NEVER UNDERESTIMATE . . . THE GREED . . . OF THE

WEALTHY CLASS!

THE MARTHA STEWART SYNDROME

There's an element of greed that seems to takes over as some people gain more and more wealth, until it becomes so all consuming that nothing becomes more important than continued acquisition of numerous large homes, art treasures, fine cars and money.  Many men and women,  as they become wealthier, seem to lose all sense of honor, decency and shame, end up in prison, some for the rest of heir lives, or at least the years they should enjoy the most, in peace and comfort, loved and respected by their families.

Why do become more and more acquisitive, sacrificing their humanity, jettisoning friendships and close relationships of many years that they once held dear, seeking only the wealthy as friends?   Eventually their rapaciousness often causes them to lose their sense of balance, of right and wrong, and to them wealth makes right, not right makes right.   Rudderless, they veer off course and into the shoals, then upon the rocks of disaster.

I call it The Martha Stewart Syndrome because she obviously was the best known personality of the long list of those who ran afoul of the law, not because she was evil or a major conspirator, but she did get caught up in the problem over money.

MARTHA STEWART

Martha Stewart might well be used as an example; she got into difficulty that began, reportedly, as an act which might have saved her somewhere around $50,000, as she was first accused of using insider information to avoid a small stock loss in the IMClone stock she held. The accusation was never proven, but the loss would have been about 1/10 of 1% of her net worth, which at the time was close to a billion dollars, and the investigation alone brought on multiple problems that never should have happened to her.

She was the founder and CEO of Martha Stewart Living Omni-media, and one of the world's wealthiest and  best known women. 

As the case dragged on it caused a drop in the value of the stock in her company, damage to her name and reputation, and the small loss she had faced grew to hundreds of millions, in fact, about 50% of her total worth vanished as the value of her companies' stock fell dramatically. The retirement funds of many of her loyal followers were jeopardized and the many of the faithful felt betrayed. But, her stock-holders suffered too, in the same percentage of losses as she, because of that perceived mistake in judgment.  There were untold hardships for many who simply could not afford such losses. Her moral compass no longer seemed pointed to "true North." The mistake she she was accused of making was seemingly small, but the consequences were large for herself and others.  Her legal costs alone far eclipsed the minor losses she would have suffered. 

She was not punished for the allegations of profiting from Insider Trading based upon conversations with Samuel Waksal; she was punished for lying to the investigators, to a Federal officer.  She has paid a price; she is back doing what she does best, and that should be the end of it.  It's over.

There were some reports of her demands upon and nastiness to subordinates that were reported as the investigation and coverage of her financial and legal problems dragged on. I'm sure she may still be a perfectionist, but the experience must have changed her.  When the wealthy or powerful fall, the jackals move in to rip as much flesh off the carcass as possible.  Personally, I hate to see such things happen, as I am one who would rather choose to cheer on the successful, yet the fallen are such contemptible rapacious characters that they well deserve mention.  It helps us to understand that for some no scheme nor conspiracy is too devious, too vile, nor involves too much money.   

SAMUEL D. WAKSAL, CEO ImClone Systems, Inc. - 2002

A close friend of Martha Stewart and the founder of ImClone Systems, he used insider information that one of the company's products was not going to be approved by government agency, which would bring about a price drop in the stock, so he sold out before the general public could learn about it, according to the Feds.

Leona Helmsley, of the Helmsley Hotels, was another woman whose exploits became fodder for the scandal sheets, her greed so overcame every sense of decency, that her inhumanity to employees was legendary.  Her mistreatment of others made her sound more like the Evil Witch in the Hansel and Gretel story than a human being.   They wrote that she seemed to take pleasure in firing workers whose livlihood and well-being depended upon their jobs, putting them and their families at risk.

BERNARD EBBERS, CEO WORLDCOM

Greed? Look at Bernard Ebbers, former CEO of WorldCom, who cost shareholders billions, depleting the retirement funds of millions of average people, one of them my sister, a widow with a serious heart problem.  Ebbers, a Sunday School teacher turned out to be a master of deceit, even lying to the children in his church.  On March 15, 2005 he was convicted of an $11 billion dollar accounting fraud. Prior to that, in the year 2000, he was on Forbes list of 400 richest Americans, at $780 million; today he is in prison, and perhaps he'll die there.

The loss of their retirement funds most likely caused heart attacks and early deaths to many investors, extreme hardships to others.  They will suffer for years too.  Prison may punish the guilty, but those outside the walls, innocent investors, can suffer equally.

DENNIS KOZLOWSKI, CEO TYCO

Dennis Kozlowski of Tyco robbed the company that was paying him millions a year out of many millions more, without it bothering his conscience at all.  While he was worth hundreds of millions, he still schemed to cheat the State of New York out of sales tax on the expensive art he purchased, a ten million dollar panting by Renoir, avoiding a million dollars in sales tax.  At the same time the art dealers whom he persuaded to cooperate with him faced criminal charges in New York too. In the end, it turned out, he was nothing more than a cheap chiseler, and another one who reportedly was extremely rude to those who worked for him.  Why did this wealthy CEO, a man who threw a $2 million dollar birthday party for his wife, get into trouble when he did not need to do so?

KENNETH LAY & RICHARD SKILLING

Then there's Kenneth Lay, the CEO of Enron, seemingly on top of the world until it all dropped out from under him.  They had devised, the Government said, a scheme to create artificial shortages in the electrical power field so that they could make millions more, added to those millions they had already accumulated.  Also at Enron was Jeffrey Skilling, now facing a lifetime behind bars...and the list goes on and on and on. Greed?  There is never enough money to satisfy the greed of some, not enough art, not enough homes, not enough power that goes with the wealth. 

CONRAD BLACK (4/18/07)

Media mogul charged with a $60 million dollar fraud, currently on trial.  His former partner has pled guilty and will testify for the Government about the scheme.  Why do the rich get into trouble when they don't need to do so? 

This trial, still going on in court today, in which his former partner testifies against him, shows that those in the wealthy class , big business moguls, multi-millionaires, who become involved in fraudulent schemes treat millions and even hundreds of millions of dollars as casually as the small-time crook hits and ATM for a couple of hundred dollars. 

THE CREDIT CARD CARTEL IS IN THE SAME LEAGUE.

When corporate executives conspire, literally, to pit one group against another by the introduction of bribery into almost every business transaction, an act that causes the first group (cardholders) to modify their behavior and to change it in such a way  that it does harm or deprives the second group (acceptors) of their money, or that defrauds them in any other manner, while at the same time preventing those whom such actions is directed against from protecting themselves,  that such actions become a series of criminal acts.  As such, then every U.S. Attorney's office in every state should be investigating these executives and their corporations as conspirators in a massive national and international fraud.

Each State's Attorney General should be conducting an investigation as well, that the protection of their retail businesses and service providers from such harmful business practices is of paramount importance, and it is the duty of the Federal and State governments to seek to end them and penalize those who are involved, such as the major banks and credit card issuers and franchisors.  

Among the participants are many of the best known corporate names in the country, such as the names of every major bank associated with the Credit Card industry, Citibank, MBNA, Bank of America, Wells Fargo, Bank One, and their greedy partners in rapaciousness, Visa, MasterCard and Discover, American Express, Diners Club, among others.  It is not the ordinary development of a business that leads to schemes and fraudulent actions; it is purely greed that drives those who find ever more devious ways to enrich themselves while stripping others of their rightful profits.

I've grown to strongly dislike these international banks, these monstrous financial institutions, so much so that my rhetoric might sound more like a Marxist rather than a dyed-in-the-wool believer in the capitalist system.  I believe in democracy; I believe in free enterprise; I believe in my country and I take to heart every word in the Declaration of Independence, our Constitution and the various Amendments to it.  I dislike Communism, Marxism and Socialism. 

Statement:
We believe that Air Miles, and the use of bribery as advocated and used by certain members of the Credit/Charge Card Cartel to steal Retailers’ profits, should be terminated immediately. (July 30, 2002)

Retailers must be Reimbursed for Losses (Bank Charges) over the past ten years due to Air Miles: Bank service fees connected with credit cards have increased thousands of dollars annually for many Retailers. Large Retailers are paying out tens to hundreds of thousands of dollars more annually, and the culprits are either Air Miles or Refunds by Charge and Credit Card companies. Merchants should be reimbursed for all losses suffered through the fraud known as Air Miles, based upon their yearly percentage of increases in sales on plastic between 1992 and 2002, plus interest and punitive damages.
It's time for US to recover OUR losses from this crooked scheme! (Class Action Suit).

Consumers Air Miles should be Compensated (Bought Out) at 3 Cents per Mile:

The tremendous accumulation of Air Miles  (reportedly 7 1/2 trillion miles in 2002) by Consumers, indicates that likely most of it is not redeemable by U.S. Airlines. Consumers should be compensated at the rate of three (3) cents a mile for their credits. (i.e. 250,000 miles at 3 cents per mile = $7,500 cash payout.) This is roughly the amount of money “stolen” from the business owners, and offered to their clients as Air Miles; it rightfully (or wrongfully) should be paid to the Consumers. These payments can be applied to balances on some cards, which would help the Cardholders considerably.

Local Banks Should Support Local Merchants in Defeating Air Miles:
Local bank officers in agreement with this position should publicly acknowledge the injustice of the use of bribery through the use of Air Miles, rebates, refunds, and other perks, as a responsible step and in support of their local business owners. While the Visa/MasterCard/American Ex-Cess contract forbids us to discount in order to discourage use of a charge or credit card, they, in effect, are discounting our merchandise. Not only that, but they are using our money to do it.

"Air Miles" rewards the users of Credit Cards with a "discount", which penalizes the customer who pays with cash or check.
This is adverse to the interests of the Retailers and forces them to accept conditions which are contrary to their best interests and welfare.

The the customer using plastic to make his payment receives "Air Miles" as a reward, and it is in effect a discount. Therefore he pays a lower price than the one who pays with Cash or Check.

If a customer pays a thousand dollar invoice with cash or check, the Retailer receives his price in full. If that customer used an American Express card, he only receives $960. If that customer uses Visa, MasterCard or Discover, then he receives $980. In one instance the Retailer loses $40 and in the other $20.  He should not be forced into a position where the money is "taken" from him.

It is like forcing Union membership upon those who, on principle, do not wish to join.  However, the Union works to benefit the workers.  The Credit Card Industry does this to benefit and enrich themselves at the expense of business owners.

Therefore, because of the chicanery of the Visa & MasterCard banking interests, as well as American Express, Retailers are locked into an Agreement that forces them to reward customers who use costly plastic, thereby forcing them to treat their cash customers disadvantageously.  The ones who benefit the most are those who the least profitable to the banking industry, who take additional discounts from the sellers because of the chicanery of the Credit Card Cartel.
It makes the cash customer "a fool" for being honest and paying his bill in full.

It rewards the "chiseler" who uses his plastic cards on every purchase in order to gain free "Air Miles" or other rewards.  It has turned us into a nation of chiselers, plastic cheap chiselers, doing the dirty work for the Banking and Credit Card industry.