One of the on-going arguments across the blogosphere and even the entire world is whether the economic problems of the last ten years are more related to incompetence or basic corruption. I must say, just the last week has offered plenty of evidence for both views. For example, we had this article from Bloomberg yesterday (Tuesday, November 29) about how then Treasury Secretary Hank Paulson met with his hedge fund buddies and gave them the first class insider information on his plans to place Fannie Mae and Freddie Mac into “conservatorship.”

When former Goldman Sachs exec Henry Paulson was Treasury Secretary he apparently gave his hedge fund buddies extremely helpful and lucrative secret information about his plans to seize Freddie Mae and Fannie Mac while still assuring the public everything was fine. It’s another reminder the system is rigged.

Bloomberg News has another blockbuster story today on the heels of its release of information about Federal Reserve bailouts. Here they have former Treasury Secretary Henry Paulson essentially aiding and abetting an insider trading scheme while in office. But will there be prosecutions?

The bankruptcy estate of Lehman Bros. claims that JPMorgan forced Lehman into a sudden bankruptcy, to save itself money it might have had to pay Lehman on derivatives. It’s another example of the wolves of Wall Street eating their own.

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