Learning about social trends has been both interesting and instructive. In a time of increasingly negative social moods, there will be both falling markets and finger pointing at a scapegoat; putting blame on the one who caused this meltdown (deserved or not). As part of this trend, there will be increasing efforts to target the alleged perpetrators of the melt down with criminal sanctions. The folks at The Socionomist have best described this social pattern (see, www.Socionomics.net ) . Specifically, they have predicted that the “leaders” of buisness in an up market, those featured on the front pages of Fortune and Time, are the same people who will be prosecuted in the downturn. They also predicted that whoever won the last Presidential election would be lucky to avoid impeachment and removal, simply because they are the leader at the time of the start of the economic depression. In that context, one will see more and more prosecution of white collar crime. So, this story from the Dallas paper is timely for a down market mood.
“North Texas fraud prosecutors laid out the results of a five-month push against Ponzi schemes and other forms of money traps Monday, saying that more civil and criminal cases are coming as get-rich-quick schemes are proliferating.
The Obama administration’s focus yielded arrests related to $8.3 billion in consumer losses, with $202 million from 2,651 victims identified in criminal cases filed in North Texas.
The event came as regulators are still stinging from criticism about their failure to stop multibillion-dollar swindles linked to Houston financier Allen Stanford and New York investment advisor Bernard Madoff. ”
Here is a link to the entire article: http://www.dallasnews.com/sharedcontent/dws/bus/stories/DN-fraud_07bus.ART.State.Edition1.353d77.html