Top Bank Fraud Expert: ALL of the Big Banks’ Profits Come from FRAUD

The country’s top white collar crime expert, William Black – who put over 1,000 top S&L executives in jail for fraud, and is a  professor of law and economics at the University of Missouri – confirmed recently what the alternative media has been saying for years:  the business plan of Wall Street is fraud. That’s their key profit center. 

Black also says that a British parliamentary investigation Tories found that all of the retail profits of the largest banks in the UK came from fraud. 

Well, experts say that we have to prosecute fraud or else the economy won’t EVER really recover and stabilize. 

But the government is doing the exact opposite. Indeed, the Justice Department has announced it will go easy on big banks, and always settles prosecutions for pennies on the dollar (a form of stealth bailout. It is also arguably one of the main causes of the double dip in housing.) 

Indeed, the government doesn’t even force the banks to admit any criminal guilt as part of their settlement.

Hell To Pay

The final condition for a market crash is falling into place

The global experiment with our current flawed economic and monetary models are drawing to a close. The fetish worship of central banks, bankers, and banking is over. 

Belief in central bank omnipotence is being chipped away at daily, as it's becoming increasingly clear that the easing policies of the past seven years have only served to kick a can down the road -- a can that can longer be kicked any further. 

Once the illusion of central bank control is fully lost, the financial markets will implode in a deflationary wave that has been held at bay for far too long. Asset prices will collapse, companies will fail, and millions of jobs will be lost. People will re-discover that partying too hard for too long earns a massive hangover. 

In short: There will be hell to pay. 

All this matters because once faith in central banks is lost, their power to delay the deflationary day of reckoning goes with it. The stupendous amount of debt they have helped heap onto the financial system since 2008 will start going into default and the only question that will matter is: Who is going to eat the losses? 

The daisy chain of bubbles in stocks, real estate and the mother of them all -- the bond market -- will pop, adding additional losses to the growing bloodbath. 

All this will weigh on the already-sluggish growth in the economy, sending us into deep capital-R Recession, or worse.

DYI