozny on or about June 19, 2014, included one Charlene, who introduced herself as an independent investigator, working in and with the federal public defender’s office in Boston; another by the name of Jane, a social worker who claimed to have spoken with Dzhokhar; and a third, by the name of Olga, who was a Russian-English interpreter from New Jersey. They did not leave business cards, but stayed at the main hotel in Grozny, hence I presume that their surnames can be ascertained.
I was not present at the meeting in Grozny on or about June 19, 2014, but my sister Malkan, who was present, called me by telephone immediately after the meeting concluded. She revealed to me then the details of the conversation at the meeting. Malkan and I have since spoken about the visit on several occasions.
Malkan speaks Russian and Chechen and is willing to testify under oath in public proceedings in the United States through an interpreter in Russian, if her expenses are paid, and if her personal safety and right of return to her home in Chechnya are adequately assured in advance. She relates, and has authorized me to state for her that, during the conversation on June 19, 2014, in Grozny, Charlene the independent investigator stated flatly that the federal public defender’s office in Boston knew that Dzhokhar was not guilty as charged, and that their office was under enormous pressure from law enforcement agencies and high levels of the government of the United States not to resist conviction. [Remember what happened to Lynne Stewart, the federally appointed public defender who actually served her client. She was sentenced to prison.]
This affidavit is executed outside of the United States, but the foregoing account is true to the best of my knowledge, information, and belief, and subject to the pains and penalties of perjury under the laws of the United States of America.
Given on this 17th day of April 2015.
/s/ Maret Tsarnaeva"
Here is the Argument of Amicus Curiae:
"UNITED STATES DISTRICT COURT DISTRICT OF MASSACHUSETTS
ARGUMENT OF AMICUS CURIAE No. 13-CR-10200-GAO
MAY IT PLEASE THE COURT:
1. Federal jurisdiction: The constitutional authority of the United States cannot be extended to the prosecution of Dzhokhar Tsarnaev in light of the opinion of the court in United States v. Lopez, 514 U. S. 549 (1995), and views of Alexander Hamilton in "The Federalist," Ns. 17, 22, and 34 [Clinton Rossiter (ed.), Mentor edition by New American Library, New York, 1961, pp. 118, 143-144, and 209]. Congress has broad power to regulate commerce, including trade and the incidents of trade, but domestic crimes and use of weapons are generally reserved to the States. If there is sufficient evidence to prosecute Dzhokhar for murder and mayhem, he should and can be prosecuted exclusively by the Commonwealth of Massachusetts. Accordingly, amicus urges that the indictment now pending should be dismissed, and the conviction of her nephew Dzhokhar Tsarnaev of charges under several acts of Congress should be vacated.
2. The actual innocence of the accused: Laying aside misgivings of amicus and many others about of the “official” scenario concerning this case, as broadcast to the world by the government and mainstream news media of the United States, evidence generated by the Federal Bureau of Investigation (FBI), confirmed on the judicial record of this cause, and clarified by the indictment, or suitable for judicial notice under Rule 201(b) of the Federal Rules of Evidence, conclusively proves that Dzhokhar Tsarnaev cannot be guilty of the crimes charged in this prosecution.
The formal indictment against Dzhokhar Tsarnaev was returned on June 27, 2013. The document is 74 pages long, and accuses Mr. Tsarnaev (hereinafter called Dzhokhar) of heinous crimes, including many counts punishable by death. The central event for which Dzhokhar is alleged to have been responsible, according to the indictment, took place, on Boylston Street, in front of the Forum Restaurant, near the finish line of the Boston marathon on April 15, 2013. The most important paragraphs of the indictment are numbered 6, 7, and 24 (including several other paragraphs repeating expressly or by implication the substance thereof).
Paragraphs 6-7, read in themselves and in context, state that, acting in concert with his (now deceased) brother, Dzhokhar set down on the sidewalk and detonated one of two “black backpacks” which contained “improvised explosive devices,” these “constructed from pressure cookers, low explosive power, shrapnel, adhesive, and other materials.” Paragraph 24 clarifies that the black backpack carried, and containing the pressure-cooker bomb allegedly detonated by Dzhokhar, was placed in front of the Forum Restaurant and was associated with the second explosion. The indictment says in paragraph 6 that both bombs exploded at about 2:49 in the afternoon (Eastern time), and that the bombs Dzhokhar and his brother placed and detonated each killed at least one person, and wounded scores of others.
On the morning after the explosions, i. e., on April 16, 2013, Richard DesLauriers, special agent in charge of the FBI in Boston, made a public statement at a press conference, which is published in printed form on the FBI website and in the news media concerning the facts later set forth in the indictment. Mr. DesLauriers said, as paragraphs 6-7 of the indictment substantially confirm,
“. . . this morning, it was determined that both of the explosives were placed in a dark-colored nylon bag or backpack. The bag would have been heavy, because of the components believed to be in it.
“. . . we are asking that the public remain alert, and to alert us to the following activity . . . someone who appeared to be carrying an unusually heavy bag yesterday around the time of the blasts and in the vicinity of the blasts.”
The FBI also published on April 16, 2013, a crime lab photo of a bomb fragment found after the explosions This photo is reproduced as Tsarnaeva exhibit 1 in the appendix hereof, and is believed proper for judicial notice.
From this bomb fragment, the FBI crime lab was able to reconstruct the size, shape, and type of pressure cookers, as was reported on information published by the FBI to the nation on ABC News Nightline on April 16, 2013. A still-frame, taken from (about 01:39-01:54) of this ABC television report, is reproduced as Tsarnaeva exhibit 2 in the appendix hereof, and is offered for judicial notice. A larger segment of this ABC Nightline News report (at about 01:31-02:14) elaborates facts set forth in paragraphs 6-7 of the indictment, including reference to three of the four exhibits reproduced in the appendix hereof. Each of the pressure cookers in question was a Fagor, 6-quart model, marketed in or near Boston and elsewhere in the United States by Macy’s. Its external dimensions are probably about 81⁄2 inches in height, including cover, and about 9 inches in diameter. Stripped of hard plastic handles and filled with nails, bee bees, and other such metal, then prepared as a bomb, it would cause a bag carrying it to be, as observed by the FBI chief in Boston during his press conference on April 16, 2013, “unusually heavy.”
Again on April 16, 2013, the FBI published a crime lab photo, here reproduced as Tsarnaeva exhibit 3 in the appendix hereof, and showing a blown-out backpack which is said to have contained one of the bombs, — a black nylon bag with a characteristic white rectangle marking about 3 by 11⁄2 inches more or less as it appeared following the explosions the day before. This photo pictures the “dark colored nylon bag or backpack” which Mr. DesLauriers described in his press conference on the day after the explosions when he described what was carried by the guilty parties.
It was one of the “black backpacks” referenced in paragraph 7 of the indictment. It is pictured in prosecution exhibit 26 which was introduced on the second day of the trial in this cause (day 28 on the transcript, March 5, 2015), showing that the bag or backpack in question was found on the street near the post box in front of the Forum Restaurant on Boylston Street, and, as previously noted, was associated with the second explosion on April 15, 2013, which, in paragraph 24 of the indictment, Dzhokhar is alleged to have detonated. This general impression is confirmed by defense exhibit 3090, showing a backpack with black exterior or covering, and introduced on the sixteenth day of the trial (day 42 on the transcript, March 31, 2015). Tsarnaeva exhibit 3 is also suitable for judicial notice.
On April 18, 2013, the FBI published a 29-second street video claimed to have been taken from Whiskey’s Steak House on Boylston Street at about 02:37- 38 o’clock in the afternoon (Eastern time), only minutes before the explosions on April 15, 2013. It definitively settles the principal question raised by the indictment and the plea of not guilty interposed against it. Part of this video is tucked into prosecution exhibit 22 introduced on the third day of the trial in this cause (day 29 on the transcript, March 9, 2015). From this street video, three still-frame photos have been extracted. Two of these still-frame photos were published by the FBI on April 18, 2013, on posters which were used to identify suspects.
All three photos were published by CNN and the Associated Press on April 19, 2013. The third still-frame photo from this video is most telling, and is reproduced as Tsarnaeva exhibit 4 in the appendix hereof. As already noted, the FBI and the indictment have together affirmed that the culprits who detonated these explosions were carrying large, unusually heavy, black backpacks concealing pressure-cooker bombs; but, the third still-frame photo from the Whiskey’s Steak House video reproduced as Tsarnaeva exhibit 4, and drawn from a street video already used by the FBI to identify the suspects and acknowledged by the government in this prosecution, shows unmistakably that, shortly before the explosions, Dzhokhar was carrying a small-size, white* backpack over his right shoulder the same light in weight, not heavy laden, and displaying no sagging or bulging as would normally be evident if the bag identified contained a pressure-cooker bomb of the size and weight which the FBI has described.
(*For all practical purposes and to the naked eye, the color is white, although technical computer analysis suggests a very whitish shade of gray.)
Dzhokhar is not guilty of carrying and detonating a pressure-cooker bomb, as charged in the indictment, as is literally as obvious as the difference between black and white. There were and remain other suspects whose identities have been credibly suggested. See, e. g., Toni Cartalucci, "Land Destroyer Report," April 19, 2013 (illustrated commentary entitled “‘Contractors’ Stood Near Bomb, Left Before Detonation.”). But here it is enough to reflect on the comment of Lord Acton that “historic responsibility has to make up for the want of legal responsibility.” — J. Rufus Fears, Selected Writings of Lord Acton, Liberty Fund, Indianapolis, 1985, Vol. 2, p. 383 (Letter to Mandell Creighton, April 5, 1887). Whatever is done in judicial proceedings, history will judge this case, as surely as history has judged other significant cases.
3. The grievance of amicus: It is impossible that federal prosecutors and counsel for the accused did not know of the exculpatory evidence which has just been identified and illustrated. Yet federal prosecutors went head without probable cause, as if decisive evidence of actual innocence, impossible to ignore in a diligent study of this case, did not exist, as is wholly unacceptable in light of Brady v. Maryland, 373 U. S. 83 at 86-87 (1963).
Moreover, in her opening statement at trial on March 4, 2015, as reflected in the fourth paragraph of the transcript of her comments, court-appointed counsel for the accused forcefully insisted that Dzhokhar was guilty of capital felonies, as is positively disproved by evidence generated by the FBI, reinforced by the indictment itself.
She said,
“The government and the defense will agree about many things that happened during the week of April 15th, 2013. On Marathon Monday, Tamerlan Tsarnaev walked down Boylston Street with a backpack on his back, carrying a pressure cooker bomb, and put it down in front of Marathon Sports near the finish line of the Marathon. Jahar [i. e., Dzhokhar] Tsarnaev walked down Boylston Street with a backpack on his back carrying a pressure cooker bomb and placed it next to a tree in front of the Forum Restaurant. The explosions extinguished three lives.”
And in her summation to the jury on April 6, 2015, as the transcript shows, court-appointed counsel for the accused said nothing of the exculpatory evidence in this case. She did not even ask for a verdict of not guilty. She could hardly have done more to promote a conviction and the severest sentence possible, even though the third still-frame photo from the video at Whiskey’s Steak House, reproduced as Tsarnaeva exhibit 4, showed Dzhokhar carrying a white backpack, as alone was enough to defeat the indictment insofar as paragraph 7 thereof averred that the accused and his brother committed the principal acts of wrongdoing by carrying and setting down black backpacks. Such misconduct is altogether unacceptable in light of Strickland v. Washington, 446 U. S. 668 at 687- 688 (1984).
The misconduct of which amicus complains served to conceal decisive exculpatory evidence by legerdemain. Amicus urges not only that the death penalty may not be imposed in this case, for all three opinions in Herrera v. Collins, 506 U. S. 390 (1993), allow that the death penalty may not be constitutionally imposed where the accused is demonstrably innocent, but that sua sponte this court order a new trial with directions that new counsel for the accused be appointed, motivated to provide an authentic defense for Dzhokhar.
4. The corpus delicti: Paragraph 10 of the indictment recites a statement in the nature of a confession by Dzhokhar written on the inner walls of a boat in Watertown. But with respect to any and all evidence offered or treated as suggesting an extrajudicial admission of guilt in this case, amicus cites the penetrating observation by Sir William Blackstone in his Commentaries on the Laws of England, Edward Christian, London, 1765, Book IV, p. 357: “[E]ven in cases of felony at common law, [confessions] are the weakest and most suspicious of all testimony, ever liable to be obtained by artifice, false hopes, promises of favour, or menaces, seldom remembered accurately, or reported with due precision, and incapable in their nature of being disproved by other negative evidence.”
Amicus and countless others suspect that the alleged confession in the boat was staged as artifice to suit the government’s case, and not authentic. But she stands on ancient wisdom which casts doubt on all extrajudicial confessions without adequate safeguards, including the rule that an extrajudicial confession is insufficient to convict, unless the corpus delicti be sufficiently proved up. The rule is defined with various degrees of rigor from jurisdiction to jurisdiction. In federal courts, in any event, the corroboration required to sustain a confession or statement in the nature of a confession need only be independent, substantial, and reveal the words in question to be reasonably trustworthy, as appears, e. g., in Opper v. United States, 348 U. S. 84 (1954).
If such be the law here applicable, the required corroboration in this case must include evidence showing that Dzhokhar actually carried a large, heavy, black backpack on Boylston Street before the explosions on the afternoon on April 15, 2013, as claimed by the FBI and alleged in the indictment. Tsarnaeva exhibit 4, a product of investigation by the FBI, shows plainly that Dzhokhar did no such thing, hence no required corroboration has been established
5. Closing remarks: The views here expressed are not unique, but shared by good Americans, and others the world over. The undersigned and her sister Malkan are prepared to testify as expressed in the affidavit filed in support of the motion for leave to file a submission as amicus curiae. This argument is
Respectfully submitted,
May 15, 2015 /s/ Maret Tsarnaeva
Zhigulevskaya Str. 7, Apt. 4
364000 Grozny, Chechen Republic, RF Telephone: 011-7-938-899-1671"
APPENDIX TSARNAEVA EXHIBIT 1 (Click on title for photos of exhibits)
This is the communication I received from attorney John Remington Graham:
"TO DR. PAUL CRAIG ROBERTS, GREETING:
Dear Sir, — By way of introduction. I have practiced criminal law for nearly forty-eight years, both prosecuting and defending, and served as a founding professor in an accredited law school in my native Minnesota. I have appeared as counsel before courts of record in sixteen jurisdictions, and have a background in forensic science and medicine. I can provide a résumé on request.
On March 25, 2015, while the trial was underway, I wrote and distributed a short opinion on the prosecution of Dzhokhar Tsarnaev, accused of capital felonies in Boston on April 15, 2013 in United States v. Dzhokhar Tsarnaev, No. 13-CR-10200-GAO on the docket of the United States District Court for Massachusetts, commonly known as the “Boston marathon case”, or “the Boston bomber case”. I used eight photo exhibits to explain my conclusions that, as a matter of law, there was no probable cause to support the indictment, and that Mr. Tsanaev was plainly not guilty as charged. These views were shared by others reporting on the internet, but my opinion was meant to provide professional assurance to fellow citizens that, legally speaking, something was radically wrong with the prosecution. In fact there were then and still are a great many anomalies with the case.
The substance of the Boston marathon case, as I then saw it, and as I still see it, is that, on the day after the explosions on Boylston Street in Boston, the FBI crime lab determined from fragments at the crime scene, the FBI chief in Boston announced, and the indictment itself later confirmed that, shortly before the explosions, the culprits were carrying large, heavy-laden, black backpacks containing pressure cooker bombs. Two days later, the FBI chief in Boston stated publicly that the suspects were identified by a certain street surveillance video, which for some days was later displayed for public viewing on the FBI website.
The video had been taken from Whiskey’s Steak House, and was used to create still-frame photos of Tamerlan Tsarnaev (the big brother, now deceased), and Dzhokhar Tsarnaev (the little brother, later accused) as they walked up Boylson Street toward the finish line of the Boston marathon, shortly before the bombs went off. These two still frames were featured on posters distributed by the FBI in soliciting cooperation from the general public. But there is a third still-frame photo, taken from the same video, which shows unmistakably that Dzhokhar was carrying a small, light-weight, white backpack. The backpack carried by Dzhokhar was flat, and did not sag or bulge as would have been apparent if it contained a pressure cooker bomb filled with shrapnel as described in the indictment. This third still-frame photo was published by the major news media of the United States. I retrieved my first copy of this third still-frame photo from an internet report of CNN on April 19, 2015.
The bottom line is that the FBI’s own evidence eliminates Dzhokhar as a suspect, and conclusively proves he is not guilty as charged. This reality is literally as clear as the difference between black and white. The establishment press knew about it, and I cannot imagine how the federal prosecutors and counsel for the accused could not have known about it.
So obvious was the actual innocence of Dzhokhar Tsarnaev that there was no need for a trial at all, because a good criminal defense lawyer could have taken the FBI information published the day after the explosions, the text of the indictment, and the third still-frame photo from the street surveillance video used by the FBI to identify suspects, and employed those items to support a pre-trial motion for dismissal of the indictment. I have on many occasions made such motions or seen such motions made by colleagues in federal courts, based on facts revealed by disclosures which prosecutors must and routinely do make available to counsel for the accused under a famous decision of the United States Supreme Court. And I have seen such motions granted on not a few occasions. Such practice is not uncommon, as I know from my own experience.
What was going on in Dzhokhar’s case? Why was there no motion to dismiss the indictment based on indisputable facts? Why was there a trial at all? Why did Judy Clarke, a big-time death-penalty lawyer appointed to defend Dzhokhar, admit to the jury in her opening statement that her client was guilty? She had decisive evidence that her client was not guilty.
Why did she not use it, bring the case to an end, and thereby save her client’s life? In her final summation to the jury, Mme Clarke did not even ask for a verdict of not guilty. She made no mention of the exculpatory evidence generated by the FBI and mentioned in the indictment. Available were widely published photographs of possible paramilitary agents near the crime scene in Boston about the time of the explosions, carrying large, heavy-laden, black backpacks with characteristic markings which the FBI crime lab material revealed. But these persons with black backpacks were never investigated by the FBI. Why not?
I contacted Maret Tsarnaeva, the paternal aunt of Dzhokhar living in Chechnya which is part of the Russian Federation, a lawyer trained in the old Russian school of law in the Kyrgyz Republic which was once part of the Russian Empire and the Soviet Union, but has been independent since the conclusion of the former Cold War. A very bright and interesting woman Maret turned out to be, and, from the beginning, she maintained that her nephew was not guilty. My conversations with her over Skype led me to conclude that Judy Clarke and her colleagues in the federal public defender’s office in Boston could not stand up to the political pressure and thus threw the case instead of defending Dzhokhar.
Mme Tsarnaeva executed an affidavit on April 17, 2015, which explains events when representatives of the federal public defender’s office in Boston met with Dzhokhar’s family in Russia. For those interested in details, I attach a copy of her affidavit exactly as sent to me by Maret from Russia and later filed with the federal district court in Boston, except that the affidavit filed in the federal district court includes Maret’s original signature in Russian script which I can verify with my business records.
Maret hoped to call exculpatory evidence to the attention of the presiding judge, because Dzhokhar’s lawyers were not defending the accused and federal prosecutors were acting without probable cause. After diligent research on options was made, Maret decided to attempt an appearance before the federal district court in Boston as a friend of the court. She had to apply to the presiding judge for permission to appear in this capacity, and to make a motion asking the court to appointment me as her personal counsel for this purpose on special occasion. Normally, to be admitted to practice before the court on special occasion, I would need a motion from a member of the local bar. My paralegal assistant and I contacted many lawyers in Massachusetts. Some were sympathetic, but none dared to participate, lest their reputations be harmed. I had practiced before the federal district court in Boston some years previously, and then had no difficulty in securing the routine courtesy of a member of the local bar in sponsoring my appearance on special occasion.
But not even the American Civil Liberties Union in Massachusetts dared to assist Maret or myself. I had to assist Maret in making an intervention pro se, representing herself, while she listed me as “of counsel” so as to signal that she was guided by a lawyer, and asked the presiding judge to admit me on special occasion without sponsoring motion of a member of the local bar, due to unusual circumstances. On instructions of court personnel, we could not proceed on the electronic record, and Maret’s pro se motion with supporting documents was served upon the federal district attorney and the federal public defender in paper and by registered mail, and the papers had to be filed with the office of the clerk of the federal district court, again in paper and regular postal service. But our task was accomplished by May 29, 2015.
For your convenience, I attach herewith the formal argument made by Maret Tsarnaeva acting pro se with my guidance, exactly as filed in the federal district court in Boston, except that the copy served and filed included the signature of Maret Tsarnaeva in Russian script, as I can demonstrate from my business records. We showed by text and exhibits, and by reference to the trial record and FBI-generated evidence that Dzhokhar cannot be guilty, because the FBI determined and the indictment alleged that the culprits carried black backpacks, but the FBI’s evidence showed that Dzhokhar was carrying a white backpack.
Maret expressed her grievances against the unethical misconduct of the federal prosecutors in proceeding when they knew they had no probable cause, and the unethical misconduct of court-appointed counsel in not defending in earnest. We enclosed the four most critical photo exhibits, including the results of the FBI crime lab investigation and the exculpatory third still-frame photo from the video used by the FBI to identify the culprits.
I am aware that many incredulous citizens cannot accept that the government of the United States would stage a show trial in Boston to convict an innocent young man and sentence him to death. But such events are not unusual in history. Judicial murder spoils the history of many nations. These incredulous citizens point to Dzhokhar’s alleged confession statements inside the boat in Watertown and at the time of sentencing. But contrary to the beliefs of the uninitiated, it has been clear from ancient times that confession statements are the weakest and most suspicious of all testimony, as is stated by legal scholars going back many centuries. Maret’s pro se argument cited Sir William Blackstone, from whom the founding fathers of the United States learned the law, for this truth. False confessions are very common, and result from fabrication, artifice, duress, unfounded hopes, attempts to curry favor, even brainwashing. Hence, going back centuries the law has struggled to develop safeguards against false confessions.
The intervention by Maret Tsarnaeva (o)n behalf of her nephew in the Boston marathon case is significant because, although denying her motion to appear as a friend of the court, the presiding judge entered an order, which appears on the electronic record, is numbered 1469, and directs that her filings be maintained by the office of the clerk of the federal district court in Boston. These documents should be accessible to those wishing to see and read them. Therefore, it is a matter of public record, not merely a matter of internet protest or gossip, that the federal prosecutors, the court-appointed lawyers for the accused, and the presiding judge are all aware of the FBI’s own evidence which excludes Dzhokhar Tsarnaev as a suspect, and proves his actual innocence. It is also clear that the major news media of the United States, which orchestrated a false appearance that Dzhokhar was guilty of heinous crimes, and called for his execution, were aware that he was not guilty. They knew, as the report of CNN four days after marathon Monday makes plain, that Dzhokhar was in fact carrying a small, light-weight, white backpack, and that the government’s own evidence shows that the culprits, whoever they were, carried large, heavy-laden, black backpacks.
30 years?
Intentional chaos and murder?
Coming up!
The “New Thirty Years War” in the Middle East: A Western Policy of Chaos?_ _ _ _ _ _ _
* BILL MOYERS: The cover up?
WILLIAM K. BLACK: Sure. The cover up.
BILL MOYERS: That's a serious charge.
WILLIAM K. BLACK: Of course.
BILL MOYERS: Who's covering up?
WILLIAM K. BLACK: Geithner is charging, is covering up. Just like Paulson did before him. Geithner is publicly saying that it's going to take $2 trillion — a trillion is a thousand billion — $2 trillion taxpayer dollars to deal with this problem. But they're allowing all the banks to report that they're not only solvent, but fully capitalized. Both statements can't be true. It can't be that they need $2 trillion, because they have mass[ive] losses, and that they're fine.
These are all people who have failed. Paulson failed, Geithner failed. They were all promoted because they failed, not because...
BILL MOYERS: What do you mean?
WILLIAM K. BLACK: Well, Geithner has, was one of our nation's top regulators, during the entire subprime scandal, that I just described. He took absolutely no effective action. He gave no warning. He did nothing in response to the FBI warning that there was an epidemic of fraud. All this pig in the poke stuff happened under him. So, in his phrase about legacy assets. Well he's a failed legacy regulator. ...
BILL MOYERS: To hear you say this is unusual because you supported Barack Obama, during the campaign. But you're seeming disillusioned now.
WILLIAM K. BLACK: Well, certainly in the financial sphere, I am. I think, first, the policies are substantively bad. Second, I think they completely lack integrity. Third, they violate the rule of law. This is being done just like Secretary Paulson did it. In violation of the law. We adopted a law after the Savings and Loan crisis, called the Prompt Corrective Action Law. And it requires them to close these institutions. And they're refusing to obey the law.
BILL MOYERS: In other words, they could have closed these banks without nationalizing them?
WILLIAM K. BLACK: Well, you do a receivership. No one -- Ronald Reagan did receiverships. Nobody called it nationalization.
BILL MOYERS: And that's a law?
WILLIAM K. BLACK: That's the law.
BILL MOYERS: So, Paulson could have done this? Geithner could do this?
WILLIAM K. BLACK: Not could. Was mandated--
BILL MOYERS: By the law.
WILLIAM K. BLACK: By the law.
BILL MOYERS: This law, you're talking about.
WILLIAM K. BLACK: Yes. ...
BILL MOYERS: This law, you're talking about.
WILLIAM K. BLACK: Yes.
BILL MOYERS: What the reason they give for not doing it?
WILLIAM K. BLACK: They ignore it. And nobody calls them on it.
BILL MOYERS: Well, where's Congress? Where's the press? Where--
WILLIAM K. BLACK: Well, where's the Pecora investigation? [2009-03-15]
BILL MOYERS: The what? ...
BILL MOYERS: Yeah. Are you saying that Timothy Geithner, the Secretary of the Treasury, and others in the administration, with the banks, are engaged in a cover up to keep us from knowing what went wrong?
WILLIAM K. BLACK: Absolutely.
BILL MOYERS: You are.
For this, we have Geithner-san a pass on his tax problems?
WILLIAM K. BLACK: Absolutely, because they are scared to death. All right? They're scared to death of a collapse. They're afraid that if they admit the truth, that many of the large banks are insolvent. They think Americans are a bunch of cowards, and that we'll run screaming to the exits. And we won't rely on deposit insurance. And, by the way, you can rely on deposit insurance. And it's foolishness. All right? Now, it may be worse than that. You can impute more cynical motives. But I think they are sincerely just panicked about, "We just can't let the big banks fail." That's wrong.
BILL MOYERS: But what might happen, at this point, if in fact they keep from us the true health of the banks?
WILLIAM K. BLACK: Well, then the banks will, as they did in Japan, either stay enormously weak, or Treasury will be forced to increasingly absurd giveaways of taxpayer money. We've seen how horrific AIG -- and remember, they kept secrets from everyone.
BILL MOYERS: A.I.G. did?
WILLIAM K. BLACK: What we're doing with -- no, Treasury and both administrations. The Bush administration and now the Obama administration kept secret from us what was being done with AIG. AIG was being used secretly to bail out favored banks like UBS and like Goldman Sachs. Secretary Paulson's firm, that he had come from being CEO. It got the largest amount of money. $12.9 billion. And they didn't want us to know that. [Corrente, numerous posts, 2008-2009] And it was only Congressional pressure, and not Congressional pressure, by the way, on Geithner, but Congressional pressure on AIG.
Where Congress said, "We will not give you a single penny more unless we know who received the money." And, you know, when he was Treasury Secretary, Paulson created a recommendation group to tell Treasury what they ought to do with AIG. And he put Goldman Sachs on it.
BILL MOYERS: Even though Goldman Sachs had a big vested stake.
WILLIAM K. BLACK: Massive stake. And even though he had just been CEO of Goldman Sachs before becoming Treasury Secretary. Now, in most stages in American history, that would be a scandal of such proportions that he wouldn't be allowed in civilized society.
BILL MOYERS: Yeah, like a conflict of interest, it seems.
WILLIAM K. BLACK: Massive conflict of interests.
BILL MOYERS: So, how did he get away with it?
WILLIAM K. BLACK: I don't know whether we've lost our capability of outrage. Or whether the cover up has been so successful that people just don't have the facts to react to it.
BILL MOYERS: Who's going to get the facts?
WILLIAM K. BLACK: We need some chairmen or chairwomen--
BILL MOYERS: In Congress.
WILLIAM K. BLACK: --in Congress, to hold the necessary hearings. And we can blast this out. But if you leave the failed CEOs in place, it isn't just that they're terrible business people, though they are. It isn't just that they lack integrity, though they do. Because they were engaged in these frauds. But they're not going to disclose the truth about the assets.
BILL MOYERS: And we have to know that, in order to know what?
WILLIAM K. BLACK: To know everything. To know who committed the frauds. Whose bonuses we should recover. How much the assets are worth. How much they should be sold for. Is the bank insolvent, such that we should resolve it in this way? It's the predicate, right? You need to know the facts to make intelligent decisions. And they're deliberately leaving in place the people that caused the problem, because they don't want the facts. And this is not new. The Reagan Administration's central priority, at all times, during the Savings and Loan crisis, was covering up the losses.
BILL MOYERS: So, you're saying that people in power, political power, and financial power, act in concert when their own behinds are in the ringer, right?
WILLIAM K. BLACK: That's right. And it's particularly a crisis that brings this out, because then the class of the banker says, "You've got to keep the information away from the public or everything will collapse. If they understand how bad it is, they'll run for the exits."
Are there any questions (now) about why Galbraith's response to Geithner-san's plan was SHOW ME THE LOAN TAPES? Those tapes are evidence of massive fraud -- and if the banksters destroyed the evidence I bet that's a crime worse than fraud.
And let's suppose that the mortgages themselves are based on fraud, larger than Enron. What will that do to the value of the derivatives based on them? Could that be the reason they're no market for then? Because they're shit and all the smart money knows it?
And I guess we have our explanation for why the bailouts have no accountability and no transparency under this administration or the last one: The banksters run Versailles, and the role of the administration they own is to cover up their crimes and stick this generation of taxpayers and the next with a multi-trillion-dollar bill -- all after they looted our 410(ks)s, destroyed our homes, and threw millions of us out of work. Well done, all.
UPDATE Did a quick run through our famously free press to see what kind of play this story is getting. Nothing on Google (10:51 AM, EST); ditto Yahoo (10:53); the better A listers (Atrios; Hamsher) are on it; and The Obama 527 Formerly Known As Daily Kos is schizophrenic: Front-pagers on (gawd help us) Sarah Palin and Evan Bayh*. OTOH, here's the top recommended diary: "Moyers drops bailout bomb on Obama" -- a good post that gives the code section. There's plenty from the pom-pom brigade in the comments (the word "Krugman" is still a hate trigger, though by this point attenuated) but they're clearly fighting a rear-guard action; their arguments are worse, and their talking points are stale.
What I'm waiting for is the honest insiders -- people like Krugman, Stiglitz, Roubini, Buiter -- to weigh in. Nothing so far. If we don't hear anything from them, that's going to be extremely disappointing.
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