Monday, June 29, 2009

Nice Guy Goes to Jail: Investors Broke

Bernie Madoff's $50 billion fraud conned well-known investors, nonprofits, and the little ol' lady next door.

Why did people give Bernie their life savings? Because Bernie was such a "nice guy" and he said he would give them what they wanted.

Americans probably put more critical thought and investigation into where they put their life savings than who they elect to city council.

23 comments:

  1. Our City Council did to their tax payers what Madoff did to his investors.... they fucked them.

    Our City Council pours all the tax payers money down the drain on useless staff salaries and pensions.

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  2. When can we put our City Council in jail?

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  3. Currently the pension plans for public employees is highway robbery to the tax payers. Check out

    http://www.nctimes.com/articles/2009/06/29/news/sandiego/zcd32a9b393a58e83882575e4006e75da.txt

    If staff wants their current 3% at 60, let them pay 80% of the PERS contribution, like I pay 95% of my 401k.

    Otherwise slash all pension contributions and fire all the deadwood.

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  4. Read this

    http://www.nctimes.com/pdf/opension062909.pdf

    Current City Managers secured their own and their Current Employees and Council's fat pensions over the last 5 years outside of public awareness.

    Now they acknowledge their actions were essentially robbery, irresponsible, and unsustainable to the public they serve.

    All current councils and City Managers should be prosecuted in a court of law and if found guilty, they should lose their pensions at minimum.

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  5. That 'nice guy' talk reminds me of locals who cite Danny as a nice guy - like that is sufficient to the task of governing. I'd have thought eight years of Bush would have clued us all in to the disaster of 'nice guy to have a beer with' method of selection.

    And, isn't it a bit handy that Madoff gets 150 years and the criminals at the helm of this national heist go untouched?

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  6. Why do they have to do untouched? Many years ago, Jim Bond asked for an independent audit of the City's books. It was supposed to happen. However, somewhere along the way they hired Phil Cotton and Jim told me that he felt we no longer needed an audit because he trusted Phil. My suggestions, take them or leave them.
    1. Term limits and an elected mayor
    2. An independent audit of what is fiscally going on at the City.
    3. Separate the San Dieguito Water District from the Encinitas City Council.
    4. Get involved.

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  7. I like your suggestions Dr. Lorri-

    Lets see if the public is still asleep or is finally waking up.

    Its embarrasing how clueless the commmon encinitas resident is about finance or their own City. I think its because they assume responsible people are in charge.

    The same thing that happened to the Madoff crowd.

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  8. Bond ask for an indy audit? Prove it.

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  9. anon 740,

    Send Bond an email and ask him. If he denies it in writing, then I'll prove it. Ask him first. It is more fun that way.

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  10. James Bond once asked for an audit during a public council meeting. Christie Guerin just about strangled him. She was almost spitting fire. An independent forensic audit is the last thing our city wants.

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  11. Correction.

    that's the last thing our City Manager and Finance Director want.

    Its the first thing the tax payers of Encinitas want.

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  12. Would you trust an audit by a professional audit firm? Would it detect fraud or just that the city follows their financial procedures?

    Remember, Madoff's financials were audited. According to Bloomberg, "The New City, New York, auditing firm Friehling & Horowitz signed off on the annual financial statement of Madoff’s Manhattan-based investment advisory business through Oct. 31, 2006." Audits have limited scope and a limited ability to detect fraud. They are better at detecting whether the internal controls (checks and balances) are being followed.

    A better approach would be to require more transparency into the city's financial books, payments, tax sources and revenues. The more visibility, the more easily the public can investigate the City's true financial status. Rather than limiting the access to a single audit company, the books should be open to anyone ...Republicans, Democrats, Independents, Greens, etc.

    Why not, where our tax dollars go should be a matter of public record.

    As deepthroat advised Bob Woodword in 'All the President's Men', "Follow the Money." If we want to know the true priorities and intentions of the city, "Follow the Money."

    Teresa Barth recently asked for increased transparency. Too bad she did not get any support. She lost the vote 4-1.

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  13. Great point Bruce.

    I will be voting against all 4 that voted against transparency. They are all in the union pocket and need to go.

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  14. Part of the problem is that the San Dieguito Water District and the City of Encinitas have a very cozy relationship. Who exactly knows where the money goes? That question has never been satisfactorily answered, IMHO. I have asked many times, and been told many different things. There are firms that do only independent audits of cities. Many cities use this firm, and it is considered to be qualified to handle cities of any size. I would suggest employing them, I do have an e-mail that Jim Bond sent me regarding the idea of an independent audit, so I do know he changed his mind after Phil Cotton was hired as City Manager. Why was he hired and no one else was even looked at? He had been the public works director. That certainly does not qualify him for City Manager. Too many cozy relationships from my point of view. Most of you know who I am speaking of, and if you don't, pay more attention.

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  15. Dr. Lorri for Council 2010!

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  16. Teresa Barth is the only one keeping for one more term. Adopt term limits now!

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  17. I am all for term limits. How do we do it?

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  18. Get Cardiff town council to start a Citizens initiative.

    They are probably the only ones with enough initiative to do it.

    Once they start it, the Leucadian Town Council and Olivenhain Town Council will join in and get the required signatures.

    Come on Cardiff, step to the plate one more time....

    This will be justice for the politicals that screwed you with a regional sports park in a former sleepy neighborhood of Cardiff.

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  19. Get on it town councils!

    Prove your worth.

    Start something that will do big things for our incorporated City of 5 unique towns.

    Do this our you all are worthless!

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  20. Why always leave it to Cardiff? I thought your favorite candidate last year was Rachelle Collier. Why doesn't she step up to the plate. Barbara Cobb has been president of the Cardiff Town Council so long it is almost dead.She was the one who headed up the Cardiff Kook. It is the last Council that will take it on. I think we should push Dr. Lori to do it.

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  21. Leucadia's too lazy.... they don't like to do anything but complain.

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  22. I am beginning to think you're right about Leucadia. many moan and groan but I don't see any of them in decision making positions.

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  23. 5:53
    Be nice, or I'll paint you in an unflattering manner at the next LeucadiART Walk.

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