December 2, 2024 • 5 mins
Be a Righteous Capitalist. www.watchdogonwallstreet.com
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Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:00):
The Watchdog on Wall Street podcast explaining the news coming
out of the complex worlds of finance, economics, and politics
and the impact it will have on everyday Americans. Author,
investment banker, consumer advocate, analyst, and trader Chris Markowski.
Speaker 2 (00:16):
Be a righteous capitalist. I hate that phrase. All behind
every great fortune is a great crime? Really really?
Speaker 1 (00:29):
Yeah?
Speaker 2 (00:29):
What did uh? I don't know what did Ken Lang
gown and all the people over at home depot the founders?
What was their great crime creating thousands and thousands and
thousands of jobs? I get sick and tired of hearing
the nonsense. I also get sick and tired of the
left saying that, you know, basically the terrible rich people
(00:53):
paying their fair share. And I get this, I'm a
load of crap. However, are there liars, crooks and cheats
out there? People that and that ethical bypass at birth?
Absolutely we cover them here all the time. I like
(01:14):
to just kind of describe myself was an Adam Smith
capitalist righteous capitalists. I believe that two parties can sit
down and both walk away happy. There's no need to
get over on someone in order to feel successful in
(01:35):
any sort of deal. The true art of a deal
is for both parties to conduct business. Be happy with
that arrangement. So guess what you keep coming back again
and again and again. I often try to explain this
(01:56):
to people that sometimes you know young people as well,
sometimes you're great. Failures in business or when handling customers
is when actually sometimes things go wrong, Because sometimes things
do go wrong, and it's how you go about handling
that misstep. And if you handle it properly and you
(02:16):
deal with it properly, you can create a do the
right thing, You create a client or a customer for life.
Here's an example of someone that wasn't acting as a
righteous capitalist. Federal prosecutors charged longtime bond investor Ken Leech
(02:36):
with fraud, cherry picking a series of trades to favor
some clients while shifting losses to others. He was the
chief investment officer and trader at Franklin Templeton, their subsidiary
Western Asset Management. He allegedly signed over six hundred million
(02:59):
dollars and gains to favored clients and six hundred million
in losses to others. Now, again, can't do that, But
the reality is Wall Street does the same thing all
the time. You don't think that they pick and choose
(03:19):
who gets what deals and in it what time they do.
I saw this today and it reminded me of this
true story. This led to the downfall of Bernie Madoff,
one of the biggest Ponzi schemes of all time. Right,
(03:40):
he was hurting. He was hurting during the financial crisis,
and again, you know, nobody knew it. Nobody knew it. Again,
he is the smartest guy on Wall Street, all this stuff.
So he decided to start this new special investment, and
as it turns out, he invited ken Lang Goon ken langone,
(04:03):
a righteous capitalist in to be involved in this brand
new fund, and Madeoff was describing, Oh, yes, this special
trading strategy. It's somewhat different than the ones that we've
been doing, and you're expected to see a higher level
(04:23):
of return. Now, Madeoff had shown almost impossible consistent returns
every single year, mathematically impossible. Couldn't happen. Harry Markcoppolis discovered
that the SEC said, duh, we don't see nothing. But anyway,
that's another story. So ken Land going says to me,
(04:44):
so wait a second, I said, you're going to get
me involved. I'm gonna get involved I'm gonna put my
money in this special fund and I'm going to see
a higher level of return than the clients you've had
for decades. That's not right, that's wrong. That's that's something
(05:05):
that I would want to be involved with. Didn't make
any sense, and me got angry about the entire thing,
and that kind of led to the downfall right then
and there. But again, that's what a righteous capital should do.
You can smell special deals, cutouts benefiting you over others.
It's another good way of spotting a real crook. Again,
(05:27):
we talk about it all the time. If you see
a fraud, see a fraud, you know it's a fraud.
You don't report that fraud, you don't let people in
on that fraud, Well, that makes you a fraud too.
Watch Dog on Wall Street dot com
The Watchdog on Wall Street podcast explaining the news coming
out of the complex worlds of finance, economics, and politics
and the impact it will have on everyday Americans. Author,
investment banker, consumer advocate, analyst, and trader Chris Markowski.
Speaker 2 (00:16):
Be a righteous capitalist. I hate that phrase. All behind
every great fortune is a great crime? Really really?
Speaker 1 (00:29):
Yeah?
Speaker 2 (00:29):
What did uh? I don't know what did Ken Lang
gown and all the people over at home depot the founders?
What was their great crime creating thousands and thousands and
thousands of jobs? I get sick and tired of hearing
the nonsense. I also get sick and tired of the
left saying that, you know, basically the terrible rich people
(00:53):
paying their fair share. And I get this, I'm a
load of crap. However, are there liars, crooks and cheats
out there? People that and that ethical bypass at birth?
Absolutely we cover them here all the time. I like
(01:14):
to just kind of describe myself was an Adam Smith
capitalist righteous capitalists. I believe that two parties can sit
down and both walk away happy. There's no need to
get over on someone in order to feel successful in
(01:35):
any sort of deal. The true art of a deal
is for both parties to conduct business. Be happy with
that arrangement. So guess what you keep coming back again
and again and again. I often try to explain this
(01:56):
to people that sometimes you know young people as well,
sometimes you're great. Failures in business or when handling customers
is when actually sometimes things go wrong, Because sometimes things
do go wrong, and it's how you go about handling
that misstep. And if you handle it properly and you
(02:16):
deal with it properly, you can create a do the
right thing, You create a client or a customer for life.
Here's an example of someone that wasn't acting as a
righteous capitalist. Federal prosecutors charged longtime bond investor Ken Leech
(02:36):
with fraud, cherry picking a series of trades to favor
some clients while shifting losses to others. He was the
chief investment officer and trader at Franklin Templeton, their subsidiary
Western Asset Management. He allegedly signed over six hundred million
(02:59):
dollars and gains to favored clients and six hundred million
in losses to others. Now, again, can't do that, But
the reality is Wall Street does the same thing all
the time. You don't think that they pick and choose
(03:19):
who gets what deals and in it what time they do.
I saw this today and it reminded me of this
true story. This led to the downfall of Bernie Madoff,
one of the biggest Ponzi schemes of all time. Right,
(03:40):
he was hurting. He was hurting during the financial crisis,
and again, you know, nobody knew it. Nobody knew it. Again,
he is the smartest guy on Wall Street, all this stuff.
So he decided to start this new special investment, and
as it turns out, he invited ken Lang Goon ken langone,
(04:03):
a righteous capitalist in to be involved in this brand
new fund, and Madeoff was describing, Oh, yes, this special
trading strategy. It's somewhat different than the ones that we've
been doing, and you're expected to see a higher level
(04:23):
of return. Now, Madeoff had shown almost impossible consistent returns
every single year, mathematically impossible. Couldn't happen. Harry Markcoppolis discovered
that the SEC said, duh, we don't see nothing. But anyway,
that's another story. So ken Land going says to me,
(04:44):
so wait a second, I said, you're going to get
me involved. I'm gonna get involved I'm gonna put my
money in this special fund and I'm going to see
a higher level of return than the clients you've had
for decades. That's not right, that's wrong. That's that's something
(05:05):
that I would want to be involved with. Didn't make
any sense, and me got angry about the entire thing,
and that kind of led to the downfall right then
and there. But again, that's what a righteous capital should do.
You can smell special deals, cutouts benefiting you over others.
It's another good way of spotting a real crook. Again,
(05:27):
we talk about it all the time. If you see
a fraud, see a fraud, you know it's a fraud.
You don't report that fraud, you don't let people in
on that fraud, Well, that makes you a fraud too.
Watch Dog on Wall Street dot com
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