Rush’s Morning Update: Cooked Books
August 24, 2010
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History was made recently when the Securities and Exchange Commission brought its first-ever action against a state; in this case, the state of New Jersey,in what amounts to fraud. In short, the state told investors it was properly funding pensions for public workers when it wasn’t.
Between 2001 and 2007, New Jersey claimed it was setting aside money in a “benefit enhancement fund.” The state said the fund was part of a “five-year-plan” that would pay for new benefits granted to teachers and state employees. But turns out, there was no such fund;it never existed. It was all a bunch of accounting gimmicks –not a dime of that money was real.
Now, this charade was played out over three different administrations, including the two Democrat tax-raisers, McGreevey and Jon Corzine,who, given his years on Wall Street, should’ve figured this out. The SEC says investors purchased more than $26 billion worth of New Jersey bonds without ever realizing how much fiscal trouble the state was in.
And this isthe kicker:Nobody is going to jail –not the government workers who committed the fraud, or the Wall Street underwriters of the bonds. No penalties at all have been handed out;just a cease-and-desist order, stopping the scheme.
Apparently, financial fraud is illegal for individuals like Madoff,but when Democrat administrations make-off– and get caught cooking the books– they don’t even rate a slap on the wrist!
I’ll tell you: November cannot get heresoon enough!
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