“In recent months, it has become apparent that Spain is suffering from an increase in bank robberies,” said Francisco Pérez Abellán, head of the criminology department at the University of Camilo José Cela in Madrid. “We are seeing people committing offenses through necessity, first-time offenders who can no longer continue to maintain their lifestyle and so turn to crime.” Continue
Three clever crooks used the classic switcherooo to swipe a black duffel bag loaded with $120,000 of gold, diamonds and cash from a Grand Central Terminal jeweler, officials said today.
Two employees from My Oro USA Inc. were carrying the 800 pieces of jewelry in a black duffel bag last month when the employee carrying the bag briefly put it down to throw away some garbage, MTA Police said. Continue
First Blood Diamonds, Now Blood Computers?
When the film Blood Diamond came out in 2006, people were startled at the alleged origins of the precious stones from areas of bloody conflict and began asking whether the jewels on their fingers cost a human life. Will consumers soon find themselves asking similar questions about their cell phones and computers?
In a report released earlier this week, Global Witness claims that multinational companies are furthering a trade in minerals at the heart of the hi-tech industry that feeds the horrendous civil war in the Democratic Republic of Congo (DRC). (Global Witness is the same nongovernmental organization that helped expose the violence that plagues many of the sources of diamonds.) However, the accused companies, with varying degrees of hostility, deny any culpability, saying Global Witness oversimplifies a complex economic process in a chaotic geopolitial setting. Continue
Teen arrested in brazen Philadelphia jewelry heist
Police have arrested a teenager for allegedly taking part in a brazen $220,000 watch heist at an upscale Philadelphia department store.
Police say officers arrested a 19-year-old on Wednesday night and charged him with robbery, criminal conspiracy and other charges. Investigators say Williams was one of four men who stormed into the Boyd’s department store in downtown Philadelphia on June 4 and made off with $220,000 worth of high-end watches. Continue
Michael Porfirio Mason
AKA The Peoples Champ
AKA GFK, Jr.
AKA The Sly, Slick and the Wicked
AKA The Voodoo Child
The Guide to Getting More out of Life
http://www.thegmanifesto.com
The first thing you need to know about Goldman Sachs is that it’s everywhere. The world’s most powerful investment bank is a great vampire squid wrapped around the face of humanity, relentlessly jamming its blood funnel into anything that smells like money. In fact, the history of the recent financial crisis, which doubles as a history of the rapid decline and fall of the suddenly swindled dry American empire, reads like a Who’s Who of Goldman Sachs graduates.
By now, most of us know the major players. As George Bush’s last Treasury secretary, former Goldman CEO Henry Paulson was the architect of the bailout, a suspiciously self-serving plan to funnel trillions of Your Dollars to a handful of his old friends on Wall Street. Robert Rubin, Bill Clinton’s former Treasury secretary, spent 26 years at Goldman before becoming chairman of Citigroup — which in turn got a $300 billion taxpayer bailout from Paulson. There’s John Thain, the asshole chief of Merrill Lynch who bought an $87,000 area rug for his office as his company was imploding; a former Goldman banker, Thain enjoyed a multibilliondollar handout from Paulson, who used billions in taxpayer funds to help Bank of America rescue Thain’s sorry company. And Robert Steel, the former Goldmanite head of Wachovia, scored himself and his fellow executives $225 million in goldenparachute payments as his bank was selfdestructing. There’s Joshua Bolten, Bush’s chief of staff during the bailout, and Mark Patterson, the current Treasury chief of staff, who was a Goldman lobbyist just a year ago, and Ed Liddy, the former Goldman director whom Paulson put in charge of bailedout insurance giant AIG, which forked over $13 billion to Goldman after Liddy came on board. The heads of the Canadian and Italian national banks are Goldman alums, as is the head of the World Bank, the head of the New York Stock Exchange, the last two heads of the Federal Reserve Bank of New York — which, incidentally, is now in charge of overseeing Goldman — not to mention …
But then, any attempt to construct a narrative around all the former Goldmanites in influential positions quickly becomes an absurd and pointless exercise, like trying to make a list of everything. What you need to know is the big picture: If America is circling the drain, Goldman Sachs has found a way to be that drain — an extremely unfortunate loophole in the system of Western democratic capitalism, which never foresaw that in a society governed passively by free markets and free elections, organized greed always defeats disorganized democracy.
BUBBLE #1 The Great Depression
Goldman wasn’t always a too-big-to-fail Wall Street behemoth, the ruthless face of kill-or-be-killed capitalism on steroids — just almost always. The bank was actually founded in 1869 by a German immigrant named Marcus Goldman, who built it up with his soninlaw Samuel Sachs. They were pioneers in the use of commercial paper, which is just a fancy way of saying they made money lending out shortterm IOUs to smalltime vendors in downtown Manhattan.
You can probably guess the basic plotline of Goldman’s first 100 years in business: plucky, immigrantled investment bank beats the odds, pulls itself up by its bootstraps, makes shitloads of money. In that ancient history there’s really only one episode that bears scrutiny now, in light of more recent events: Goldman’s disastrous foray into the speculative mania of precrash Wall Street in the late 1920s.
Rolling Stone’s Matt Taibbi on the Media
BUBBLE #2 Tech Stocks
Fast-forward about 65 years. Goldman not only survived the crash that wiped out so many of the investors it duped, it went on to become the chief underwriter to the country’s wealthiest and most powerful corporations. Thanks to Sidney Weinberg, who rose from the rank of janitor’s assistant to head the firm, Goldman became the pioneer of the initial public offering, one of the principal and most lucrative means by which companies raise money. During the 1970s and 1980s, Goldman may not have been the planet-eating Death Star of political influence it is today, but it was a topdrawer firm that had a reputation for attracting the very smartest talent on the Street.
It also, oddly enough, had a reputation for relatively solid ethics and a patient approach to investment that shunned the fast buck; its executives were trained to adopt the firm’s mantra, “longterm greedy.” One former Goldman banker who left the firm in the early Nineties recalls seeing his superiors give up a very profitable deal on the grounds that it was a longterm loser. “We gave back money to ‘grownup’ corporate clients who had made bad deals with us,” he says. “Everything we did was legal and fair — but ‘longterm greedy’ said we didn’t want to make such a profit at the clients’ collective expense that we spoiled the marketplace.”
BUBBLE #3 The Housing Craze
Goldman’s role in the sweeping global disaster that was the housing bubble is not hard to trace. Here again, the basic trick was a decline in underwriting standards, although in this case the standards weren’t in IPOs but in mortgages. By now almost everyone knows that for decades mortgage dealers insisted that home buyers be able to produce a down payment of 10 percent or more, show a steady income and good credit rating, and possess a real first and last name. Then, at the dawn of the new millennium, they suddenly threw all that shit out the window and started writing mortgages on the backs of napkins to cocktail waitresses and excons carrying five bucks and a Snickers bar.
None of that would have been possible without investment bankers like Goldman, who created vehicles to package those shitty mortgages and sell them en masse to unsuspecting insurance companies and pension funds. This created a mass market for toxic debt that would never have existed before; in the old days, no bank would have wanted to keep some addict ex-con’s mortgage on its books, knowing how likely it was to fail. You can’t write these mortgages, in other words, unless you can sell them to someone who doesn’t know what they are.
BUBBLE #4 $4 a Gallon
By the beginning of 2008, the financial world was in turmoil. Wall Street had spent the past two and a half decades producing one scandal after another, which didn’t leave much to sell that wasn’t tainted. The terms junk bond, IPO, subprime mortgage and other once-hot financial fare were now firmly associated in the public’s mind with scams; the terms credit swaps and CDOs were about to join them. The credit markets were in crisis, and the mantra that had sustained the fantasy economy throughout the Bush years — the notion that housing prices never go down — was now a fully exploded myth, leaving the Street clamoring for a new bullshit paradigm to sling.
Where to go? With the public reluctant to put money in anything that felt like a paper investment, the Street quietly moved the casino to the physical-commodities market — stuff you could touch: corn, coffee, cocoa, wheat and, above all, energy commodities, especially oil. In conjunction with a decline in the dollar, the credit crunch and the housing crash caused a “flight to commodities.” Oil futures in particular skyrocketed, as the price of a single barrel went from around $60 in the middle of 2007 to a high of $147 in the summer of 2008.
BUBBLE #5 Rigging the Bailout
After the oil bubble collapsed last fall, there was no new bubble to keep things humming — this time, the money seems to be really gone, like worldwide-depression gone. So the financial safari has moved elsewhere, and the big game in the hunt has become the only remaining pool of dumb, unguarded capital left to feed upon: taxpayer money. Here, in the biggest bailout in history, is where Goldman Sachs really started to flex its muscle.
It began in September of last year, when then-Treasury secretary Paulson made a momentous series of decisions. Although he had already engineered a rescue of Bear Stearns a few months before and helped bail out quasi-private lenders Fannie Mae and Freddie Mac, Paulson elected to let Lehman Brothers — one of Goldman’s last real competitors — collapse without intervention. (“Goldman’s superhero status was left intact,” says market analyst Eric Salzman, “and an investmentbanking competitor, Lehman, goes away.”) The very next day, Paulson greenlighted a massive, $85 billion bailout of AIG, which promptly turned around and repaid $13 billion it owed to Goldman. Thanks to the rescue effort, the bank ended up getting paid in full for its bad bets: By contrast, retired auto workers awaiting the Chrysler bailout will be lucky to receive 50 cents for every dollar they are owed.
BUBBLE #6 Global Warming
Fast-forward to today. It’s early June in Washington, D.C. Barack Obama, a popular young politician whose leading private campaign donor was an investment bank called Goldman Sachs — its employees paid some $981,000 to his campaign — sits in the White House. Having seamlessly navigated the political minefield of the bailout era, Goldman is once again back to its old business, scouting out loopholes in a new government-created market with the aid of a new set of alumni occupying key government jobs.
Gone are Hank Paulson and Neel Kashkari; in their place are Treasury chief of staff Mark Patterson and CFTC chief Gary Gensler, both former Goldmanites. (Gensler was the firm’s cohead of finance.) And instead of credit derivatives or oil futures or mortgage-backed CDOs, the new game in town, the next bubble, is in carbon credits — a booming trillion dollar market that barely even exists yet, but will if the Democratic Party that it gave $4,452,585 to in the last election manages to push into existence a groundbreaking new commodities bubble, disguised as an “environmental plan,” called cap-and-trade.
Michael Porfirio Mason
AKA The Peoples Champ
AKA GFK, Jr.
AKA The Sly, Slick and the Wicked
AKA The Voodoo Child
The Guide to Getting More out of Life
http://www.thegmanifesto.com
Michael Porfirio Mason
AKA The Peoples Champ
AKA GFK, Jr.
AKA The Sly, Slick and the Wicked
AKA The Voodoo Child
The Guide to Getting More out of Life
http://www.thegmanifesto.com
Brazilian authorities detained the wife of former boxing champion Arturo Gatti and formally accused her on Sunday of killing him at an upmarket seaside tourist resort in Brazil.
Police said 23-year-old Amanda Rodrigues was taken into custody after contradictions in her interrogation and presented a formal accusation against her. Prosecutors will later decide whether she will be charged.
Rodrigues, who denies any involvement in her husband’s death, was the first to find the slain boxer’s body early on Saturday inside the vacation apartment they were renting at the Porto de Galinhas resort in northeastern Brazil, police said.
The former junior welterweight champion was apparently strangled with the strap of a purse, which was found at the scene with blood stains, said Milena Saraiva, a spokeswoman for the Pernambuco state civil police.
She told The Associated Press that the Canadian also sustained a head injury.
Police said Rodrigues, a Brazilian, could not explain how she spent nearly 10 hours inside the residence without noticing that Gatti was already dead.
Rodrigues told police she had a fight with Gatti after dinner on Friday night and he pushed her to the ground during the altercation, causing her to sustain minor injuries to her elbow and chin.
She told authorities Gatti was drunk and that a third party likely committed the crime after he went to the apartment by himself.
Witnesses had reported to police that the couple fought and that Gatti was drunk.
Authorities were told the couple was extremely jealous of each other and that Gatti constantly complained about her clothing when she travelled to Brazil, Saraiva said.
Acelino “Popo” Freitas, a four-time world champion Brazilian boxer, told Globo TV’s website on Saturday that he was a close friend of Gatti and his wife and that he “knew they were having some sort of problem and were about to separate”.
They had planned to spend a month in Brazil on holiday.
The couple’s one-year-old son, who was unhurt, was handed to Rodrigues’ sister, Saraiva said.
The 37-year-old Gatti, whose epic trilogy with Micky Ward made him one of the most exciting fighters of his generation, retired in 2007 with a career record of 40-9 and 31 knockouts.
Known for his straightforward punching and granite-like chin, Gatti captured the super featherweight title in 1995, when he defeated Tracy Harris Patterson in Atlantic City. He won the junior welterweight title in 2004.
Michael Porfirio Mason
AKA The Peoples Champ
AKA GFK, Jr.
AKA The Sly, Slick and the Wicked
AKA The Voodoo Child
The Guide to Getting More out of Life
http://www.thegmanifesto.com
Stephen “The Rifleman” Flemmi testified today that as he spent more time with his beautiful girlfriend, fellow gangster James “Whitey” Bulger grew jealous.
“Bulger kind of resented the fact that I didn’t spend enough time with him,” Flemmi, 75, said during the civil bench trial in US District Court. Flemmi recalled that he began skipping some of Bulger’s secret meetings with the FBI so he could be with Debra Davis.
“He would contact me and I wouldn’t respond,” Flemmi said, noting that he shut off his pager when he got home because “I didn’t want to be bothered … [Bulger] was very upset about it.”
That anger turned deadly when Bulger learned that Flemmi had told Davis about their relationship with the FBI.
“He wanted to kill her,” Flemmi said. “He wanted me to bring her down and set her up so he could kill her.”
Michael Porfirio Mason
AKA The Peoples Champ
AKA GFK, Jr.
AKA The Sly, Slick and the Wicked
AKA The Voodoo Child
The Guide to Getting More out of Life
http://www.thegmanifesto.com
