Attention DeepCapture fans in the New York and New Jersey area: our own Patrick Byrne will be speaking at Rutgers University on Monday, February 22, 2016. The subject will be the philosophical underpinnings of the cryptocurrency movement and how it relates to liberalism and social justice.
Barry Minkow’s sudden return from ex-felon to current-felon has come as a surprise to some, but not to the Deep Capture team; for we have, over nearly four years, sought to raise awareness of Minkow’s place in a much broader, criminal stock manipulation ecosystem.
When attempting to understand much of what happens at the Securities and Exchange Commission, I believe moral hazard is nearly as important a factor as the much more frequently-discussed matter of regulatory capture.
Goldman may be flush with cash, but with pressure mounting on politicians to reject any of it in the form of campaign contributions, suddenly that cash doesn’t spend nearly as well as it used to.
But dig a little deeper and you’ll find the Stanford case is the bigger outrage by far, not so much for the scam itself, but for the shocking behavior of the regulators tasked with preventing it. Where Madoff was enabled by SEC bureaucratic incompetence, Stanford was empowered by overt SEC indifference.
Regular readers of this blog come from remarkably diverse backgrounds, but seem united by at least one shared experience: the act of having examined some aspect of our capital markets only to conclude that much of what the world has accepted as fundamental simply does not make sense.
This clip, which recently aired on CNBC, is probably the best insight yet into the current mindset of SEC Chairman Mary Schapiro, with respect to enforcing laws against illegal market manipulation.