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William K Black , J.D., Ph.D. is Associate Professor of Law and Economics at the University of Missouri-Kansas City. Bill Black has testified before the Senate Agricultural Committee on the regulation of financial derivatives and House Governance Committee on the regulation of executive compensation. He was interviewed by Bill Moyers on PBS, which went viral. He gave an invited lecture at UCLA’s Hammer Institute which, when the video was posted on the web, drew so many “hits” that it crashed the UCLA server. He appeared extensively in Michael Moore’s most recent documentary: “Capitalism: A Love Story.” He was featured in the Obama campaign release discussing Senator McCain’s role in the “Keating Five.” (Bill took the notes of that meeting that led to the Senate Ethics investigation of the Keating Five. His testimony was highly critical of all five Senators’ actions.) He is a frequent guest on local, national, and international television and radio and is quoted as an expert by the national and international print media nearly every week. He was the subject of featured interviews in Newsweek, Barron’s, and Village Voice. He is the author of The Best Way to Rob a Bank is to Own One, and c–founder of Bank Whistleblowers United.
Andrew Ross Sorkin's Attempt to Make Tim Geithner a Hero
I am watching the film Too Big to Fail based on Andrew Ross Sorkin's book of the same name. It led me to check out the price of the used book, which has fallen to $1.02, which is low enough that I am willing to buy a copy of the book, particularly since not a penny will go to Andrew Ross Sorkin.
Friday, January 27, 2017(1 comments)
Not 4 Sale: A Principle and a Slogan for Real Democrats
This article explains three critical reasons why the Democratic Party's leaders are far more insane than all but a few Democrats understand. It focuses on the leaders of the Democratic National Committee (DNC) and the New Democrats.
Thursday, January 26, 2017(4 comments)
The New Democrats' Addiction to Austerity Will Not Die
the Democrats should never mimic the Republicans' dishonesty, hysteria, and willingness to inflict austerity on the people of America and the world.
Unfortunately, the New Democrats embraced the economic malpractice of austerity with the passion of a convert.
Wednesday, October 26, 2016(4 comments)
Debt Derangement Syndrome: Saving Our Grandkids from Wall Street
Pete Peterson is back, and his message and rhetoric are always the same. The federal budget deficit is a disaster and -- any day now -- will produce massive inflation. Peterson has written his 20,000th version of this fantasy in the NYT with Paul Volcker. The first rhetorical game that Paulson plays is to assert that it is bad for a sovereign nation to run budgetary deficits because they are not "sound and sustainable."
Friday, October 21, 2016(22 comments)
Plutocrats Brag: We Win Because You Fail to Vote
The New Democrats and their Republican counterparts' economic policies have created a rigged system of crony capitalism. Crony capitalism produces devastating epidemics of elite fraud that have shrunk the overall economic "pie" and distributed the "pie" overwhelmingly in favor of corrupt corporate elites like Donald Trump and their political cronies like the Clintons.
Tuesday, August 2, 2016(6 comments)
Policing as a Tool of Systemic Racism
In order to understand the discussion of blood libels I need to provide the reader with a very brief overview of the key policing practices most relevant to race. This thumbnail history is necessary to understand a series of paradoxes that I will discuss in this series of articles. These paradoxes often are critical to understanding the intersection of police, policing, crime, gender, age, and race.
Tuesday, June 28, 2016(4 comments)
BREXIT Part 2: Roger Cohen's column on Brexit
Roger Cohen published a column decrying BREXIT.
Yes, "Project Fear" failed in its goal of intimidating voters. It isn't simply the "politicians" that failed, it was the "experts" -- the elites that rig the system in finance and the ideologues who create the self-inflicted wounds of EU austerity -- who designed the failed policies and grew wealthier and more powerful because of those policies.
Wednesday, April 20, 2016
Too Big to Fail From the Eyes of a Specialist
Dr. William Black concludes: "One of the reasons we, the Bank Whistleblowers United, proposed getting rid of the systemically dangerous institutions through the use of banking regulators' powers...is that it allows vastly quicker remedial action than the cumbersome FSOC procedure that took over two years to designate MetLife as posing a systemic risk."
Black is an economic advisor to Bernie Sanders.
How Many Lies Can the WSJ Pack into a Chart on Liar's Loans?
How Many Lies Can the WSJ Pack into a Chart on Liar's Loans?
This is the second article in my series prompted by the Wall Street Journal report that "big money managers" want to bring back "liar's loans." Given that the best study of liar's loans during the crisis found a fraud incidence of 90% -- this is a startling proof of how openly addicted to fraud the "big money managers" remain.
Saturday, January 30, 2016(3 comments)
Announcing the Bank Whistleblowers' Group's Initial Proposals
Announcing the Bank Whistleblowers' Group. so we ask each presidential candidate -- which portions of the Whistleblowers' 60-Day plan will you pledge to implement? We hope the candidates will commit to breaking Wall Street's power over our economy and democracy.
The Libertarian Plea to Bring Back Jim Crow: An Oxymoron
Yes, there are few things better designed to increase "liberty" than to encourage merchants to refuse service to whatever groups they hate.
According to conservatives, every leading candidate for the Republican Party's nomination for the presidency rushed to embrace the right of merchants to discriminate in the Indiana Act as originally passed.
The Greek Depression, the Troika, and the New York Times (videos)
As I have explained in prior articles, there is an excellent chance that the Troika's infliction of austerity on the eurozone's periphery could, as with the austerity inflicted under the Washington Consensus, continue to produce such long-term rolling recessions. The media still supports such measures, but not the people.
New York City: Aggressive "Broken Windows" Policing but Carte Blanche for Banksters
New York City exemplifies two perverse criminal justice policies that drive many criminologists to distraction. It is the home of the most destructive epidemics of elite financial frauds in history.
The "strategy" of ignoring or even praising the banksters' enormous frauds while aggressively arresting the poor for the most minor of property offenses is obviously indefensible on every conceivable basis.
The New York Times Finally Allows Competent EU Commentators
In the last two days, however, the NYT has given space to an outsider and a newly hired journalist not from the EU beat to write about EU austerity. Each column contain more blunt truths than six years of the NYT's regular coverage of EU austerity -- combined.
EU Austerity as Frat House Hazing
Yes, the EU is now officially a fraternity, and austerity is its hazing ritual. Yes, they know that austerity is stupid, juvenile, and dangerous, but, hey, they had to suffer it so everybody else should as well.
Thursday, September 18, 2014(1 comments)
The New York Times' Coverage of EU Austerity Remains Pathetic
I have explained in depth why the New York Times' coverage of the EU troika's infliction of austerity on the eurozone is dishonest and routinely indifferent to the suffering of the peoples of much of the periphery who have been forced into a second Great Depression. The latest travesty was in an article entitled "French Premier's Push Toward Center Opens Rift on the Left."
Wednesday, August 20, 2014(2 comments)
The WSJ's Editorial Posing as "News" about Ecuador
the Wall Street Journal has poured out its pain that the people of Ecuador might reelect President Rafael Correa.
The WSJ lets slip the "opposition's" real concerns -- the people of Ecuador strongly support Correa's policies and oppose the return of the oligarchs to power. The oligarchs are desperate to make it impossible for the people of Ecuador to reelect the leader they support.
It's Long Past Time for Krugman to Name and Shame NYT's Eurozone Reportage
the New York Times authoring another of its endless articles that assumes that austerity is essential to a eurozone recovery. My problems are with the NYT reporters ignoring Krugman's views -- views shared by the great bulk of economists -- and with their failure to question whether austerity is the proper response to a recession.
Tuesday, July 1, 2014(2 comments)
Implicitly Assuming that the CEO is Not a Crook Misses the Problem
Gretchen Morgenson has brought a revealing study to the attention of the public in her article entitled "The CEO is My Friend, So Back Off." Here's the bad news -- the situation is vastly worse than the authors of the study conclude and the policy advice that experts offered Morgenson in response to the findings would fail where they were most needed.
Company CEOs typically provide a thin veneer of faux ethical trappings...
Why the Worst Get on Top -- in Economics and as CEOs
Von Hayek implicitly assumes that corrupt CEOs will not control and abuse any political system. Under his own logic CEOs can use the seeming legitimacy, power, and wealth of "their" corporations to serve directly as these demagogues or fund and control proxy demagogues that will serve their interests.
Thursday, June 12, 2014(6 comments)
Yes, Theoclassical "Economists [are] Basically Immoral"
The failures of theoclassical economists and economics are total and myriad. Many of their theories are long-falsified dogmas. Their methodological preference is econometrics -- which gives the worst possible results in bubbles and when accounting control fraud epidemics occur.
Tuesday, June 10, 2014
The Criminology of the "Sure Thing" Portrayed as "Risk"
John Coates, a former derivatives trader at Goldman Sachs is now a researcher. He wrote a column in the New York Times entitled "The Biology of Risk" that I hope will be widely read.
Coates' description of the crisis as triggered by a biologically-induced excessive risk-aversion on the part of traders rests on a failure to understand why varieties of financial risk are vastly different.
Monday, June 9, 2014(1 comments)
GM's Cartoon Version of von Hayek's "Road to Serfdom" -- on the 70th Anniversary of D-Day
Thank God that GM warned us all, decades ago, so that we could take a hard right exit off the road to serfdom. Please repeat after me the GM mantra of freedom.
As a further act of unintentional self-parody, a libertarian blogger chose the 70th anniversary of D-Day to post GM's cartoon. The cartoon's premise is the supposed absurdity of the government being competent to plan anything.
Wednesday, June 4, 2014(3 comments)
The Troika Continues to Harm the Eurozone and the WSJ continues to Miss the Story
The ECB's failure tells us something enormously important about what is wrong with the eurozone's economy and the troika's bleeding of that economy through austerity. Indeed, its failure has been growing steadily.
(Ed. Note: In Economics, Demand is defined as the desire or need for goods and services AND the ability to pay for it. Actual Demand is only the first part and exists all the time).
Wednesday, May 28, 2014
Madness Posing as Hyper-Rationality: OMB's Assault on Effective Regulation
Rather than leading the emergency, top priority effort to adopt the regulations to end the criminogenic environment in finance, OMB remains a leader of the effort to prevent effective regulation.
In a rational world the Office of Management and Budget (OMB), under Presidents Bush and Obama, would have responded to the financial crisis by demanding an emergency effort as a top national priority.
Monday, May 19, 2014(1 comments)
We've Known for 75 Years Why GM Killing Customers Isn't Treated as "Real Crime"
The recent NY Times article does not report on the number of people who were injured and killed because GM designed a defective ignition system, knowingly hid the defect from its customers and the government, and once it knew that its defective design was injuring and killing its customers GM deliberately covered up the existence of the defect and the cause of the easily avoidable injuries and deaths.
Tuesday, May 13, 2014(1 comments)
Geithner's Other Ad Hominem Attacks Against Barofsky
In my first article on Timothy Geithner I exposed the revealing and disgusting nature of his bizarre ad hominem attack on Neil Barofsky, the Special Inspector General for the Troubled Assets Relief Program for the great sin of providing his law enforcement officers with side arms and protective vests. In this article I discuss very briefly his other two ad hominem attacks on Barofsky and his staff.
Wednesday, April 30, 2014(2 comments)
It's Good - no - Great to be the CEO Running a Huge Criminal Bank
You know what happened; no senior banker or bank was prosecuted. No banker was sued civilly by the government. No banker had to pay back his bonus that he "earned" through fraud.
Every day brings multiple new scandals. At least they used to be scandals. Now they're simply news items strained of ethical content by business journalists who see no evil, hear no evil, and speak not about evil.
Tuesday, April 29, 2014
The New Book on Regulation I Just Decided to Write: Blame it on Monaco
Theoclassical economists have mounted an unholy war to discredit and intimidate regulation and regulators -- and to replace them with anti-regulators -- for over a century. This is the third article in a series of columns devoted to financial regulation prompted by the comments of a Swiss academic at the XIIth Annual CIFA Forum in Monaco.
The 11th Lesson We Need to Learn from Charles Keating's Frauds: Bring back Glass-Steagall
One of the subtle aspects of the savings and loan debacle that is that we ran a real world test of the importance of the provisions of the 1933 Banking Act known as the Glass-Steagall Act. Unfortunately, Glass-Steagall was doomed by the combination of politicians eager for campaign contributions from big finance and theoclassical economists who inhabit a fantasy-based world of dogma that ignored the results. Series: Banking (17 Articles, 35762 views)
Sunday, April 6, 2014(2 comments)
The Kamikaze Economics and Politics of Forcing Austerity on the Ukraine
So, our strategy is to play into Putin’s hands by inflicting austerity and turning the Ukraine into “a Western hell.” Not to worry says our man in Kiev. Playing into Putin's hands by inflicting austerity on the Ukraine and producing "hell" is ludicrous.
The Ukraine faces severe problems beyond Russia and its energy dependence on Russia.
Wednesday, April 2, 2014(2 comments)
Dr. Draghi Prescribes a Dose of Deflation for Spain as his latest Quack Cure
This morning brought two April Fools' Day articles about France and Italy that are also about the gratuitous second Great Recession (in the core) & the second Great Depression (in Spain, Italy, and Greece) inflicted by the troika's infamous austerity dogmas. In conjunction with quotations from Draghi’s fellow troika-trolls in the articles about France and Italy, they reveal the troika’s fanatical devotion to failed dogma.
Sunday, March 16, 2014(2 comments)
The Most Dishonest Number in the World: LIBOR
The FDIC has sued 16 of the largest banks in the world plus the British Bankers Association (BBA) alleging that they engaged in fraud and collusion to manipulate the London Inter-bank Offered Rate (LIBOR). BBA called LIBOR "The most important number in the world."
LIBOR is actually many numbers that depend on the currency and term (maturity) of the loan. The collusion involved manipulating most of these rates.
Saturday, March 1, 2014(1 comments)
Key House Republicans Almost Get Accounting Control Fraud
To prepare myself for a guest lecture to a class at the University of Kansas I did some research about the House Financial Services Committee, now chaired by Jeb Hensarling (R. TX). I was pleased to learn that the Committee's home page emphasizes the key role that accounting control fraud played at Fannie and Freddie. A description of how such fraud occurs, follows.