The Corzine Effect

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There is something in the air right now…

Is it the winter chill?

Or is it the Corzine Effect?

What’s that?

It’s where one misstep leads to another and then another, exposing how things really are to the little people like you and I…

Because, sometimes, there are just too many events happening too close together that defy any other explanation other than the obvious…

And that explanation is not good for our country.

Or, maybe it is good…

In the way that getting the truth out is good for the soul.

Jon Corzine, former head of MF Global, is making news these days for all the wrong reasons…

MF Global, which lost over $1 billion of investors’ money and apparently co-mingled client money with MF Global accounts…

And the Corzine affect is everywhere.

What do I mean?

I’m talking about the blatant and undeniable fact that too many in our government are on the take in one form or another…

And take they certainly do.

Think about this for a moment…

It recently became public knowledge that members of Congress have been playing the market on inside information…

Making money on inside information for their own account, while many investors in the country have lost their collective shirts.

How long has this gone on?

Who knows; but I would bet that it is not a new phenomenon…

So, let’s do what no government agency seems able to do and connect some dots.

Imagine, you’re making laws and writing policies that will benefit—or harm--a certain industry.

Or you’re passing legislation that may even just hurt or harm a particular company.

As a member of Congress, you know exactly what’s in a given bill, who will be affected by it, and when it will become law.

And what do you do?

Why you call your broker of course, and buy—or short—that particular company.  Heck, you do so with options, to leverage your money and multiply your profits…

And as other stockholders take the hit, you rake in the cash.

Mafia House

How’s that for a racket?

And this is not illegal?

Apparently not....yet.

Now really, which members of Congress are going to vote for that law?

Well, maybe some will…

Because the damage to our economy becomes too great when the average American finds out—or comes to believe--that the only rule for making his life better is to cheat…

And the best way to cheat is to get elected.

That is, the only way up the ladder is to obtain position and political power…

Just like the mafia; ours, the Russians, or anybody else’s mafia--they’re all the same.

Is that what it’s all about?

Bear in mind that on Wall Street, people theoretically go to jail for such system poisoning offenses…

Or at least get kicked out of Goldman Sachs…

Become a Senator from New Jersey, lose their New Jersey Senate seat, become governor of New Jersey for a spell…and run the state into the ground…

And then, they lose their bid for re- election and instead, become head of MF Global for several months, before running it into the ground…stealing investors’ money along the way before losing it all…

Meanwhile, you’re paying an ex-President $50K a month…

And the current Vice President publicly lauds your economic knowledge.

Nasty old habits are apparently hard to break, no?

But of course, there is something to be said for consistency…

But I can’t say it here, because there are decency laws against such words.

But, really, it’s not enough that our economy is crashing…

Congressional graft is mainstream and old hat…

But to this degree?

Is this naïve?

Probably.

The truth is, most people stop at red lights, pay their parking tickets, and do not engage in insider trading.

Apparently, that is not the case in Congress.

And such behavior not only puts our economy at risk, but also, the legitimacy of Congress itself and all of our other governing institutions are at risk from this awful discovery…

Why would I say this?

Is it too much of a stretch to imagine that lawmakers might just—well, what’s the word I’m looking for—provide other parties such information in advance for some kind of pay off?

I have no proof that such transactions have ever taken place…

But since it is not illegal for members of Congress to profit from their special positions, well, why wouldn’t they profit from it as much as possible?

Too Much Is Never Enough

As I said, sometimes, there are just too many coincidences to ignore…

And there is a reason why so many who enter Congress with only modest means leave it wealthy or very wealthy.

Would you like to know how many members of Congress are profiting from their public service positions?

How many Presidents, ex- or otherwise?

How many millions of dollars trade hands by privileged information leaking out?

How many trade deals, legal loopholes, and legislative favors are done every day?

Maybe it would be better for the economy and the institutions if, as the founders had wanted, to allow only the wealthy to govern?

The idea being that if one were wealthy enough, then he or she might know more about the world and be less corruptible…

Would that change the status quo?

Probably not.

And why not?

Because…too much is never enough.  Ask Jon Corzine.

And those are…The Gorrie Details.

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